Dear Valued Partners,
I am writing to inform you of ongoing developments and DEMDACO’s efforts regarding ocean freight challenges and delays. Since January, U.S. imports from overseas are up approximately 30% and port workers are hindered handling these increased volumes in a sustained COVID environment. This is currently causing inventory delays ranging from ten to twenty days. Additional logistical challenges we are seeing in the market range from port congestion, container shortages, worker shortages, vessel capacity, and trucking and rail delays. These factors have led to substantial container cost increases. In most cases the increases are double to triple the costs they were six months ago.
We have been working hard to mitigate these additional cost pressures in the best interests of our retail partners. To date, DEMDACO has absorbed all additional costs in an effort to help maintain your retail pricing in the marketplace. Unfortunately, these cost pressures show no signs of quickly abating.
After careful consideration, we will be raising prices due to the increased ocean freight costs we have been experiencing. As such, we must adjust prices on future, and existing, orders that ship on or after March 1st, 2021. These orders will incur a 2.0% price increase for both Willow Tree® and Portfolio products.
We are hopeful that inventory and logistics pressures return to normal later this year. However, the current situation is dynamic and ongoing. Our Supply Chain team is working diligently, and we will continue to communicate with our partners if the situation changes.
2020 was a challenging year for everyone on a number of different levels. We want to thank you not just for your partnership last year, but also the past, present and future.
Please contact your Territory Manager or our Customer Care team (1.888.336.3226) with any questions.
Lance Hart
President | DEMDACO
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