THE BENEFITS OF U.S. IMPORT FOR THE EUROPEAN CHEMICAL INDUSTRY
Out of all the industrial sectors, the chemical industry is the most interconnected with many other sectors. The rubber and plastics industry, for instance, sources a third of its raw materials from the chemical industry and the furniture industry is also very dependent on chemical products. This interconnectedness is exactly what could have far-reaching consequences for the economy if the chemical industry suffers due to rising gas prices, as stated in a recent study by Rabobank.
Replacing EU production with U.S. imports
If purchasing power, which is already lower due to high energy bills, comes under even more pressure, this will result in less orders for chemical companies. And if gas prices rise so much that they are no longer affordable for the energy-intensive companies making chemical products, they will have to close down.
The gas prices in the U.S. are ten times lower than in the EU, which makes it favorable to rely on U.S. export. Replacing the production of chemical products in the Netherlands by imports from the U.S. does not result in the collapse of the entire production chain. It can even be advantageous. In the U.S., energy-intensive industries are able to produce more cheaply. This means chemical products can be exported and consequently imported at a cheaper rate from the U.S. which is beneficial given the current inflation. Of course, there remain certain things to take into account in terms of the sustainability practices of the companies you are importing from. It is also essential to ensure good relationships with partners in the U.S.
What makes De Rijke’s U.S. partner network unique?
De Rijke’s partner network in the U.S. consists of like-minded companies, which share its DNA. We are a family business with visible management that is close to the business and understands what our customers need to differentiate themselves from the competition. Our partners in the U.S. are Transco Global and Rinchem Corporation. In the Far East, the main partner is called Milky Way.
De Rijke only works with companies that value safety, customer satisfaction and quality. This is applicable to De Rijke Europe, the Almajdouie De Rijke Logistics (MDR) - the joint venture in the Middle East - and its partner network in the U.S. Being able to serve its global supply chains is of utmost importance.
We want to be able to perfect and complete the logistics chain from the producer in the U.S. to its customer in Europe, the Middle East or Asia (or the other way round). We draw upon the knowledge and expertise of our partners and the own hardware, technical and engineering capabilities of De Rijke Group.
De Rijke’s select and specialized network provides both its customers and itself with all the necessary information in order to ensure it is constantly adding value. The aim is to focus on stable and long-term partnerships with specialists in logistics and chemicals and not on the general cargo or freight forwarders segment.
U.S.- EU transport options
Our contact with our customers and the ability to provide the best possible advice combined with compliance costs is what makes us unique. De Rijke offers transport options from the U.S. to the EU by water or by air. We can offer door-to-door transport, including all (customs) procedures. The type of transport depends on the demand, the product, the available time and the resulting urgency.
The duration of transportation depends on the mode of transport. Sea freight takes longer and depends on the place and port of loading. Sea freight from New York to Rotterdam (pier/pier) for instance, takes 8 days on average. (Time for pre- and on- carriage must be added to this). Air freight can be arranged in a day.
Ships transporting cargo from the U.S. to the EU are often fully booked at the moment so an early booking is essential to get space guaranteed on board. This is why we currently work with short-term quotes.
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