As we venture further into the promising yet unpredictable landscape of 2024, the wine and spirit industry faces unprecedented challenges that are set to disrupt the availability of glass bottles. Buckle up, because there may be turbulence to come.

What Factors Will Influence Glass Bottle Availability in 2024?

Government Duties Threaten Supply Chains

The United States International Trade Commission is likely to add duties to imports from overseas, particularly from Mexico, Chile, and China. This move is anticipated to disrupt supplies and inevitably escalate costs. The potential for increased duties adds an additional layer of complexity to an already intricate global supply chain.

Skyrocketing Freight Costs from Asia

It’s only February, and the freight costs from Asia have already doubled and European prices are beginning to follow suit. The surge is a consequence of a competitive rush to ship stocks to the United States. The heightened demand for imports, coupled with existing supply chain challenges, has led to a significant spike in transportation costs.

Domestic Glass Factories Attempt to Reduce Competition

Duties are a result of a few domestic glass factories suing the US commerce and trade commissions that import pricing is unfair. This is occurring while pricing is increasing on a frequent basis from the domestic suppliers. Not a good visual for an open market economy. In their quest to reduce competition, there will again be a glass shortage as we saw in 2021 and 2022 due to this harsh approach, exacerbating an already turbulent situation.

Understanding the Roots of the Crisis: A Look Back at 2020

In 2021, Global Package President and CEO, Erica Harrop, provided insights into similar challenges faced by the industry. The global labor shortage induced prior duties set in place in mid 2020 along with the pandemic, combined with disruptions in shipping, created a web of bottlenecks affecting every stage of the supply chain. 

The duties introduced in 2020 were over 40%, which combined with the 25% tariffs imposed the year prior caused a significant commotion for glass suppliers.

The demand for consumer goods surged, exacerbating the existing challenges. Rates soared as a result of container shortages, impacting freight costs and delivery timelines. While the 2020 duties were rescinded after a year, the 25% tariffs are still in place today. 

Harrop highlighted the importance of strategic planning and transparent communication during challenging times. “Our financial strength and established long-term relationships with suppliers in China, Europe, and here in the U.S. are enabling us to negotiate these many bottlenecks”. By working closely with reliable suppliers across China and Europe, Global Package initiated alternatives to improve production capacity and mitigate supply chain disruptions.

How Global Package is Meeting the Challenge of Glass Shortages in 2024 

As we brace for the challenges of 2024, it’s crucial to remain vigilant and adaptable. Global Package’s proactive approach, evident in our preparedness for the bottling season, serves as a model for navigating uncertainties. The importance of transparent communication, strategic partnerships, and a flexible supply chain cannot be overstated.

In a landscape where every decision reverberates globally, the resilience of the industry lies in collaboration, innovation, and foresight. As we navigate these stormy waters, the commitment to meeting customer expectations and deadlines remains paramount. It’s time to buckle up, stay informed, and adapt to ensure we can continue to provide a steady flow of high-quality wine and spirit glass bottles.

About Global Package

Global Package supplies high-end glass bottles to the wine and spirits markets across North America. Sourcing bottles from Europe, Asia and domestic markets, Global Package has an esteemed portfolio of bottles and packaging, specializing in sourcing and supplying glass, bottle customization, and speciality sourcing for small to large projects ensuring your product is presented affordably, effectively and professionally. Global Package has strategic alliances with innovative suppliers, designers and marketing collaborators both domestically and internationally, as well as stock across a local network of warehouses ready for dispatch.

Please contact our team with any queries you may have about our products or services. Fill out our contact form, email us at sales@globalpackage.net, or call us on +1 707 224-5670.