In May, there was a significant rise in Tetrasodium EDTA prices worldwide, driven mainly by disruptions in the supply chain. This chemical compound, crucial in many industries as a preservative and chelating agent, affected both exporting and importing nations. China, a key exporter, experienced notable price increases, impacting major importers like the USA and Germany.

The escalation in Tetrasodium EDTA prices can be attributed to multifaceted factors, with soaring freight rates emerging as a prominent catalyst. The unprecedented surge in freight costs, compounded by a shortage of cargo containers and extended lead times for overseas manufacturing, has presented formidable challenges for promotional product companies, including Tetrasodium EDTA, and importers/exporters across diverse sectors.

Robust demand for Tetrasodium EDTA, delays from the blockage in the Suez Canal, and capacity reductions by major shipping lines have created a logistical bottleneck impacting the Tetrasodium EDTA market. With empty containers in short supply, Chinese chemical manufacturers, including Tetrasodium EDTA, have struggled to fulfill overseas orders. The container shortage in Northern China is reaching crisis levels. Chinese traders and suppliers have had to turn away orders because they simply cannot secure enough containers to export their product.

Recent data reveals a staggering increase in freight rates, exemplified by the average cost of a standard 40-foot cargo container from East Asia to the North American West Coast surging by 69% between April 19 and May 24. This surge is underscored by various factors, including militant attacks in the Red Sea necessitating longer routes, incorrect shipping forecasts leading to inadequate capacity, and delays in container pick-ups due to heightened demand prompted by impending tariff changes in the United States and Latin America, impacting the Tetrasodium EDTA market too. The ripple effects of China's supply chain disruptions reverberated globally, with the USA, the world's largest importer, facing substantial shipping delays and overcrowding at ports due to increased import volumes and haulage shortages.

Ports such as Shanghai experienced severe shortages, leading to vessel waiting times ranging from three to 14 days. Similarly, Asian countries reliant on the Red Sea route, such as India, Sri Lanka, and Bangladesh, encountered significant challenges, including increased shipping costs, delayed shipments, and prolonged clearance processes.

German companies have faced similar pressures, with prices for Chinese Tetrasodium EDTA spiking over 65% since late April. Chemical distributors in the country have raced to secure supplies from alternate sources to meet demand, including Tetrasodium EDTA and other products. While Chinese suppliers remain favored historically for lower pricing, the current price volatility from that country has German suppliers and traders looking to diversify supply chains more globally.

According to ChemAnalyst, the prices of Tetrasodium EDTA are likely to surge in the upcoming months as well amidst global supply chain disruptions. However, since Tetrasodium EDTA is in powdered form and has a low shelf life, prices might decrease as market players aim to destock the product quickly to prevent damage. Therefore, market players might offer discounted prices for Tetrasodium EDTA to facilitate destocking.