Outlining the effects of COVID-19 and other events (updated June '22)

Disruptions to supply, shipping and prices

As most customers will be aware, the worldwide supply situation for many chemicals and laboratory/industrial products continues to be thoroughly disrupted by the effects of the Covid virus, the war in Ukraine, and a range of other factors, including transport infrastructure limitations.

In general terms, our supplies of core products have continued to arrive from overseas, although sometimes there are considerable delays compared to historic lead times.

Unfortunately, we are quite pessimistic about both the supply and pricing situations as we move forward in 2022 and 2023. We had originally hoped to see improvements in the second half of 2022, but that now seems unlikely.

We are currently in a situation where our list prices have become very changeable. Customer discounts against list prices are being maintained to the maximum level possible, but they are lower than previously. We are experiencing very large price hikes from our core suppliers, and we have no choice but to pass a portion of these extra costs on to our customers.

In all these circumstances, we ask our customers to note:

1) Historic stock levels in New Zealand and Australia, and lead times for fresh imports, have substantially changed over the last few months. Please talk to us early about critical items for your business or institution. Many items are now taking six months or more to deliver.

2) If you send us an order with pricing that is no longer sustainable, we will let you know before proceeding with the order. We may suggest changes to the amount you are ordering, to help keep the price down.

June 2022