Supply of natural rubber for tire manufacturing purposes is also being constricted worldwide Photo courtesy of Yokohama Tire Corp

Yokohama to push up tire prices

Feb. 1, 2017
An up to 7% price hike results from higher raw material and freight costs, company says.

Yokohama Tire Corp. plans to increase prices on all of its tires sold in the U.S., including all consumer, commercial, and off-road units, by up to 7% starting April 1 – a move necessitated by a number of cost factors, noted Rick Phillips, Yokohama’s vice president of sales.

“This pricing action is necessitated by the high cost of raw materials and freight expenses that have impacted us in 2016 and will continue to be a factor in the business,” Phillips explained in a statement.

He added that some “in-line adjustments” across consumer, commercial and OTR lines will be determined within the month.

The Association of Natural Rubber Producing Countries (ANRPC) noted earlier this month that 2016 concluded “by witnessing a rebound in natural rubber prices in the fourth quarter, driven by recovery in crude oil market, supply concerns mainly caused by floods in South Thailand, renewed expectation of a U.S.-led faster global economic recovery and the resultant improved demand outlook.”

The group noted that during the three years from 2014 to 2016, global supply of natural rubber – including supply sourced from non-ANRPC nations - fell by an average annual rate of 0.6%, while demand grew at 3.2%.

Based on preliminary estimates covering all countries, including non-ANRPC, global supply of natural rubber stood at 11.975 million tonnes during 2016, which was short of the corresponding global demand by 655,000 tonnes. 

“The faster growth in demand helped to absorb the excess supply generated until 2013 and bring favorable balance between demand and supply,” the group added.

About the Author

Fleet Owner Staff

Our Editorial Team

Kevin Jones, Editorial Director, Commercial Vehicle Group

Cristina Commendatore, Executive Editor

Scott Achelpohl, Managing Editor 

Josh Fisher, Senior Editor

Catharine Conway, Digital Editor

Eric Van Egeren, Art Director

Voice your opinion!

To join the conversation, and become an exclusive member of FleetOwner, create an account today!

Sponsored Recommendations

Leveraging telematics to get the most from insurance

Fleet owners are quickly adopting telematics as part of their risk mitigation strategy. Here’s why.

Reliable EV Charging Solution for Last-Mile Delivery Fleets

Selecting the right EV charging infrastructure and the right partner to best solve your needs are critical. Learn which solution PepsiCo is choosing to power their fleet and help...

Overcoming Common Roadblocks Associated with Fleet Electrification at Scale

Fleets in the United States, are increasingly transitioning from internal combustion engine vehicles to electric vehicles. While this shift presents challenges, there are strategies...

Report: The 2024 State of Heavy-Duty Repair

From capitalizing on the latest revenue trends to implementing strategic financial planning—this report serves as a roadmap for navigating the challenges and opportunities of ...