Rising freight costs from Asia to Europe are significantly impacting the pet food industry, driven by increased demand, port congestion, and multiple General Rate Increases (GRIs) by carriers since May. This situation is expected to persist through 2024 or possibly into 2025. Essential ingredients like carrageenan, guar gum, and amino acids sourced from Asia are crucial for pet food production and face potential delays, disrupting supply chains and affecting product availability. To mitigate these challenges, businesses should diversify supply chains, plan ahead, and establish strategic partnerships that offer access to safety stocks in Europe. Staying informed about market developments and proactively adjusting to new conditions will be essential for maintaining operations smoothly amidst ongoing logistical challenges.
Disclaimer – #PetFoodNation is operated by MBB which is the author of this article
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