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Shipping costs force Spicers to raise prices 3%-8%

Spicers Australia says “massive” price increases on the hiring and shipping of containers has forced the company to raise prices by 3% on all its products in the Commercial Print, Digital, Narrow Web & Industrial Packaging markets, and by about 8% for Rigid products in its Sign & Display business.


“In recent months due to the effects of COVID-19 on the global shipping industry, papermills worldwide have received massive price increases on the hiring and shipping of containers to their global customer base,” Dale O'Neill, general manager - Print and Packaging, Spicers Australia, told customers via email.

“Unfortunately, the Australian market has been hit particularly hard by these increases, and paper mills have had no choice but to accept the increases, which in turn are passed onto their customers.

“On a positive note over the last few months we have seen and continue to experience a significantly higher Australian dollar against the USA currency, and this has saved Spicers from implementing a considerably higher price increase into the market. Unfortunately though it has not been enough to negate the full impact of the shipping & mill increases.”

As of Monday March 1st, all products sold by Spicers into the Commercial Print, Digital, Narrow Web & Industrial Packaging segments will increase by 3%. “This increase is a necessity for our business and has been averaged out across our whole product portfolio, including locally manufactured material,” O'Neill said.

Most products sold by Spicers into the Sign & Display market will also increase in price. The increase will be: Rigid products @ 8%; all other products @ 3%.

“Although we expect the shipping industry to return to normal at some point during 2021, the pandemic is still causing havoc across the globe and the effect on shipping lines is continuous. We are hopeful not to see further increases due to the pandemic, but I cannot rule it out at this stage, and we may have to re-visit this mid-year.”

Spicers says it will continue to monitor the situation, as well as work with global supply partners to seek out best options to keep its customers competitive.

“Your local representative will be in contact shortly with more information if needed, and to supply you with an updated price book,” said O’Neill. “We thank you for your understanding and continued support of Spicers.”