Covid-19 has already been keeping the global economy busy for the past year. Since the beginning of 2021 the pressure on ink manufacturers has once again increased sharply and created significant challenges. The entire value chain is affected by a shortage of raw materials along with shipping containers and as a result is affecting the following:
• Increasing costs of pigment raw materials
• Tightening of petrochemical supply chains
• Cost growth for vegetable oil derivatives
• Exploding freight costs due to a reduced availability of containers
The combination of these factors has a direct impact on hubergroup's cost situation.
We are working intensively to minimize the impact of those cost increases by leveraging our global supply network, checking on different sourcing methods and the use of alternative raw materials. However, there is no alternative scenario for the tense sea container situation and the cost increase thus unavoidable.
Therefore, we will analyse the precise impact on individual products and get in contact with our customers if price increases are inevitable.