Neighbouring countries feel German flood-induced supply chain impairments

Damage from heavy rains on the Ruhr and in other German regions have to some extent raised concern among buyers further afield.

“I had mail from German mills that claimed some kind of force majeure, telling us there could be delay of deliveries. The damage is mostly affecting their transports, rather than the production plants,” a Benelux manager says.

An assessment in terms of figures cannot be given by anyone as of yet. On the waterfront, so-to-speak, companies are still very much busy cleaning up and re-organising their logistics, rather than taking stock. “I do not have any time to talk to you now; I ask for your understanding,” says a service centre manager and friend of Kallanish, summing up the prevailing sentiment.

As far as Austria, some are preparing for additional shortages of coil products due to the flood. “We did get force majeure notifications from the cold-rollers, too, so we will feel delays in deliveries later on,” one manager says. The shortage already seen for months will be aggravated because of a domino effect, he says. “Our competitors and large consumers will now be looking for alternative sources,” he forecasts.

This could mean more buyers queuing up at the local Austrian mill, which could cause new delays for other Alpine customers. “It remains to be seen how bad that will turn out after the summer break when the automotive crowd comes back.”

Christian Koehl Germany