Over the last nine months, several forces have come together to disrupt the world’s supply chains, including pandemic-propelled delays at international ports and February arctic storms that impacted and shut down gulf coast chemical processing plants.
As a result, major suppliers invoked the Force Majeure clause, a contract provision that relieves the parties from performing their contractual obligations when certain circumstances beyond their control arise, and notified customers that they will receive a significantly reduced allotment of raw materials.
This unprecedented disruption to the polyurethane supply chain is ongoing and affects all industries. In regard to polyurethane foam, major chemical suppliers remain impacted by Force Majeure clauses invoked by their upstream suppliers, so the entire supply chain is expected to remain tight well into 2022.
Clearly, this disruption is lasting longer than anyone anticipated with significant downstream impact to end customers. Check out the video below as Tom Marcy, COO of KPS Global®, provides an update on the polyurethane shortage, how it is affecting customers, and what KPS Global is doing to move forward productively.