COVID-19 and Component Lead Time Impacts on Global Supply Chains
Due to the current wave of Covid-19 in the US and the initial recovery to the global economy that has increased the demand for materials, there is a possibility that delivery dates for your orders may be impacted.
Impact on Ocean and Air Freight:
- Due to port congestion in the US and other factors, we are seeing ocean freight transit times stretch out to 50+ days (normal transit time is 35-42 days)
- Due to lower supply and increase demand for space, East West is seeing cost increases for both ocean and air freight shipments.
What East West is doing to lessen the impact:
- We’ve moved to four freight forwarders to increase space on ocean vessels and are booking space 6 weeks in advance of sailing.
- Optimizing containers by availability – ex. If no 40’ container is available, using two 20’ containers instead.
- Increased tracking and communications for our customers – Any shift in schedule is reported daily.
Component Lead Times:
- Many of our suppliers have sent us notices recently stating that, due to the pandemic and strongly increasing demand, lead times on components are extending and they will be increasing component prices.
- Demand is growing overall in the marketplace across product lines due to the stabilizing of the general economy. However, the component manufacturers’ factories do not have the raw material and personnel in place to increase production quickly due to Covid.
- Due to a spike in economic activity, East West is seeing the lead-times for both electronic components and raw materials (plastic resins, etc.) extend out.
East West asks that customers provide updated forecasts and/or firm orders through Q1 2021 so that we can better plan for component lead times in the upcoming months.
We will continue to work with distributors and component manufacturers to best minimize the impact of these developments. However, future orders could result in extended deliveries based on this latest information. Please do not hesitate to speak with your contact here at East West. We will continue to update you as new information is received.
The East West Manufacturing Team