Manufacturers across a wide variety of sectors face a new challenge with COVID-19. The supply of Castor Oil derivatives, an essential component for manufacturing greases, has been directly impacted by the COVID-19 pandemic and the shutdown in India, a critical supplier of Castor Oil derivatives. This nationwide lockdown in India has caused bottlenecks throughout the Castor Oil derivative supply chain and could have implications for companies across a wide variety of industries. Castor Oil is an additive commonly used in industrial applications such as lubricants, paints, and coatings.
In response to this issue, the trade section of the U.S. Department of Commerce has asked independent lubricant manufactures association (ILMA), National Lubricating Grease Institute (NLGI) and The Society of Tribologists and Lubrication Engineers (STLE) to identify the areas of disruption and work to remedy the supply chain threat. The group reports it has specifically focused on processing plants in India that have been forced to close as well as the transportation shut down, both of which are contributing to the logistics issues.
The group was waiting for word on India’s decision to ease some restrictions, hoping they would give priority to the supplies of Castor Oil derivatives. However, India has now extended their nationwide lockdown through May 3 in order to stop the spread of the Coronavirus (and it could be longer). Polsinelli’s International Trade Practice will continue to track this important global trade issue as it continues to develop.
