Imerys Performance Minerals Announces Temporary Shipping Surcharge In Response To Global Container Shortages

PARIS, Feb. 22, 2021 /PRNewswire/ -- Imerys Performance Minerals announces today a temporary surcharge on container and bulk vessel shipments, effective with some shipments in February.

Following a significant downturn in shipping demand in 2020, due to the impact of Covid on retail sales, demand for container shipping came back in earnest toward the end of 2020, as retailers began restocking for 2021. Soren Skou, CEO of Maersk, the world's largest container shipping firm, explained in a CNBC interview on February 9, 2020, that shipping firms are locked in a "significant bottleneck" as resurgent global demand is stretching capacity and driving up freight rates. With a strong rebound in cargo volumes and slowing fleet growth, dry bulk sea freight has also been rallying strongly since September 2020, a trend that is set to extend well in 2021.

According to Joost van Moorsel, Imerys Group Transportation Director, "Current shipping constraints are resulting in significant cost escalation. We are doing everything we can to leverage our global presence and supply chain network to avoid supply disruptions but, unfortunately, that comes at a cost."

To maximize access to the shipping space needed and as part of an overall strategy to help prevent supply chain disruptions to our global customers, a temporary surcharge on containers shipped from Imerys manufacturing plants to most locations outside the country of origin will be added. This temporary surcharge represents only a small portion of additional expenditures Imerys is incurring to meet current customer requirements. Potential dry bulk shipping and road freight surcharges will be managed on an as-needed and country-by-country basis.

"Rest assured we are working hard to avoid any supply disruptions," van Moorsel continued. "This measure is temporary. We plan to lift the surcharge as soon as the global container shortage is resolved, returning shipping demand and costs to normal. We will continue to monitor this situation and will provide updates as we work to minimize any negative effects to our customers."

For information on Imerys Performance Minerals, visit www.imerys-performance-minerals.com

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SOURCE Imerys Performance Minerals