The ongoing conflict in the Middle East continues to impact global supply chains, significantly affecting costs across the industry and placing increasing pressure on both logistics and production.

Fuel-related costs continue to escalate, driving higher transportation costs across all areas of our business, from outbound deliveries to inbound raw material supply. In addition, key raw production materials, such as block glue, have risen significantly, both quickly and unexpectedly. As a result, our production costs are increasing and, consequently, the overall cost of goods.

As the situation does not appear to be stabilising, maintaining current price levels is becoming increasingly challenging across the industry. Costs are rising week by week, and it remains difficult to predict how the coming months will develop. What was once seen as a temporary disruption is now becoming a more permanent condition, with price instability turning into a daily part of global trade.

Pressure Across the Entire Supply Chain
Costs are rising across multiple layers at once – not just in one part of the supply chain, but across transport, energy, and raw materials simultaneously.

Disruptions in Global Transport Routes
Shipping routes are being disrupted and rerouted, leading to longer transit times, higher fuel consumption, and increased complexity in logistics planning.

Increasing Freight and Insurance Costs
Freight rates and insurance costs are rising, adding further pressure to already elevated transportation expenses.

Longer Lead Times and Planning Instability
Companies across the industry are increasingly facing longer lead times, short-notice schedule changes, and reduced reliability across logistics networks. This is not only a question of rising costs, but also a loss of planning stability.

Baltic Block is actively managing the situation and closely monitoring developments. Despite challenging market conditions, we remain firmly committed to transparent and timely communication. We act proactively and work side by side with our customers, clients, and partners across more than 30 countries to navigate this situation together.