The Independent Automotive Aftermarket Association has highlighted what it says is something of a perfect storm in the global logistics sector, which is now having a real impact in the aftermarket both across Ireland and the UK. 

The problems are worldwide and across all industries, but the unique nature of an automotive aftermarket, where parts are often required urgently, compounds the situation. Also at a time when the aftermarket sector would expect a seasonal pickup and additional business as more cars return to the road, parts shortages are likely to be a key issue. 

In addition to the effects of the pandemic, the reasons behind what is fast becoming a crisis are varied. Firstly the price of shipping goods from Asia to Europe has soared. For example the price of shipping a 40ft container from Asia to Europe is now more than 10 times the price of a year ago. 

The second major factor is a shortage of HGV drivers which is Europe wide. However, the UK is especially badly affected because of EU drivers leaving due to Brexit. This UK driver shortage has a big impact in Ireland since so many goods are sourced across the Irish Sea. The UK government relaxation of driver testing rules will also take months to have an impact.  

Added to this it is also proving far more difficult to recruit for other logistics jobs, such as warehouse, goods in and out etc. leading to staff shortages and a reduction in capacity. 

Further up the supply chain, raw material shortages and price inflation are also having an impact, making parts more difficult and expensive to produce. Price volatility is not expected to improve this year.  

All of these factors have come together to make the sourcing of parts and components far more challenging than in previous years and have extended delivery lead times and increased prices.