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We want to be transparent with our clients and partners about the current situation: the Iran conflict is having direct, measurable effects on our supply chains and procurement processes from Asia. In this post we explain what has changed, how we are dealing with it — and what this means concretely for ongoing and new projects.
What has changed for us
Since the recent escalations in the Middle East, we are seeing clear shifts on two levels that directly affect our sourcing projects from China:
Air freight: routes get longer and more expensive
Large parts of Iranian, Iraqi and partly Syrian airspace are either closed to civilian cargo flights or only restrictedly usable. Cargo flights from Asia to Europe are diverted via significantly more northern or southern routes — across Central Asia, along the Caspian Sea, or via the Arabian Peninsula. The result: longer flight times, higher fuel consumption, higher insurance premiums for affected corridors.
Raw material: volatility on carbon fiber feedstock
Carbon fiber feedstock and chemical components for CFRP production partially come via supply chains influenced by the region — directly through routes, indirectly through energy price increases. We are seeing price adjustments at several of our Chinese suppliers, who pass these additional costs on.
Concrete impact on your projects
We want to be honest rather than sugarcoat the numbers. For ongoing and new sourcing projects this means:
Schedule: +25 %
What previously took 12 weeks from CAD to first sample, we now budget at around 15 weeks. The extension comes almost entirely from extended freight times and isolated material wait times at suppliers. Tooling and sampling times remain unchanged.
Cost: +20 % on raw material and air freight
For parts with high carbon fiber content and shipments that must run by air freight, we are currently calculating with a markup of about 20 % compared to our calculations from Q1. Parts that can run by sea freight are less affected — surcharges here are in the single-digit percent range.
What we are doing to absorb the impact
We are working on several levers in parallel to keep the additional costs and delays for our clients as small as possible:
Freight mix optimization. Where the spec allows, we are shifting more shipments from air to sea freight. For time-critical first samples we keep air freight but combine multiple shipments to reduce per-unit costs.
Earlier material orders. For ongoing projects we are pulling material orders forward to dodge price spikes and secure availability.
Alternative suppliers. For especially critical parts we are evaluating additional suppliers in India and South Korea whose supply chains are less affected by the region.
Transparent reporting. We communicate additional costs and delays early and traceably — no nasty surprises at project end.
What you as a client can do now
Three recommendations to minimize the impact for your own projects:
First: if you need parts in the next six to twelve months, talk to us earlier than you usually would. With three weeks of lead time we can get a lot done significantly cheaper and more predictably.
Second: check whether your first samples really need to come by air freight. For non-time-critical parts, sea freight can save 30 to 40 % of freight cost — at two to three weeks longer lead time.
Third: build a 10 to 15 % risk buffer on part costs and three weeks on the delivery date into your own project planning. That’s the honest recommendation in the current situation.
How the situation will evolve
We monitor the geopolitical situation and freight rates daily. As soon as the situation eases — and it eventually will — we pass the cost benefits directly back to our clients. Until then our commitment is: calculate honestly, inform early, find solutions together.
Have questions about a specific project, or want to know how the current conditions affect your need? Drop us a quick line at m.schach@schach-global-solutions.com or call +49 176 807 20356 — we reply within 24 hours with a concrete assessment.
