HAMMOND’S GLOBAL SUPPLY CHAIN
Hammond’s global supply chain to rescue in testing times for lead battery sector Two main free trade arteries are now disrupting supply chains with drought reducing transport through the Panama Canal and ships avoiding the Red Sea-Suez Canal route because of attacks arising out of Middle East conflict. Prices are rising and schedules are being extended but Hammond’s global footprint — with facilities in North America, Asia and Europe — means the firm is an invaluable and reliable supplier to the lead battery industry. Shipments through the Panama Canal, a vital link to Asian lead battery firms from North America, are being severely disrupted by drought. The Panama Canal Authority says
2023 was the second driest year in recorded history, compounded by a late rainy season. As of early January 2024, some vessels queuing to use the canal had to wait more than 11 days — and the International Maritime Organization has forecast the drought’s impact could hamper trade for months to come. Now Hammond, a key supplier to global lead battery markets, is highlighting how its strategically-located plant in Malaysia can mitigate supply chain risks for Asian battery manufacturers, while other US producers of material for the lead battery sector remain reliant on the canal.
Some US companies are scrambling to use rail links to reach US west coast ports for onward shipping to Asia, but are already experiencing congestion and seeing transportation costs ramp up, while also increasing carbon footprints. Hammond’s Kuala Lumpur plant manufactures expanders and its SureCure TTBLS products, serving an extensive Asia Pacific customer base, with the capacity to supply new customers, including the burgeoning South Korea market, while offering production lead times of just 10-14 days. Asian companies sourcing Hammond’s Malaysia operation also
In normal conditions shipments through the Panama Canal are a vital link to Asian lead battery firms from North America
20 • Batteries International • Winter 2023/24
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