A recent email to customers from Woodard and Mallin outlines an increase in surcharges effective on orders received on or after Jan. 1, 2022.
“After researching expected, near-term ocean freight rates and their cost impact on our products, Woodard and Mallin will increase our surcharge from 5% to 10% effective with orders received on or after January 1, 2022,” the email reads. “If and/or when ocean freight costs abate, Woodard and Mallin will correspondingly reduce our surcharge percentages.”
Since Woodard and Mallin imposed a 5% surcharge effective September 1, 2021, ocean freight costs continue to soar, the company said. Container freight rates from China/East Asia to the West Coast increased from approximately $4,000 in December 2020 to approximately $19,000 in December 2021.
“Woodard and Mallin cannot continue absorbing these historically high ocean freight container costs even if we tried,” the email says. “Recent container demurrage/delay surcharges put in place at the LA/LB entry port by several ocean freight carriers have proven to be our final straw. While we truly want to express our sincere appreciation for your continued support, Woodard and Mallin must adapt to this radically changing environment.”
Also, Woodard and Mallin will not be accepting any orders requesting a 2023 ship date. “We face significant challenges today maintain competitive pricing in an extremely volatile environment,” the company said. “We have no clue as to what tomorrow, let alone a year from tomorrow, might bring. Woodard and Mallin will notify our customers when we can accept those orders along with related pricing.”
To offset a portion of the surcharge increase, Woodard and Mallin are permanently reducing their MAP policy maximum discount from 35% to 30% effective January 1, 2022.
The companies could not be reached by Casual News Now for comments.
