Germany: Carriers warn of supply chain collapse due to lack of AdBlue

Get real time updates directly on you device, subscribe now.

Transport companies warn of an “imminent collapse of the supply chain” of the market and point out that the timely supply of goods and services “is no longer safe”.

According to Handelsblatt, in a letter to the (acting) Minister of Economy Peter Altmeier, the Federal Freight and Logistics Union (BGL) and the Federal Business Association Omnibus explain the situation, which they attribute to the large increase in the price of net used in trucks, which in turn is due to the explosion in energy prices. Indicatively, a liter of AdBlue now costs 69 cents compared to 19 cents previously.

In their letter, the transport companies also state that “many companies are already stopping deliveries” and point out that a possible shortage of the solution that reduces emissions would affect 90% of truck transport. “The supply chain would be seriously endangered and the supply of goods and services to the population would no longer be secure,” the letter said.

Trucks and buses with Euro 6 engines are highly dependent on this auxiliary material. In fact, on many vehicles, the engine will not restart if the AdBlue tank is empty, leaving the vehicle stationary. AdBlue production is directly related to methane, the price spike of which has led many companies to stop production. Manufacturers must then obtain a CO2 certificate. The price of AdBlue is rising on the one hand because of rising raw material prices and on the other because many manufacturers, due to CO2 certifications, have reduced their production. In addition, “panic markets” are exacerbating the situation.

Transport Minister Andreas Sawyer said today that he took “very seriously” the transport industry’s warning and stressed that maintaining a smooth supply chain was a top priority.



Source From: Capital

Get real time updates directly on you device, subscribe now.

Leave A Reply

Your email address will not be published.