Raw Materials, Logistics and Other Costs That Impact Manufacturers For Aquaculture in 2022

25 May 2022by Javier Cruz
https://www.fishfarmfeeder.com/wp-content/uploads/2022/06/logistics-aquaculture-material.jpeg

In recent years, the world has been facing situations that, in one way or another, affect us in our daily lives. Among the recent ones there are two main concerns: Covid and the War in Ukraine. Not just in a private life but as well in our business activities.

In this post we want to share the impact that the external circumstances have on manufacturers, suppliers, and customers in their daily work in the following areas:

  • Orders – Sales
  • Payments
  • Deliveries

Delays in delivery of raw materials for manufacturers of aquaculture products

Since the time of COVID, the lack of some raw materials on the market (microchips…), in addition to the extra cost that we will comment later, directly influences the delivery terms of goods.

Consequently, manufacturers face difficulties when it comes to meeting delivery deadlines.In some cases, they find themselves with machines almost finished which cannot be delivered for months due to the lack of an essential component needed for correct performance of the equipment.

This delay requires more storage space for semi-finished products and causes extra costs.In addition, in some cases, it forces the customers to update their construction planning and schedules.

Delivery of raw materials by cargo ship
Warehouse with materials and products for aquaculture

Raw material and components costs for aquaculture

The increased costs, as a consequence of the global problems, affect, in a very disparate way, each type of material and/or component that is used by manufacturing products for the aquaculture sector.In some cases, we speak about cost increases of up to 40% in less than a year.

Costs of materials and components for aquaculture

Due to this costs instability, companies that work in the aquaculture sector, especially those that offer customized products, are forced, as in many other sectors, to shorten the validity of their offers, as well as update their previous price inquires.

Sectors whose projects are planned for several years, and their execution is divided into various phases, this cost increase requires more frequent reviews and budget updates with the suppliers, as well as their execution.

Impact on logistics and delivery of products to fish farm

Among the key elements influencing the aquaculture sector in 2022 is logistics.Especially we may highlight the following issues:

Impact on logistics and delivery costs in aquaculture
  • Problems of cost overruns in transport.
  • Rise in fuel prices.
  • Unavailability of containers.
  • Delays caused by the cargo ship which has blocked the sea transport in the Suez Canal. It had impact even several months after the incident, without being normalized until now.

FishFarmFeeder, like any other company in the supply chain for aquaculture, we are working daily to face this situation with the reduced impact on our clients. We are convinced that this will be normalized soon. Meanwhile we thank to all involved parties for their understanding, especially in terms of the economic consequences and deliveries.

FishFarmFeeder is the only global manufacturer of automated feeding systems for all stages of fish feeding- on land, lakes or sea.
Learn about our products and their benefits for your aquaculture farm!

Javier Cruz

Founded in 2008, we manufacture only feeding systems for Aquaculture, feeding all stages of the life of the fish and/or shrimp.

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