The UK, the victim of a new covid19 mutation, is in the current spotlight. In 2021, the entire supply chain of the UK flat glass market will be destabilized by the growing shortage of glass.
The forced isolation of the UK.
Since Monday 21 December 00:00, the United Kingdom has been isolated from the countries of the European continent: Ireland, Germany, France, Italy, the Netherlands and Belgium have stopped all their flights but France has also stopped all cross-Channel traffic (passengers and goods). Eurotunnel has suspended access to its Folkestone terminal from 22:00 GMT for traffic towards Calais. The Dover ferry terminal is now closed to all accompanied traffic leaving the UK until further notice due to French restrictions.
For the past few weeks, 9000 trucks have crossed the Channel every day; they represented an increase of more than 50% over usual traffic in anticipation of possible taxation following a no-deal in the Brexit negotiations between the British government and the European community.
The BBC says Prime Minister Boris Johnson will chair a Cobra emergency response on Monday to deal with the steady flow of freight to and from the UK and the European Union is due to hold a similar crisis meeting today to coordinate his answer.
This umpteenth episode of the Covid19 crisis that we had already considered "From one country to another, borders can open and then close ..." intermingled with the Brexit negotiations shows the fragility of our supply systems.
Shortage of glass ...
The British archipelago has met for many months (as everywhere in continental Europe) a lack of flat glass. Producers have reduced production to adapt to the waves of the coronavirus, which creates tensions in the recovery phases of activity.
“Glass is still warm to the touch when it reaches us” said Mark Herbert of Mackenzie Glass. "It shows you the pressure on the flat glass supply chain." The Mackenzie Glass company's relationships with its major suppliers including Pilkington, Saint Gobain, Guardian and AGC have proven to be vital in maintaining product availability into the end of 2020.
As a result, three glass price increases were seen in 2020 and this is expected to continue in the first half of 2021.
The shutdown of the furnaces and Brexit are real hardships to overcome!
Saint-Gobain Glass and Guardian Glass have long scheduled the reconstruction of their respective furnaces. Two of the UK's main lines will be closed for cold maintenance programs for four to five months each in 2021.
Normally, during a cold repair, the Supply Chain organization artificially increases the glass stock in order to continue to partially supply the needs of its customers. Unfortunately, the shortage observed this year did not allow this maneuver: the king is naked! This will require a supply of more than 30 deliveries per day from the continent by line, i.e. a total need of 150 trucks (inloaders) only dedicated to this flow to make the journey and the crossing back and forth.
Brexit questions complicate the data in the transport equation. No one knows how long the trucks will be waiting at the UK-EU border
A shortage of glass in Europe is regularly accompanied by a shortage of trucks to transport it because the less glass we have, the more we move it ...
The latest negotiations (according to the echoes that reach us) led by industrial producers of flat glass have very clearly decreased transport prices and reduced European transport capacity.
The negative impact on customer service will be major in 2021 in the British Isles as prices go up: C’est un scandale!
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