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October 6, 2021 – In the current situation, stainless steel buyers like to look to the supposedly cheaper bulk freight as an alternative to container transport. But is bulk freight really a solution? SEAISI sees robust growth in steel demand in Asia. Coming U.S. Midterm Elections: New explosive in steel dispute. And we’re pissed…

Stainless Espresso: Bulk Freight is no solution in stainless steel logistics
Stainless Espresso: Bulk Freight is no solution in stainless steel logistics

Bulk Freight: In the distress of high freight rates, a solution?

Supply chains have been strained since the Corona pandemic began. At the latest since more and more economies are reopening and industry is running at full speed, many already see the presents under the Christmas tree in danger.

Bulk freight a solution in stainless steel logistics?

Scarce containers and high freight costs mean that stainless steel buyers are now increasingly thinking out loud about the supposedly cheaper Bulk Freight. With bulk freight, goods are simply loaded into freighters without the protection of containers and shipped across the world’s oceans.

The risks of bulk freight

What is a good idea with bulk goods, such as coal or iron ore, means that damage is inevitable with stainless steel coils. Just imagine for a moment how the coils could be handled or hit each other in heavy seas.

Containers offer better protection, especially for stainless steel. In our opinion, it is also questionable whether an insurance company could legitimately claim that goods damaged in transit were not properly packed.

Coal crisis: Bulk freight costs rise

In addition to China, other nations are having to import more coal. India and Brazil, for example, are driving up bulk freight costs and reducing the availability of ships.

SEAISI: Asian steel demand on the rise

The Asian Steel Association (SEAISI) has released its first assessment of steel demand in the ASEAN-6 (Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam). It predicts robust growth in steel demand in 2021. It talks of growth rates of up to 50% in Singapore and 26% in the Philippines. The other countries expect growth in steel demand of between 3.2% and 6%.

U.S.-EU trade war: Explosives for Biden

For U.S. President Joe Biden, the U.S.-EU steel dispute currently has another explosive issue: the midterm elections. If the administration were to lower its shields against steel imports from Europe, it would mean opposition from politically sensitive steel states, such as Ohio and Pennsylvania. Which could further lower Democratic influence in the United States.

Opinion: We’re pissed at headlines from so-called experts

We are simply fed up with headlines like: “German Factory Order Slumps“. Just happened again. This time in an article by Peter Nurse on investing.com. Ever thought about why new orders might be down? Booked out. Therefore our tip: Switch on your mind and don’t just read headlines.

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