New Crisis Threatens CE Suppliers & Retailers
Suppliers to the CE and appliance industry, who are currently facing sea freight and processor supply problems, are set to face a new threat in the new year, additive for diesel vehicles.
Concern is mounting that thousands of freight trucks could be forced off the roads within weeks over shortages of a special anti-pollution additive that is used by trucking Companies to keep their vehicles on the road.
And of all countries behind the shortage, it is China that is the root cause of the problem.
Australia’s trucking industry has warned shortages of diesel exhaust fluid this summer could cause up to half of all trucks to be removed from the road claims the Australian newspaper.
Later today Federal Government representatives will be told how serious the issue is. Insiders claim that unless the government acts decisively on the shortage, there will be a cascading impact across the country, affecting supply chains that rely heavily on diesel powered trucks to deliver goods to retailers and warehouses.
Urea, which can be used as a fertiliser and feed supplement, makes up a third of DEF, which is injected into exhaust system to reduce the amount of pollution entering the atmosphere.
But the supply, mainly from China has been slashed claim experts.
National Road Transport Association chief executive Warren Clark said DEF was at risk of becoming the industry’s toilet paper, with many businesses rushing to buy stock ahead of an expected collapse in supply.
“We are talking about a supply chain that’s really under stress at the moment.”
The NRTA estimates up to half of all diesel trucks could be garaged because of the shortfall, with vehicles unable to operate legally without the emissions controls; it is also fraught to try to circumvent the diesel exhaust cleaning systems because there are no guarantee vehicles will operate properly or components will not be damaged.
The Australian Trucking Association has warned stakeholders the issue will become “much worse by February.” The ATA said many businesses had started stockpiling and buying bulk storage containers to hold the fluid in the event of a crushing shortage.
The ATA said the overwhelming majority of the Asia-Pacific’s supply of suitable urea came from China, amid suggestions China has almost halted urea exports as part of an attempt to cool down its domestic fertiliser prices.
DEF, which trades under the name AdBlue, enables the process that targets a vehicle’s nitrogen oxide, with sensors in the exhaust system monitoring the pollution levels. When it is needed, a spray of DEF is then injected into the exhaust system.
A diesel car may also not start unless the DEF is replenished in time claims the Australian,
There also have been price spikes in the US and Europe amid fears about urea supplies.