INTRODUCTION
Covid 19 is starting to have a major impact on all businesses as staff are either off sick or waiting for tests as close contacts. Especially in the hospitality industry, I regularly come across venues temporarily closed due to a lack of staff.... Read full newsletter here
Freight Delays, Price Increase
Freight delays are now a fact as transit time slips out with an extra 2-3 days added onto most NZ domestic routes. Regional routes can expect additional delays. Fuel prices continue to rise due to increases in international oil prices as a result of the supply restrictions maintained by the OPEC+ grouping nations. In Auckland yesterday we saw 98 octane Petrol for $3.32/litre. Due to the pandemic, these oil-producing countries continue with slow production resulting in the rise in oil and gas prices, and further exacerbated by the Russian invasion of Ukraine. Mainfreight notification regarding prices is as follows, and movements in price have almost been on a weekly basis.
Mainfreight Fuel Adjustment Factor
Fuel Related Price Increase
We wish to advise that from Monday 28 February 2022 the fuel adjustment factor will increase by 0.80 percentage points.
This increase brings us into the 190–195 cents per litre category. For the majority of our customers, the new adjustment factor will be 13.15%.
The following table represents the applicable price adjustment by reference to the average pump price which we calculate from the website www.pricewatch.co.nz. If the band changes for more than seven days the price is adjusted up or down as applicable.
Increment Categories Fuel & RUC Adjustment
175>180 10.75%
180>185 11.55%
185>190 12.35%
190>195 13.15%
195>200 13.95%
200>205 14.75%
This increase is in accordance with our pricing arrangement with you and reflects the transparency that we have applied to fluctuating fuel prices.
Product News
In General terms, stock levels are looking good for the future.
Green Cedar is flowing in again after months of just a trickle. Therefore, the second half of this year looks bright. But prices remain at record highs.
Weathertex: Stocks are good as the plant in Australia continues to increase production capacity for us.
Plywood is flowing in as we secure more supply lines, treated ply remains an issue and local plants cannot cope with demand.
Kwila decking stocks are good with stock ready for next-day delivery. Machining lead times remain quite long with approx. 8-10 weeks turnaround, allow additional 2 weeks if coatings are needed. Click to see stocklists