A challenging availability of components and rising prices for raw materials such as natural and synthetic rubber are boosting costs across the market, along with increased freight cost. Most of additional cost will not affect YOHT EMEA customers (Alliance and Galaxy brand).
YOHT EMEA Faces up to Freight Market Challenges
The situation on global commodity and freight markets currently leads to major effects for Yokohama OffHighway Tires in terms of availability of, and cost for raw materials and shipment. Prices for natural rubber, synthetic rubber and chemicals etc. have seen a severe increase. The same is true for ocean freight cost. Despite these very challenging conditions, customers will only face a fairly moderate increase of tyre prices.
“The rising cost of some major raw materials is becoming more and more of a challenge, and prices are going through the roof”, says Angelo Noronha, President EMEA at Yokohama Off-Highway Tires. He continues: “In sum, this makes for strong effects, most of which will be absorbed by YOHT EMEA and hence will keep consequences for our customers to the minimum. However, a 4.5 to 5.5 per cent increase of prices will be inevitable.”
The first price increase of 4.5% to 5.5% was implemented on 1st Jan 2021. The new pricing will apply to the entire portfolio of Yokohama Off-Highway Tires EMEA (Alliance and Galaxy brand) and will take effect from 1 April 2021.