Suppliers Attribute 7% to 18% Spike Across Products to Market Stress, Soaring Costs
In an unprecedented and “unique” year, suppliers have announced their fourth price increase since January 2021 on finished lubricants, greases, chemicals, coolants, DEF and antifreezes – with hikes ranging from 7% to 18% depending on the product.
The increases, which go into effect beginning July 12 and average about 12%, have been attributed to continued market stress and soaring costs for everything raw materials to additives, packaging, transportation, and logistics.
Specific to DEF, according to Jobbers World, there’s also the issue of short supply and five major urea producers that have begun 4- to 8-week systematic shutdowns “The shutdowns create higher logistics costs for distributors as DEF is shipped from secondary supply points. … Transportation costs and packaging increases continue for drums, totes, jugs and pallets.”
“This is certainly a unique year in more than one way, and in our industry, as it relates to the costs businesses have to bear in response to multiple stressors in the market,” said SCL Vice President of Customer Solutions Dan Dziwanowski. “One important thing to note is that in addition to SCL doing everything we can to help our customers minimize the impact of these increases using different tools and expertise, suppliers have shared they are also doing what they can for customers. But, even with those concessions, there will inevitably be a hit to customers.”
Since December 2020, the price of core types and grades of base oils used to blend motor oils has increased well over $2 per gallon, according to Jobbers World. Experts attribute that increase to a myriad of conditions – including supply chain disruptions due to the COVID-19 pandemic, a surge in consumer purchases, port conditions, and continued increases in fuel, to name a few.
To take advantage of current pricing, place orders as soon as possible as availability will be determined by demand.
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In a wide range of automotive, industrial and commercial sectors, SCL remains steadfast on its commitment to product and industry knowledge, performance satisfaction and superior logistics. We protect and optimize the machines that keep our country moving. For more information on how we help can help with services including bulk purchasing or managing inventory, contact an SCL expert today.