Kemira Pulp & Paper Segment Announces Price Hike to Offset Increasing Freight costs in North America
Carriers have raised freight rates to offset increasing costs due to the new 'Electronic Logging Device and Hours of Service Rule' and a well-documented driver shortage.
May 8, 2018 - Kemira announced that it will implement a $0.02/pound price adjustment for all Process & Functional Chemicals sold on a delivered basis to pulp and paper customers in North America, effective June 1.
The price adjustment will apply to all customers whose price has not been previously adjusted for freight during 2018 and is independent of any future price adjustments based on raw material and manufacturing cost changes, Kemira added.
Kemira said the price hike is necessary to offset rapid and unprecedented increases in freight costs.
“Transportation costs have risen significantly and continue to rise. Carriers have raised freight rates to offset increasing costs due to the new 'Electronic Logging Device and Hours of Service Rule' and a well-documented driver shortage. Likewise, our raw material suppliers are implementing price increases and/or freight surcharges to offset these same market forces," explained Billy Ford, Senior Vice President, Pulp & Paper Americas.
"While Kemira has taken every possible mitigating step, we are unfortunately no longer able to absorb these increased costs."
Kemira is a global chemicals company serving customers in water-intensive industries. The company provides expertise, application know-how and chemicals that improve customers' product quality, process and resource efficiency. To learn more about Kemira, please visit www.kemira.com.