It has been widely reported in recent months that the global Covid-19 pandemic, and the resulting disruption this has caused to the international logistics sector, has resulted in dramatic and unprecedented increases in the cost of sea freight.
A combination of an upturn in demand for exports from China and SE Asia, limited availability of shipping containers and increased vessel turnaround times due to port congestion, have resulted in significant and sustained cost increases. This ongoing problem has had a particular impact on the activated carbon industry since most of our virgin carbons are sourced from that region.
As an example, a 40’ container, which 12 months ago would have cost around $1,500 to ship from China to Europe, now costs in excess of $10,000, an increase of over 500%.
It is not possible for Puragen, and its sister organisation Puragen, to continue to absorb these dramatic cost increases, which look likely to continue for the foreseeable future. We will therefore reluctantly be imposing an International Freight Surcharge (IFS) on sales to European and UK customers, where contracts allow, from April 2021. The IFS will be a direct pass-through of these additional freight charges and will depend on the source country of the particular carbon grade involved. The IFS will, of course, be cancelled as soon as the global freight situation returns to normality.
We will be in touch with customers with further details over the coming days and weeks. The Puragen team would like to thank you in advance for your understanding and cooperation.
