Timing is key for 2024 motorcycling season

We’ve done Covid-19 and grown used to rising energy prices. Now it’s 2024, and our crise du jour involves an important sea lane and those intent on disrupting its navigation. Houthi attacks in the Red Sea are affecting the tyre industry in numerous ways, with the flow of raw materials hindered in one direction and exports of end-of-life tyres hampered in the other.

Supplies of new tyres are being delayed too, creating complications for tyre makers whose production footprint lies on the wrong side of the Suez Canal. Our sister publication PneusNews.it attended Motor Bike Expo 2024 in Verona, Italy this week and asked about the impact of the current trade disruptions. Pirelli and Anlas shared a few words on the matter.

Uneven container distribution

Commenting on the business at the start of 2024, Danilo Bernini, Pirelli’s Moto business unit director for the Italian market, confirms that it’s “undeniable that the global geopolitical context does not help business.” Bernini speaks of the situation creating uncertainty for Pirelli. “Bottlenecks, such as that of the Suez Canal and the consequent diversion of ships that have to circumnavigate Africa and arrive directly in Hamburg or Rotterdam, tremendously lengthen delivery times and container freight costs, which once again become disproportionate.”

Furthermore, as was the case during the Covid-19 pandemic, Pirelli is experiencing an uneven distribution of containers, creating further delays and difficulties for the tyre maker. “This obviously worries us as a company,” Bernini comments. “We have two factories in the Far East that are affected by these problems, even though we are putting in place solutions that allow containers to arrive at their destination as quickly as possible. Fortunately, however, we have two factories, one in Germany and one in Brazil, which are not affected by these problems.”

Bernini believes the company that will emerge better from the current situation are those that are more structured, organised, and are positioned to implement alternative solutions. “And we are among them.” Nonetheless, the Moto business unit director urges customers in Europe to “remember that those who choose to postpone their purchases run the risk of running out of goods.” He adds: “Never before has it been as important as it is this season to place orders in good time.”

Danilo Bernini, Pirelli’s Moto business unit director for the Italian market (Photo: Ludovico Bencini / PneusNews)

Time as a competitive advantage

Unlike Pirelli, Anlas has no manufacturing presence in the Far East. For this reason, Pietro Delle Cave, who is responsible for the Turkish tyre maker’s European business, describes the disruptions in the Red Sea as a “great opportunity” for Anlas. “Container freight rates are rising significantly in price, and their availability is going down. Companies are committing containers in the medium term, and this is driving the price up further.”

Admittedly, business in 2024 isn’t entirely a bed of roses. Delle Cave observes that raw materials, which need to be important from locations such as India, are a disadvantage for Anlas. After all, the ingredients that make up a tyre must get to Europe one way or another, either as raw materials or within a finished product. Yet he sees one significant advantage for Anlas: “At a moment like this, time to market is crucial and being able to offer our range on time, compared to our competitors who produce in India or China, will represent a competitive advantage.”