Price Increases from 1st December 2021
1 November 2021
To our valued customers
This year has seen unprecedented changes in the market and has brought with it significant increases in most elements needed to produce and supply packaging.
Incredible demand, production disruptions and shipping constraints have driven up costs of raw material to record highs.
Sea freight container rates continue to climb to record highs – Drewry’s composite World Container Index shows a 400% increase from October 2020 - driven in part by shipping companies moving capacity away from Australia to more profitable routes as well as the traditional seasonal increase causing further upward pricing pressure and lengthening shipping lead times.
Raw material prices have increased driven by production disruptions out of China due to power cuts and fluctuating foreign exchange rates with some industry KPI’s showing increases of 33 – 57% from October 2020.
These factors coupled with significant global demand mean we are facing an incredibly challenging market to operate in.
The Packaging Place has worked hard to mitigate the impact of these costs and to try to insulate you our customers from the impact of these cost pressures.
However, it is now clear that these market issues are not short-term but something that will be with us for some time.
We are now in a position where we can no longer continue to absorb these costs and reluctantly need to pass on some of the increases through our prices.
As we have such a varied product range including products from Italy and the UK the amount of the increases will vary by product. Price increases vary from 0% to 16.5% depending on their source.
The Packaging Place appreciates that this will not be welcome news, but it is necessary for us to continue to provide the high quality of product and service our customer’s value. Thank you for your continued support.