Most of the goods all over the world are transported by sea and the freight all over the world has been unstable and disturbed after the pandemic. There are multiple reasons for the freight increase such as the closure of certain ports, container shortage and fuel crisis in the global market. Freight has been quadrupled the rates it uses to be on. Currently, shipping lines are minting money and are have long schedules booked in advance.
China reduced its production for most of the industries in during the Winter Olympics in order to reduce carbon emissions in the country. This affected the tire industry in many ways, as it is mainly produced from rubber and petro-carbons like carbon black etc.Since the shipping lines made historical profits during the time of the pandemic, and now most of the countries are out of lockdowns, the ports are back at their normal running. Hence it seems that freight will stabilize and gradually reduce on most of the routes and ports. Especially from China.
The effect of the Russian-Ukraine war has shot up oil prices to the roof. And since the raw materials for truck (TBR) and car (PCR) tires are based on petro-carbon, the tire prices are bound to increase due to the sudden increase in the oil prices. Also, the holy month of Ramadan is coming the Middle Eastern countries will be less active and this will create space on the container vessels. With the decrease in freight, the world will be flooded with Chinese products and demand will be created.
