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PRICE INCREASE

To all of our loyal and valued Clients,

It truly distresses us to inform you that we have no alternative but to initiate a Price increase with immediate effect.

Have you have tried placing a shipping order to restock your inventory in the last six months? If you have, you probably went into a state of shock and disbelief when you saw how much it would cost… 

Freight costs have risen sharply because of higher oil prices, in part driven by the Russian invasion of the Ukraine, as well as the broadly synchronised reopening demand shock to global economies as Covid-19 eases.

There are also several Chinese ports, stretching from Shenzhen to Shanghai, that were recently shut down, reportedly owing to the re-emergence of Covid-19. This has added to the goods gridlock in the global economy. With prices estimated to remain at these levels until 2023, we are certainly facing huge challenges.

International shipping rates are at all-time highs. Along the China-EU shipping lane. Transporting a 40-foot steel container of cargo by sea from Shanghai to Europe now costs a whopping 547% higher than the seasonal average over the last five years.” Between Asia and North America, contract rates are coming in around 25% to 50% higher than a year ago… And between China and the UK, the cost of shipping has gone up by over 350% in the past year.

Meanwhile, in South Africa
– As you can see in the chart above, the US dollar rose more than R1 in a month. The USA. and other countries have mixed feelings as the US. dollar continues to soar. A strong dollar can lower import prices and inflationary pressure in the US., but countries other than the US. are facing growing difficulties due to increased borrowing costs, rising import prices, and increased financial market volatility.
 
Previously, I could have bought R1.52M for US$100,000, but now I have to pay R120K more (R1.64M) for US$100K. and still have to add 10~20% import duties and 15% VAT. 

Two years ago, ocean freight rates for a standard 40″ container from S. Korea or China were US$3 000 to transport via sea to South Africa. Today the cost is $14 000, an increase of more than 400%. Whilst we are continually striving to find the most cost-effective solutions, we are faced with the reality that these factors are simply beyond our control.

Furthermore, Aluminium prices have reached a 13-year high. The price of Aluminium surged to $3 000 recently, breaking a 13-year record – with a knock-on effect to a large number of the items we supply which have suffered under the impact of hiked prices in higher production costs.

EXION Corp remain dedicated to doing everything possible to remain competitive, whilst still supplying the quality products which you, our Customers, have come to rely on and trust.

Our new Price Lists will be made available shortly, and we remain at your service through these difficult time.

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