Red Sea Crisis disrupts tyre industry's supply chain

22 Jan 2024 CW Team

Regarding the movement from India to the US, Budhraja stated that there is no observed impact on transit times to the West coast, but there is an increase of 8-10 days to the East coast. Freight rates have doubled to the West coast, and there has been a 40% surge in rates to the East coast. Container availability has also been affected to some extent, although not to the extent of disrupting operations, he added.

Budhraja highlighted the significance of the Red Sea as a crucial channel for shipping to the US East Coast, Europe, West Asia, East Asia, and Africa from India.

Rajiv Tharian, who works with Southland Rubber Group, a major processor and importer of natural rubber to the Indian market, shared that the freight rates from Asia to Europe have increased by 300%, Asia to the US by about 200%, and freights for various routes, including Africa to Asia, have gone up by around 100%.

Furthermore, there is a severe shortage of containers, and the increased circulation time for boxes during voyages is causing significant delays in planned shipments from all locations. This emerging situation has prompted many tyre companies, especially in the US and Europe, to aggressively purchase for nearby shipments and increase their buffer stock of raw materials, including natural rubber, due to the risk of delays in shipping in the coming weeks and months.

The impact of the Red Sea disruption is being felt in the Tyre Industry in India, affecting both transit times and freight rates. This is adversely affecting both tyre exports and the import of raw materials. Rajiv Budhraja, the Director General of the Automotive Tyre Manufacturers? Association (ATMA), mentioned that the freight rates from India to Rotterdam have increased by 3-4 times, and transit times have extended by 14 days due to ships being diverted through the Cape of Good Hope. Regarding the movement from India to the US, Budhraja stated that there is no observed impact on transit times to the West coast, but there is an increase of 8-10 days to the East coast. Freight rates have doubled to the West coast, and there has been a 40% surge in rates to the East coast. Container availability has also been affected to some extent, although not to the extent of disrupting operations, he added. Budhraja highlighted the significance of the Red Sea as a crucial channel for shipping to the US East Coast, Europe, West Asia, East Asia, and Africa from India. Rajiv Tharian, who works with Southland Rubber Group, a major processor and importer of natural rubber to the Indian market, shared that the freight rates from Asia to Europe have increased by 300%, Asia to the US by about 200%, and freights for various routes, including Africa to Asia, have gone up by around 100%. Furthermore, there is a severe shortage of containers, and the increased circulation time for boxes during voyages is causing significant delays in planned shipments from all locations. This emerging situation has prompted many tyre companies, especially in the US and Europe, to aggressively purchase for nearby shipments and increase their buffer stock of raw materials, including natural rubber, due to the risk of delays in shipping in the coming weeks and months.

Equipment

07 Nov 2025

Liebherr’s 10,000th XPower Wheel Loader Joins BERGER’s Fleet

BERGER Rohstoffe GmbH has welcomed the 10,000th Liebherr XPower wheel loader to its operations at the Schlag granite quarry in Passau. The milestone machine, officially handed over at Liebherr’s Bischofshofen plant in May 2025, underscores the long-standing partnership between BERGER, Liebherr, and the Beutlhauser Group. Equipped with Liebherr’s signature power-split travel drive, the new L 580 XPower is already delivering strong results under demanding quarry conditions.At the Schlag quarry, BERGER Rohstoffe processes approximately 200,000 tonnes of Bayerwald granite annually into high-qu..

Infrastructure Urban

07 Nov 2025

BorgWarner Expands AWD Supply Partnership with Chery

BorgWarner has announced multiple new contracts with Chery to deliver its latest All-Wheel Drive (AWD) technologies, including the torque-on-demand transfer case with mechanical lock (Mlock TOD) and its sixth-generation Cross Wheel Drive (Gen VI XWD) system. Mass production is set to begin in 2027, marking a significant expansion of the long-standing collaboration between the two companies.“This collaboration leverages BorgWarner’s broad product portfolio and technical expertise to support Chery’s growth in China and global markets,” said Isabelle McKenzie, Vice President of BorgWarner..

Infrastructure Urban

07 Nov 2025

K2 Infragen Appoints Vikas Lakhanpal as Whole-Time Director

K2 Infragen has announced the appointment of Vikas Lakhanpal as Additional Director (Executive) and Whole-Time Director for a five-year term, subject to shareholder approval. The appointment reinforces the company’s strategic focus on leadership excellence as it advances its growth, operational capabilities, and innovation-driven transformation. Lakhanpal will lead the company’s Supply Chain function and play a key role in strengthening operational performance across all project domains.With nearly 30 years of global experience in supply chain management, operations, and business leadershi..