As there continues to be a high demand for consumer goods globally and a severe shortage of space to ship these goods, ocean freight costs have surged for Q3 of 2021.
To ensure our business partners have consistent supply of product, we have directed our logistics team to secure any and all available space. With shipping demand at all-time highs, freight lines have seized this opportunity to boost their profits and sell space to the highest bidders. To better grasp the severity; freight which was once USD 3,000 - 5,000 per container is now USD 12,000 - 30,000, varying by final destination.
We have done extensive analysis, and at this time do not see the ocean freight charges starting to stabilize until Q2 of 2022. As many companies have done before us, we also have been left with no choice but to implement a temporary Ocean Freight Surcharge to your invoice. This will take effect on new and back ordered items that ship after September 15th, in the amount of 12.5%. This amount will be implemented at the invoice stage, and will be calculated after discounts and before freight charges.
We understand that adding costs is not ideal even temporarily, but under the circumstances we have made the difficult decision to share a portion of the rising prices while continuing to carry the majority of these costs.
Please note the below regarding the freight surcharge:
- This is temporary and will hopefully start to decrease in late Q1 of 2022, therefore not a standing adjustment to our pricing.
- It will allow us to secure bookings, increasing our overall supply rate.
- There are in-stock products updated daily which can ship before this takes effect.
We have included a few article links about ocean freight and where it is going for Q3 and Q4 2021.
We would also like to remind you that we offer several pricing structures based on your volume, we have directed our sales team to reach out to all of their customers and review these structures individually to see how we can assist in getting you to the next price level.
As always if you have any questions, our team is available. Please feel free to contact your territory manager, our National Sales Manager, Ryan Courtois at 314-267-6028, firstname.lastname@example.org or the office at 604-872-3116.