Import Surcharge

As you are all no doubt aware that the supply of materials is becoming ever more difficult and challenging with supplies from around the world being extremely problematic for all companies.

Like everyone else, we face two major concerns at the moment:

1. Raw material supply and costs

2. Transport and deliveries.

As these currently stand, we cannot continue to absorb these increases.

Raw Materials

In relation to raw materials, it is safe to say that this is probably the worst situation for over 30 years (quoted by many in the industry). We have orders in place under existing trade agreements, with all our major suppliers that cover expected demand for the rest of this year, unsurprisingly however, force majeure has been quoted by nearly all of the suppliers. Not only are supply dates not being guaranteed but obtaining the ordered quantity is a challenge as well. On top of these supply issues, surcharges are being applied, creating exponential cost increases.

The general opinion is that these issues will be around until at least the end of the year and probably into Quarter One of 2022.
Transport

As you will have seen and read in the news, there have been lots of issues with container deliveries globally. Shortage of sea vessels and difficulty in securing empty containers is being experienced all around the world. The most affected routes for us are China, India and Brazil. We have seen a price increase on sea freight of 400% from China and 200% from India when we have been able to secure shipping.

To combat some of the above issues and until freight prices go down, we have to share some of the increase by way of an import surcharge on Chinese, Indian and Brazilian products. This will allow us to keep your actual product prices unaffected.

The surcharges will be:
Brazilian Slate
10mm £3.75 pm2 + VAT
20mm £7.25 pm2 + VAT
30mm £11.00 pm2 + VAT

Indian Stones and Chinese Split Face
£3.25 pm2 + VAT

This charge will be shown as a separate line in the order/quote price summary.

Fernando Queipo


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