Work of a Rubber Dealer
Rubber serves an important and essential role in supplying
a vital industrial raw material. We provide natural rubber,
which is produced
as an agricultural product half a world away, and synthetic
rubber, mostly from producers outside North America, to
the industry in Canada, the United States, and Latin
America. We sell under guaranteed delivery contracts with assured quality and at the lowest possible
price. We take legal title to all our material. We are
not brokers; we do not work on commission.
When you purchase from Astlett, you are dealing with an
experienced, reliable supplier who guarantees to supply
you as contracted. Security of supply for a material that
comes from overseas is important. Astlett carries stocks
and we have access to other dealers and factory safety stocks
in case the ship is delayed. For the same reason, Astlett
can supply spot, or fill-in shipments if you run short for
whatever reason. Conversely, if a customer needs to defer
deliveries of rubber, Astlett can often make mutually agreeable
arrangements by finding another customer or storing the
have long-term fixed orders, Astlett can provide matching
long-term contracts for you to secure the supply
of rubber. We will help you structure the contract to help
you meet your needs.
The cost of rubber to the consumer is the sum of the price
paid to the producer, the cost of ocean freight, insurance,
financing, overheads, mark-up and many small items. Most
such costs are negotiable or minimized by an efficient,
well-managed company. Astlett is an experienced and efficient
commodity importer. Our efficient operation enhances our
ability to satisfactorily serve our customers.
Astlett will fix
the price for forward delivery contracts beyond the
normal next arrival position. This permits companies to
fix their rubber prices against their own fixed-price contracts.
as Astlett, play a pivotal world-wide role in price discovery
for rubber. Producers naturally want the highest price for
their product. Consumers want the lowest price. In-between
dealers are the best independent mechanism for discovering
the true market price of rubber.
Astlett is responsive
to all requests for price indications or firm quotes. We
will give our frank evaluation of market trends. We value
our reputation for ethical dealing.
Astlett acquires rubber in South East Asia. The rubber is
paid for immediately after it is loaded on board the transport
ship. Additionally, payment is made for marine insurance,
booking fees, ocean freight, import duties, foreign exchange,
broker fees, inspection fees, banking fees and commissions,
handling, cartage, storage, as well as office overheads.
All these costs are paid out and financed until the customer's
The customer is
usually given normal trade terms of 30 days after title
passes to pay the invoice. The time period for financing
by Astlett ranges from 75 days for forward contracts, to
150 days or more for spot contracts. Dealer financing of
rubber shipments significantly reduces customer financing
requirements, thereby improving your company's balance sheet.
Transportation cost is a significant component of the factory
delivered cost. Astlett's thorough knowledge of ocean shipping,
ports and inland freight keeps costs to a minimum. Our
large-volume shipments with carriers from rubber producing
areas gives us negotiating power for better-than-tariff
delivery (including Just-In-Time delivery), avoidance
of damage, flexibility of destination, and insurance are
also considered. All play a role in the service provided
by Astlett to the customer. Astlett uses ocean containers
extensively to provide fast, just-in-time, damage free,
door-to-door delivery to your location.
distribution system moves rubber shipments from South East
Asia to, or near, your plant. This moves the essential raw
material closer in time and distance to its point of consumption.
To have the material this close reduces risk and uncertainty
for the consumer.
extensive stocks, at our own risk, as a service to consumers.
Extensive stocks of rubber are maintained at Norfolk, VA,
Toronto, ON, Montreal, PQ, and California. In addition, we have the ability stock rubber at any facility in North America.
Because of the
long supply line for rubber, both physically and time-wise,
not all businesses can plan far enough ahead to avoid out-of-stock
or over-stocked situations. The pooled rubber stocks carried
by Astlett is an economical solution to smoothing out fluctuations
in supply, rather than every factory carrying their own
safety stocks. Smaller consumers also benefit as they can
buy only as required for immediate delivery. Risk of storage,
handling, financing, insurance and market price changes
are assumed by the dealer.
Astlett provides Just-in-Time deliveries of natural
rubber using door-to-door container service from South East
Asia. In case of delay, our own pool of stocks is a backup.
Truckloads to Go
Customers have the option of mixed-grade truckloads for
immediate shipment. Astlett can provide this valuable service
because we carry stock. Not only are the customer's inventory
requirements for various grades minimized, but significant
freight savings are realized with truckload shipments.
Astlett passes on to the purchaser all useful technical
information furnished by the producer. Additionally, we
have resources of technical literature to answer your questions.
If you need further help, we will help you contact the Malaysian
Rubber Bureau or the original producer.
Astlett maintains preferred supplier lists, based on our
long experience with many producers of rubber. The quality
and consistency of the rubber produced is the most important
judgment, but packing, delivery and backup are also considered.
Natural Rubber is an international commodity, bought and
sold around the world, with prices set on a supply and demand
basis, resulting in fluctuating prices. Both physical (delivery)
and futures (hedging) contracts are traded.
are kept up to date on market levels by way of telephone,
email market letters and FAX reports.
Quality Natural Rubber Grades
All natural rubber comes as liquid latex from the Hevea
Brasiliensis tree. Due to genetic engineering, many different
clones of this tree exist. Differing production methods
also impart specific characteristics to the raw rubber.
Therefore, natural rubber is classified into numerous grades,
depending on production methods and technical properties.
all grades of natural rubber, including Technically Specified
Rubbers (TSR), Visually Graded (Green Book), Trade Marked
Types (our own and others) and special grades, including
its rubber from reliable producers. Our long experience
in the trade enables us to avoid poor quality and unreliable
sources. Price isn't everything.
Used by Astlett
Astlett uses a Natural Rubber Sales Contract that
very specifically sets the terms and conditions agreed to
between seller and buyer. A binding agreement
is reached because Astlett must immediately
enter into contracts with producers and/or futures exchanges
since time is of the essence in a commodity market where
prices can, and do, change rapidly.
The seller's contract
cannot be varied in any significant way by the buyer's purchase
order or confirmation. The rubber trade is both specialized
and exotic, thus the "custom of the trade", derived from
many years experience, holds. This "custom of the trade"
is embodied in the rules and regulations of the Rubber Trade
Association of North America, referenced in every contract,
as well as other bodies such as the Rubber
Manufacturers Association (Washington D.C.), the International
Rubber Association, and the Singapore
Commodity Exchange. These rules and regulations protect
the interests of both parties and rely on arbitration to
settle disputes rather than litigation.