Tuesday 3rd of March 2026
A heads up from EPL
As you will have seen in the news, the situation in the Middle East is moving quickly and creating new uncertainties for global trade and energy. While industry and government voices are saying it is “too soon to know” the full trade impact, we are already seeing clear signs that supply chains are tightening and costs are rising. I wanted to share where things stand and how we can work together to reduce the impact on your business.
Why we’re asking for early orders
Supply chain lead times for our raw materials are already increasing. The conflict in and around Iran is disrupting key shipping routes and oil flows, which in turn affects petrochemical feedstocks used to make PE, PP and other polymers. This is flowing through into longer transit times, higher freight costs and greater volatility in resin supply and pricing.
Most of our imported raw materials move through Singapore, one of the world’s largest and most capable container hubs. Singapore is adding capacity, reopening older berths and bringing new Tuas terminals online, which helps. However, forced rerouting of vessels around the Cape of Good Hope and away from higher‑risk areas is absorbing a significant amount of global container capacity and adding 1–3+ weeks to some legs. We are also seeing periodic congestion spikes as off‑schedule vessels arrive in bunches.
Because of this, we strongly encourage you to place forward orders as early as possible. Early visibility of your demand (orders and forecasts) gives us a much better chance to secure the raw materials, production slots and container space needed to keep your supply running smoothly. Please note we only issue invoices once your goods have been fully manufactured and are ready to leave our site. This means you are not charged at the time of ordering, but only when production is complete.
What we’re doing at EPL
We are actively increasing our raw material stocks to provide a larger buffer against these disruptions. This is already underway, but it will take time to build additional inventory given the longer and more volatile lead times described above.
Alongside this, we are working closely with our suppliers, freight partners and carriers to understand schedule changes, manage congestion risk at key hubs like Singapore, and prioritise shipments for critical customer requirements wherever we can.
Brian, Sam, Melissa, Janine and I will keep you up to date as the situation evolves and will work directly with you to try to lessen the impact on your business.
Pricing and surcharges
It seems inevitable that the cost of material is going to spike; unfortunately, what we do not yet know is the scale or duration of these increases. Rising oil and gas prices are lifting feedstock costs (such as naphtha and ethane), which flow directly into the polymers we all rely on. Analysts are already signaling the potential for significant feedstock cost increases in a sustained disruption scenario.
At the same time, we are already receiving notifications from carriers about new surcharges and cost uplifts that will flow through the supply chain. These include, but are not limited to:
- War Risk Surcharge
Carriers and insurers may implement or adjust war risk premiums on cargo in transit, as well as on current and new bookings, in response to elevated regional security risks. - Emergency Surcharge (ES)
At least one major carrier has already announced an Emergency Surcharge (ES), with others likely to follow depending on operational impacts. - Bunker Adjustment Factor (BAF)
With the closure or avoidance of key straits, many vessels are rerouting via significantly longer pathways such as the Cape of Good Hope. These extended voyages substantially increase fuel consumption and operating time, and carriers are signalling potential adjustments to the BAF to cover higher bunker costs. Such adjustments are consistent with industry practice and may be introduced alongside other emergency surcharge measures as conditions evolve.
We will do everything we can to manage and smooth these increases, but you should expect that there will be upward pressure on prices over the coming months. As soon as we have more clarity on the magnitude and timing of specific increases, we will share that with you.
Working together
Our commitment is to maintain continuity of supply and to communicate openly as conditions change. The single most helpful thing you can do to support this is to give us as much early visibility as possible on your forward demand so that we can plan stock, production and logistics on your behalf.
If you would like to talk through your forward orders, alternative options, or any concerns you have about upcoming projects, please reach out to Brian, Sam, Melissa, Janine or myself. We are here to work with you through this period and to minimise disruption to your business as much as we can.
Contact the Sales Team