First the good news: the bicycle industry is booming, despite coronavirus, shutdowns and lockdowns. In 2020, according to the latest figures from the Zweirad Industrie Verband (ZIV) 17 per cent more bikes sold than in the previous year. A record year that has consequences. This is because manufacturers of frames, forks and add-on parts in the Far East are struggling with delivery problems (BIKE reported). According to scene insiders, it will take until summer 2021 for major manufacturers of shifting and brake components to get their delivery problems under control again. At the same time, the acute component shortage is jeopardising the delivery of complete bikes and making wearing parts a scarce commodity (>> Supply bottlenecks at Scott, Cube, Shimano, Sram & other manufacturers).
And now a container ship that ran aground is exacerbating the tense delivery situation in the bicycle industry. The giant freighter "MV Ever Given" blocked the shortest sea route between Asia and Europe for almost a week. Although one of the world's most important shipping routes is now free again, it will still take days for the backlog of around 400 ships on both sides of the canal to clear. "We have cargo on the 'Ever Given' as well as on other ships that were stuck due to the blockage of the canal. It is difficult to predict what delays can be expected as a result of this mishap. At the moment, the harbours, such as Rotterdam, are empty and will have to cope with an enormous rush in the coming days and weeks - we'll have to wait and see how well that works out. In addition, some ships have taken the diversions via the Cape - so they will be travelling for quite a while longer than planned," says Thorsten Lewandowski from Canyon when asked by BIKE. That's why not only the Wholesaler Hartje (SAZ reported) and Shipper Canyon who are expecting containers with bike parts on board the Ever Given in Rotterdam. Many other bike manufacturers and bike shops will also feel the after-effects in the coming weeks. Also Cube has confirmed to us that deliveries will be delayed due to the blockade, but the exact extent is not yet clear. "We know from some companies that they are waiting for goods that are currently stuck in or in front of the Suez Canal. But we can't say exactly how many and which companies in the bicycle industry are affected. It's not just about the ship 'Ever Given', the even bigger problem is the more than 350 ships that have now piled up on both sides of the Suez Canal. It can be assumed that these ships are also carrying goods for the bicycle industry. But we can't say the exact extent," says Anke Schäffner from the ZIV.
"According to the current status, delays of up to four weeks must be expected, as the congestion first has to clear and the goods then have to be loaded at the ports." (Anke Schäffner from the ZIV)
The Suez Canal blockade can be imagined as a temporary total closure on a four-lane motorway. Even if two lanes are open again afterwards, it takes a relatively long time for the tailback to clear.
Consequences of the blockade for the bike industry
The Suez Canal blockade is affecting the entire global economy. However, the timing is extremely unfavourable for the booming bicycle industry in particular, as warehouses were already alarmingly empty before the disaster. Bike manufacturers are also struggling with sharply increased freight and delivery costs for their products from the Far East. Even before the accident, it was around five times more expensive to bring a container to Europe than it was a year ago. Many manufacturers are passing these costs on to their customers (>> Prices for 2021 bikes). It is still unclear whether the Suez Canal blockade will continue to drive up container freight costs and therefore also the price of bicycles. What is certain, however, is that it will take a few weeks for ship freight deliveries to return to normal. After all, a week's delay in passing through the Suez Canal can turn into several weeks' delay due to the backlog at ports and during unloading. "The ports will now have to manage a real wave of incoming ships, which will certainly lead to further delays compared to the original unloading of cargoes," explains Thorsten Lewandowski from Canyon. In contrast, Anke Schäffner from the bicycle industry interest group is relatively optimistic: "The concrete effects are difficult to assess at the moment. Of course, companies are waiting for parts for production. Of course, this varies greatly from company to company, depending on which parts are actually on the ships and how much stock is still available in the production facilities. But at the moment, we don't expect this to cause any major disruption at the production facilities."
