Sonoco to Implement Energy Surcharge for Shipments
June 30, 2008 - Sonoco said that it will implement an energy surcharge for all of its tube and core products shipped in the United States and Canada.
The surcharge will be added as a separate line item to all shipments on or after July 14, 2008 and will be based on the shipping distance between Sonoco’s converting plants and the customer’s location.
The surcharge will apply to all customers who are not currently paying energy surcharges or who do not have contracted energy-related provisions, Sonoco added.
“The unprecedented escalation in the cost of diesel fuel and natural gas has significantly increased our energy costs beyond what we are able to continue to absorb,” said John Colyer, Sonoco's vice president, IPD North America. “We will continue to monitor our diesel fuel, natural gas prices and freight costs and make appropriate adjustments to reflect changes in our costs.”