Situation in Red Sea adds costs and time to shipment of products
Costs can no longer be absorbed and need temporarily to be passed on
Surcharge will be removed as soon as situation returns to normal
As a global manufacturer of diversified organic, inorganic and anti-corrosive pigments, pigment preparations, dyes and specialty materials, the Heubach Group is affected by the situation on the Red Sea and Suez Canal. As a consequence, it will pass on the surcharges that global carriers have imposed on their shipments as of February 1st, 2024.
A temporary freight surcharge between EUR 0.10/kg and EUR 0.25/kg for pigments, preparations and will be added to the product price. It has been calculated based on logistic routes, raw material origin and plant location. The surcharge can be released or further increased depending on escalation or termination of the conflict in the Red Sea.
“Heubach has been monitoring the situation closely in recent weeks and has adopted its business to ensure there is as little impact as possible on supply of our pigments, preparations and dyes”, says Tyler Kilgannon, Senior Vice President Sales Europe and Americas. “But the short term changes and new routes adopted add not only additional time in transit, but also cost.”
“After the logistic price increase in Europe and the Americas and recently also in Asia we are committed to keep all cost drivers under control and the impact on our customers at a minimum. But after significant reflection, we can no longer absorb these higher logistic costs”, says Takayoshi Miyatani, Senior Vice President Sales AMEA.
Despite the difficult situation in worldwide logistics, Heubach continues to focus on satisfying the needs of its customers with its highly differentiated products in time and in full. It will carefully monitor the logistic market and will withdraw the surcharge when situation returns to normal.
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