Whats with the tire shortage?

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stranger706

stranger706

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I'm shopping for 18" tires for our Explorer. 4 out of the 6 I'm considering are on backorder on all the major websites. Backorder: Firestone Destination General Grabber Bridgestone Dueler Alenza Goodyear Fortera Tripletread That leaves me with BFGoodrich Long Trail Michelin Cross Terrain (OEM tire, $$$$$$$$$$$) Just wondering if there is a shortage of rubber or something else going on? Never seen this before...
 
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Originally Posted By: stranger706
I'm shopping for 18" tires for our Explorer. 4 out of the 6 I'm considering are on backorder on all the major websites. Backorder: Firestone Destination General Grabber Bridgestone Dueler Alenza Goodyear Fortera Tripletread That leaves me with BFGoodrich Long Trail Michelin Cross Terrain (OEM tire, $$$$$$$$$$$) Just wondering if there is a shortage of rubber or something else going on? Never seen this before...
This is just my opinion, but it is put together from talking with some people who are in the tire business over the years. And when will those back-ordered tires be in stock again? Next October? Could be. If I am going to get new snow tires for an upcoming winter I ALWAYS order them months in advance because many times they only stock them once for the winter. The tire companies are in business to make money, and there is no profit in getting stuck with extra inventory. So why would they over stock? And why would you expect them to? It use to be that there were something like 18 different tire sizes. Now days there is something like 300 different tire sizes. There are too many tire sizes for the suppliers to try to stock enough of every one and expect to stay in business with the number of tires they would get stuck with. About the only good thing from there now being so many different tire sizes is that if you order tires online and they are dropped off at your front door while you are not home, there is less chance of them being stolen, because there is less chance of them fitting the car of anyone who would be interested in stealing them.
 
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Originally Posted By: dparm
Originally Posted By: daves87rs
Winter rush?
This.
Wow, I didn't know about that. Is there a shortage of all m-s rated tires or is it snow tires only?
 
Winter rush - us northern folks tend to wait till right before winter to replace tires to get the best traction for winter. Means tires shops are busy this time of the year, and a lot of tires get used, causing shortages elsewhere that aren't quite so seasonal. Applies to all tires - not just snows.
 
Allow me to add that the economic conditions are adding to this. Many factories were permanently closed early in the recession - and apparently they over-did it. As the recession went on, the demand for tires picked back up much more rapidly than expected. That lead to shortages. This was filled, to some extent with tires from China. That was followed with an accusation of tire dumping by the Chinese, which turned into a tariff. That lead to more shortages of available tires (read: non-tariff!) Interestingly, the demand for tires in the chinese market is increasing so fast that they are buying up the raw materials, - which leads to higher prices. In turn this has driven tire prices up - which usually results in a negative market reaction. Ironically, the demand for tires in the US is continuing to rise, and the price increases have been accepted with an indication that the market could tolerate more! And that's where we are today. Winter tires are typically made starting in the summer and into the fall. Production is stopped somewhere in mid fall. This means regular tires are NOT produced during this period. As was pointed out, there is an increased demand for all types of tires in the northern states in the fall and early winter months. There's also the end of the year inventory kind of thing, but that doesn't apply much this year as supplies are pretty low all around - and this has been known for several months. Sorry to hear about the difficulties obtaining the tires you want, but by February or March, this will probably reverse itself.
 
Yes I have noticed prices have gone up 20-30% over the past few years. For example, the Bridgestone Dueler Alenza for an Explorer was $160 when it first came out, and now its $210. Same tire, same size. Guess its a sign of the times...
 
There has been a natural rubber shortage over the last 3 years, and this has driven up tire prices.
 
I also heard that SE Asia has planted more rubber trees to meet demand, and they should start producing in a year or two, which will bring prices down.
 
Originally Posted By: SubLGT
There has been a natural rubber shortage over the last 3 years, and this has driven up tire prices.
This along with a few other reasons...
 
Originally Posted By: Kestas
I also heard that SE Asia has planted more rubber trees to meet demand, and they should start producing in a year or two, which will bring prices down.
I heard that the earliest they would be ready for harvest is 2012, but the huge rain storm in Thailand may wipe that harvest out and damaged some tire manufacturers' capacity. If hard drive shortage is any sign, rubber production in 2012 is going to be nasty as well.
 
Originally Posted By: PandaBear
Originally Posted By: Kestas
I also heard that SE Asia has planted more rubber trees to meet demand, and they should start producing in a year or two, which will bring prices down.
I heard that the earliest they would be ready for harvest is 2012, but the huge rain storm in Thailand may wipe that harvest out and damaged some tire manufacturers' capacity. If hard drive shortage is any sign, rubber production in 2012 is going to be nasty as well.
It was some of the worst flooding in decades, caused by many storms. You haven't seen rain until you experience a tropical "gray out"(like a white out but with rain). Hurricanes don't quite count, as that is horizontal rain...
 
Originally Posted By: daves87rs
Originally Posted By: SubLGT
There has been a natural rubber shortage over the last 3 years, and this has driven up tire prices.
This along with a few other reasons...
Yes, commodities speculators.
 
"Effective Jan. 1, 2012, Toyo Tire U.S.A. Corp. will increase prices on passenger, light truck and commercial truck tires to a weighted average of 6%. “The continuous fluctuations in currency exchange, raw materials and oil prices make it necessary for us to reevaluate our pricing and make adjustments accordingly,” says John Hagan, senior director of sales, Toyo Tire U.S.A. Corp. Toyo is the latest tire manufacturer to either 1) announce a price increase in the next two months, or 2) have implemented a price increase since Sept. 1." http://www.moderntiredealer.com/News/Sto...ollow-suit.aspx
 
Have you tried local retailers? My independent tire seller can always find those tires other cannot. His prices are typically the same or better than mail order without the hassle. His equipment is primitive though but they always balance.
 
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