COMPANY STATEMENT - Material Availability and Pricing

14 May 2021

MacLellan Rubber wishes to advise its customers of a continuing situation which threatens to further disrupt availability and pricing for the foreseeable future.

MacLellan Rubber currently has strong stocks of most items but due to shortages elsewhere in the marketplace, these are being sold more quickly than usual.

We have strong forward order levels but are having to fight for every container booking we can get – we currently have multiple containers en-route for delivery in June and have secured bookings for multiple containers arriving in July.

We expect the current situation with Shipping Availability and Inflated Pricing to last until at least after Chinese New Year 2022, consequently we would recommend all Customers to Pre-Order as much as possible to ensure availability of supply.

Container Shipping Rates are remaining at the high levels recently reported and we are led to believe that these may increase further before they fall back to anywhere near 2020 pricing. Whist we have no current plans to place any further price increases and/or surcharges, we are unable to rule these out.

MacLellans has recently invested in software that allows every roll in its supply chain to be allocated to a Customers Order, this has and is proving vital in our ability to ensure fairness of supply on a first come first served basis and we would encourage all of our customers to book orders early, as whilst our Inward Material schedule remains strong the percentage of free materials upon arrival has reduced significantly.

This provides a good summary of the current situation.