Winter Tires to Cost Way More This Year
Winter tires coming from Asia will likely fetched 10-15 percent more this year due in portion to progressing worldwide shipping challenges.
“We’re going through a perfect storm,” says David Giguère, Vice President at Groupe Touchette. “After COVID-19, production temporarily suspends and the expanded costs of materials, we must presently bargain with shipping issues. And shoppers will most unquestionably got to pay higher costs as a result.”
While certain makes just increase the price to around 5 percent, others will sell their winter tires 10-20 percent more comparing to the last year’s prices, several sources have confirmed to Journal de Montréal.
Asian manufacturers—Ironman, Nexen, Kumho, Sailun, Toyo, Westlake and Yokohama—may not be alone, mind you
“Since a number of top producers from the U.S. and Europe—including Bridgestone, Goodyear, Michelin and Pirelli—have moved their production to cheaper nations such as China, Thailand and Indonesia in later a long time, pretty much the whole industry will be affected,” Giguère clarifies.
Growing Concerns
The Chinese harbour of Ningbo-Zhoushan, the third biggest in the world, was somewhat closed for two weeks, adding to tire retailers’ concerns. It continued operations on Wednesday, but expanded costs are still to be anticipated.
“Manufacturers are paying up to an extra $10,000 per shipping container [coming from Asia],” says Patrick Lavoie, Vice President of Marketing at Distribution Stox, which serves as an middle man between tire producers and retailers. “There may be a bottleneck when it comes to containers. And once you find a container, you need to find a boat, too, which is another problem.”
No Shortage Yet
We may not see a shortage of winter tires this year, but selection could be significantly limited, industry experts warn
“We’ve placed our orders earlier than usual in order to avoid late deliveries, but even so there are still some concerns,” Giguère adds.
Same thing at Distribution Stox, which doesn’t expect a tire shortage this winter. Most of the inventory it needs for the season is already stored in its 17 distribution centres. Tires from Asian makes are in shorter supply than those manufactured in North America, however.
Source: The Car Guide
