Transport update - June 2021
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- Category: News
- Published on Tuesday, 01 June 2021 12:30
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Richmond Hill, Ontario
June 1, 2021
At ITC, we are continually working to provide our Customers the best possible service. In these times of difficulties and uncertainties, many challenges are intensified due to COVID-19 and to its consequences on global issues. Please review our update on the latest developments – some related to the pandemic – which are out of our control and which will likely affect the delivery of products.
Shipping delays – Several events are causing important delays in transportation. A global shortage of shipping containers is driving a surge in import and export costs that is hitting businesses in Canada and around the globe. A consumer shift from services to goods, caused by the restrictions imposed by governments to control the pandemic, has made it harder for companies to get hold of the containers they need. Steamship lines have cancelled contracts and applied considerably higher freight rates on all containers destined to Canada.
Additionally, worldwide port and transportation infrastructures are under tremendous pressure and consequently many confirmed bookings are being cancelled and shipments delayed. We are working with our freight and logistics partners to try and keep our shipments moving, but unfortunately the inevitable result is higher rates and much longer transit times.
The Port of Montreal strike in April will continue to affect container shipping in Q2.
The situation is also serious for air freight, due to the limited number of flights, and cargo space.
Manufacturing delays - COVID-19 prevention measures and global shipping delays at most our manufacturing partners have resulted in significant increases in production times, which can be roughly evaluated in two to six extra weeks, depending on the situation, location and organization of each industrial facility.
We want to reassure our Customers that we are doing everything possible to ensure that all orders are minimally affected by this confluence of events. We have increased our stock levels ahead of time, in view of future disruptions. However, some delays will be inevitable. We encourage our Customers to plan their purchases well in advance, as we estimate that the effects of the situation we described will be felt until Q4 2021. Our Customer Service Representatives are ready to assist you at finding alternative solutions.
If you have questions about your existing or future orders, or about the situation that we have outlined, please contact us.
With kind regards,
Luca Fontana | Vice-President
ITC Electrical Components
