Supplies and shipments from China: delays and price increases 2021

Dear Customer, I would like to share some considerations related to the situation that has arisen as a result of the Covid19 pandemic and that could impact our economy in the coming months. The exponential increase in exports from China, first to the American market and for the past couple of months also to the European market, has created an extraordinary situation that is causing a "bottleneck" in maritime transport, which is no longer able to handle the huge volume of goods. The direct consequences of the increase in demand have been both a dizzying rise in freight costs (both by sea and by air) and delivery times for goods. Several giants such as Volkswagen and Amazon are forced to slow down due to a lack of raw materials and products, and at this moment it is difficult to predict when the situation will return to normal. Unfortunately, the shortage of some components is also impacting the factories of some of our suppliers who are extending production times, in some cases already announced in the range of 150-180 days. In order to avoid production stoppage and consequently the inability to deliver goods and/or meet your requests, I kindly invite you to analyze your needs for the coming months and, if possible, to plan in advance to meet your requirements. Thanking you in advance for your cooperation and understanding of a situation beyond our control, I remain at your complete disposal to manage your needs. Best regards, Marco Olivieri Sole Director