Covid started spreading around the world in March 2020. Initially, trade was not affected to badly but within a few months, International Trade had major problems.
Thankfully, all our customers and suppliers have kept going and survived. We have all worked closely together and been realistic. The biggest problem has been frustration due to the huge logistical challenges. As for Cayley, we have had to work very hard but have managed to maintain our sales volumes and hold the business in profit.
Covid
This disease has caused so many problems. Closure of factories, closure of ports, ships canceled. Ships held in port under quarantine. Lack of demand.
Inflation
Prices of all raw materials have increased dramatically. Some by as much as 300%. This has made trading very tricky. Very often factory prices are only valid for 5 days and then need to be checked and usually the price is up. This trend is still going on.
Availability
Due to lack of factory workers, often lead times are 3 months which is so bad. Our customers need us to be a reliable supplier and we have struggled through no fault of our own.
Freight
Once Covid was under some sort of control in Europe and the USA demand increased dramatically, resulting in freight rates going up by as much as 500% – the freight companies managing to take advantage. This also applies to airfreight. Typically a 20ft fcl from China to Europe has increased from Usd 1,000 to Usd 5,000 but hopefully prices will come back down soon.
China / India
China has had the strictest Covid rules of any country. On top of that they have been implementing a very tough clean environment policy – as a result many of our suppliers have been shut – some for several months. Also Ports have shut. Ningbo port has been closed 4 times in the past 6 months.
India had terrible Covid and restrictions in early 2021 and we really struggled to inspect goods, arrange transport and ship – but we did. For the last 6 months India has been good and we picked up a lot of volume (almost Usd 600,000) by buying from India. Also shipping from India to Mombasa has been good.
Cash flow
Our customers have been able to pay us mostly ok but it has not been easy. We have managed to maintain our reputation of always paying our suppliers on the due date. Cash flow is my constant headache and hopefully it will improve soon. Fortunately our balance sheet is strong and we have been careful to not over-trade.
Currency
Since Covid started Gbp / Usd / Eur have not moved a lot. We trade back to back so no issues
Nigerian Banks
The old system of Form M, presenting docs, bidding is not working. Very frustrating. We manage with innovation but not easy.
Brexit
Getting goods from the EU to the UK for shipment to our customers is not easy. Takes longer by about 10 days than the past and costs approx. £150 more per shipment.
Conclusion
CCC Trading Ltd t/as Cayley Chemical Corp has survived, and grown a bit. It has been very hard work and I thank especially our admin manager: Shelley. I also thank all our customers and suppliers and freight forwarders.
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Cayley Chemicals can supply a very broad range of products at very competitive prices to virtually anywhere in the world. Get in touch with us now with your name, email address, product name, specification, quantity, destination and any special requirements and we will get back to you very quickly.
