Update #9

This page provides a summary of how the Middle East conflict is affecting global supply chains, raw‑material availability, freight costs and product pricing, and what this means for your orders. It is intended to give you clear, timely information so you can plan ahead, understand any surcharges or price changes, and work with your EPL account manager to minimise disruption to your business. This page will be updated regularly as the situation evolves, with the dates of each update listed below.

Last updated

Monday 13th of April

Previously updated

Tuesday 7th April 2026

Friday 27th March 2026

Tuesday 24th March 2026

Thursday 19th March 2026

Tuesday 17th March 2026

Monday 16th March 2026

Wednesday 11th of March 2026

First published:

Tuesday 3rd of March 2026

At a Glance – Middle East Conflict Impact

  • Current global supply disruptions mean there is now a genuine shortage of key plastic raw materials, with 4 raw material plants closed and 7 raw material plants running at reduced capacity.
  • By placing forward orders, our customers give us the visibility we need to buy raw materials earlier and in a more disciplined way, which helps us minimise the size and frequency of price increases.
  • Unlike Covid‑19, which was largely driven by demand side disruptions, this is a supply led crisis with very different consequences.
  • Most of our imported raw materials move through Singapore, and rerouting plus congestion mean longer travel times (around 3 additional weeks) and higher international freight costs which is impacting us now.
  • Raw material prices are spiking, and carriers are applying additional conflict, war‑risk and fuel surcharges, which are increasing landed costs now which is impacting us now.
  • From 1 April 2026, we will introduce a separate Conflict Surcharge line on sales orders and invoices. Customers affected by this change were notified on 20 March 2026. If you have any questions, please contact us to discuss.
  • We already have significant forward orders in place with suppliers, but we cannot support sudden demand spikes; please place orders as early as possible to reduce the risk of delays or temporary stock‑outs.
  • This page will be updated regularly as the situation evolves, with update dates listed below.
Crude Oil Price 10am 13/04/2026

Thank you to our customers

Thank you to all customers who have already placed forward orders. Your early commitment has given us much better visibility over future demand, which in turn has helped us plan our material usage more effectively and avoid purchasing excessive volumes of raw material right at the peak of the market, even as some price increases have still been necessary to cover increase raw material, freight and surcharges.

We are still feeling the effects of significantly higher transport costs, and it will take some time before the full impact of these increases is completely understood and reflected in our pricing and planning.

Order processing delays amid strong demand

Thank you to everyone who has responded to our recent update and placed forward orders. The strong level of activity means there is currently a delay in processing some orders as we work through the volume and align production with available raw material.

Contact the Customer Service Team

How our Sales & Operations Planning (S&OP) process works

EPL’s Sales and Operations Planning (S&OP) process is the core mechanism used to balance customer demand, production capacity and raw‑material purchasing, so that supply is protected without over‑buying at the peak of the market.

At EPL, S&OP is a structured, cross‑functional process that brings together Sales, Operations, Supply Chain, Finance and Customer Service to review demand and supply on a regular cadence.

Each week, the team:

  • Reviews updated customer forward orders and quote pipeline to build a consolidated view of demand by product, customer and time period.
  • Compares this view with current finished‑goods inventory, work‑in‑progress and raw‑material stocks to identify any potential gaps or surpluses.
  • Agrees production plans and sequencing that best utilise available capacity while protecting critical customer requirements and export commitments.

This weekly rhythm allows EPL to respond to changes in customer demand, supply‑chain disruptions and market conditions, rather than relying on static annual or quarterly plans.

Taking a long‑term view on raw‑material purchasing

A key principle of EPL’s S&OP process is to avoid buying raw materials at the very peak of the price cycle wherever possible. Rather than reacting to short‑term spikes, the team:

  • Looks at price and supply trends over a multi‑month horizon.
  • Uses customer forward orders to phase purchases over time, smoothing exposure to extreme highs.
  • Balances the need to secure supply with the risk of locking in excessive high‑cost inventory.

By taking this longer‑term view, EPL aims to protect customers from the worst of the volatility while still ensuring that critical materials are on hand when needed.

If you would like to discuss your forward orders, alternative options, or any concerns about upcoming projects, please contact Brian, Sam, Melissa, Janine or Gareth. We are committed to working with you through this period and to minimising disruption to your business as much as we can.

Email the customer service team

Frequently Asked Questions about Forward Orders

  • Why is ordering early now essential?

    Placing forward orders gives us time to secure raw materials, book production slots and, where necessary, source alternative materials so we can minimise delays and reduce the risk of stock‑outs.

  • What are the benefits of placing forward orders?

    Forward orders improve your supply security by locking in demand earlier in our planning cycle, which helps us allocate limited materials fairly and avoid last‑minute shortages. They also give you better visibility of potential delays and allow us to work with you sooner on options if a particular material or product line is under pressure.

  • Do forecasts still help, and how are you using them?

    Forecasts are still helpful for longer‑term planning, but in the current volatile environment we are not ordering purely to forecast. Instead, we are using your actual forward orders as the primary trigger for purchasing and production, and then using forecasts in the background to balance the needs of all our customers as fairly as possible.

  • Why can’t you just order containers of extra stock?

    We can’t simply order containers of extra stock because global supply is already constrained, lead times are blowing out and many of our key materials are on allocation from suppliers.

    Buying too much stock while prices remain elevated would also lock in those higher costs for longer, meaning we would have to pass them on for an extended period rather than being able to adjust as markets stabilise.

    Our focus is on securing the right materials, in the right quantities, based on actual forward orders so we can balance supply fairly across all customers and reduce the chance of anyone running out completely.

Raw Material Supply

EPL has always operated a forward‑stocking model: A forward‑stocking model is a supply‑chain strategy where a manufacturer builds and holds inventory well in advance of actual customer demand, based on forecasts and current purchase orders.

That’s why EPL is asking for forward orders: the forward‑stocking model depends on early, transparent demand signals from customers.

Without a reliable forecast, we can’t determine how much raw material to order.

The escalating conflict in the Middle East has disrupted the global flow of resin and other polymer feed‑stocks.

  • Ocean transit has been rerouted around the Cape of Good Hope, adding 8 – 15 days to voyages that previously came through the Suez Canal.
  • Port congestion in key trans‑shipment hubs (Singapore, Colombo, Durban) is now 2‑3 weeks longer than normal.
  • Raw Material Suppliers have already halted new booking windows for Q3‑Q4 2026 resin orders and imposed strict allocation limits on existing customers,

Raw Material Costs

We are seeing very significant and volatile increases in raw‑material pricing, particularly when purchasing on the spot market. Depending on the specific raw material, prices have risen anywhere from around 10% to well over 100%, driven by higher feedstock costs, elevated freight rates and conflict‑related surcharges in key export regions. These pressures are affecting multiple polymer families globally, not just a single product line.

Polyethylene prices have recently reached their highest levels in four years, and representing a very sharp increase since the start of the year. This surge is being driven by conflict‑related disruption in the Middle East, which is tightening regional supply and pushing up global feedstock costs. Tension around key chokepoints such as the Strait of Hormuz has constrained exports from major producers in the Gulf states, while also affecting flows of crude oil and gas used as inputs for polyethylene production. The overall market for polyethylene and related petrochemicals remains significantly constrained and prices are reflecting that pressure.

Polyethylene pricing index 10am 13/04/2026


Raw Material Supply

While EPL’s operations are not directly impacted by any plant shutdowns, The impact of the conflict on the global petrochemical supply chain is real, with a reduction in global supply driven by attack damage, direct strikes on key facilities, and shutdowns caused by severe logistics disruption.

No single, reliable global count is being reported, and the number changes almost daily.

What can be said with confidence is:

  • Multiple large complexes are fully or largely shut due to direct damage or security risks (for example, some Middle East/Asia units), plus a growing list of individual plants in India, South Korea, and elsewhere that have temporarily halted lines.
  • Dozens more plants are on restricted supply or reduced runs across Asia and the Middle East, as naphtha, LPG and gas feedstocks are curtailed and governments or operators cut rates 5–20% or more at refineries and crackers.


FAQ regarding Raw Material

  • Where does EPL's raw material come from?

    Our raw materials are sourced from a diversified group of suppliers across Asia, the UK, North America and Australia. This global spread helps us manage risk and support continuity of supply over the long term.

  • Why are raw material prices increasing so sharply?

    Raw material costs for key polymers such as polyethylene and polyvinyl have risen very sharply since early 2026, driven by higher feedstock (oil and gas) prices, elevated freight rates and conflict‑related surcharges on major shipping routes. These pressures are being felt across multiple resin families globally, not just in a single product type, and are now clearly visible in international price indices and producer contract price increases.

  • How far ahead is EPL now ordering raw materials?

    Because of the extended lead times and current volatility, EPL is now placing raw‑material orders approximately six months to nine months ahead of the production window those materials will support. Material being ordered today is intended to cover customer demand later in 2026, so the cost increases currently flowing through feedstocks, freight and surcharges are already impacting raw material costs.

  • If they’re not in the conflict zone, why are there disruptions?

    Even though many polymer plants are located in Asia, the UK, America and Australia, their supply chains still depend on international shipping routes, ports and fuel markets that are being destabilised by the conflict. Most of these plants are powered by carbon‑ and oil‑based energy sources, so disruptions to global oil markets flow directly into their operating and transport costs, causing delays, reduced capacity and rerouting that all affect how reliably and quickly material can move.


  • How can customers help EPL manage raw material risk?

    We now need our customers’ help by placing forward orders so we can match raw material availability to expected demand. By having clear visibility of upcoming requirements, we can order enough material early without over‑buying at today’s elevated prices, helping to minimise any lag where high raw‑material costs would otherwise need to flow through into finished‑goods pricing.

Screenshot 2026 03 03 114902

Impact on Logistics

Shipping schedules are now experiencing concrete, measurable delays. Ocean carriers diverting around the Cape of Good Hope are adding roughly 8–15 extra sailing days to many routes, on top of normal transit times.

Major trans‑shipment hubs such as Singapore and Tanjung Pelepas are running at close to full yard capacity, with vessel berthing and container‑handling delays commonly extending by a further 5–7 days as rerouted Middle East cargo is staged and rescheduled.

NZ businesses are seeing more frequent schedule changes, vessel diversions and delayed transits as global liner services are re‑planned at short notice,

Frequently Asked Questions Regarding Freight Charges

  • What is the Current Fuel Adjustment Factor (FAF) for Team Global Express deliveries

    The fuel adjustment factor (FAF) effective from 13/04/2026 is 38.6%

  • Whats the Surcharge from DHL

    An Emergency Situation Fuel Surcharge of 8% will be applied to all domestic New Zealand transport movements, effective Monday, 16 March.

    This surcharge will be added to the existing base fuel surcharge currently applied to LCL and FCL shipments. For airfreight consignments, DHL Global has historically not applied a fuel surcharge. However, due to current global conditions impacting fuel costs, an 8% Fuel Surcharge will now be implemented. This surcharge will appear as a separate line item on your invoice.

  • DHL - Ocean Freight – Emergency Bunker Adjustment Factor & LCL Surcharges

    DHL's current EBAF rate and LCL surcharges per W/M are as follows

    Current as of 27/03/2026

  • DHL - Air Freight - Temporary Surcharges

    Emergency Capacity Surcharge (MEBA)

    • Amount varies depending on origin–destination lane
    • Applicable on lanes to/from Europe, Asia, and the Americas
    • Effective immediately, updated weekly (each Wednesday)

    Emergency Fuel Surcharge (MEFE)

    • Amount: EUR 0.40/kg (subject to change)
    • Applicable on lanes outbound from Europe
    • Effective immediately, updated weekly (each Wednesday)

  • What additional Emergency Fuel Surcharges is Röhlig applying on LCL shipments?

    LCL import and export shipments to and from New Zealand are now subject to an Emergency Fuel Surcharge of USD 10.00 per w/m (weight or measure) due to the Middle East conflict driving up fuel prices. This applies from 16 March for most trade lanes, with USA lanes following from 1 April, and is being reviewed regularly by carriers as conditions evolve.

  • Whats the latest update from Ravago

    Shipping lines are introducing an Emergency Conflict Surcharge (ECS) on containers moving through affected Middle East routes to cover higher risk and operating costs. Indicative charges are around USD 2,000 per 20’ container, USD 3,000 per 40’, and USD 4,000 for reefers or special equipment, and in some cases can apply even to cargo already in transit. This means freight costs may change at short notice, so customers should factor potential ECS adjustments into upcoming purchasing and delivery plans.

EPL conflict surcharge and price changes

EPL has now implemented a dedicated Conflict Surcharge line item on invoices to clearly show the extraordinary freight and raw‑material cost increases arising from the Middle East conflict. This surcharge is reviewed regularly and may change over time as carrier charges, insurance costs and input prices evolve, but it is specifically designed to give you visibility of these external impacts rather than burying them in base prices. Our intention is to remove the Conflict Surcharge as soon as the conflict stabilises, global shipping patterns normalise and raw‑material pricing returns to a more typical range. Where customer systems cannot accommodate a variable surcharge line, we will instead implement a price increase to contracted rates to achieve equivalent cost recovery during this period.

Frequently Asked Questions Regarding Pricing

  • Why is EPL introducing a Conflict Surcharge?

    The conflict in the Middle East has led carriers to impose new war-risk, emergency conflict and elevated risk surcharges, along with higher fuel-related charges, which are significantly increasing our inbound freight costs. At the same time, raw material prices are spiking as global supply tightens and producers respond to ongoing volatility. The Conflict Surcharge allows us to pass through these extraordinary, external freight and raw material cost increases in a transparent way, rather than permanently baking them into base prices.

  • What costs does the Conflict Surcharge cover?

    The surcharge is designed to reflect conflict-related freight increases (war-risk premiums, emergency conflict surcharges, route deviations and longer transit times) plus the associated impact on raw material pricing. It does not represent additional margin for EPL; it is a recovery mechanism for costs that are being imposed on us by shipping lines, airlines and upstream suppliers

  • How will the surcharge appear on my invoice?

    Where your system can accept it, the Conflict Surcharge will appear as a separate line item on your invoice so you have clear visibility of its value and movement over time. This approach means your underlying product pricing remains unchanged, and the conflict-related component is clearly identified.

  • Will the Conflict Surcharge change over time?

    Yes, the surcharge may be adjusted up or down as carrier charges, insurance premiums, fuel prices and raw material costs change in response to the conflict. We will review these inputs regularly and update the surcharge as required, aiming to reflect actual conditions rather than pre-emptive or speculative changes.

  • Is the Conflict Surcharge permanent?

    No. Our intention is to remove the Conflict Surcharge once the conflict stabilises, shipping patterns normalise and freight and raw material costs return to a more typical range. When those conditions are met and the extraordinary charges fall away, the surcharge will be discontinued

  • What if our ERP or procurement system cannot handle a variable surcharge line?

    For customers whose systems cannot accommodate a separate, variable surcharge, we will implement a price increase to your base rates that reflects the current level of conflict-related costs.

  • How will the Conflict Surcharge appear on my orders?

    The Conflict Surcharge will appear on both your Sales Order Acknowledgement and your invoice as a separate line item, clearly showing the percentage being applied. It is calculated on the product value excluding GST and then listed as its own dollar amount. Because our pricing is “delivered” and includes all freight in the product price, the surcharge is calculated as a percentage of that product price to reflect the additional conflict‑related cost embedded in getting the goods to you.

    Example of Conflict Surchage
    This is how the Conflict Surcharge will be appear of Sales Order Acknowledgements and invoices

  • When will the Conflict Surcharge start?

    The Conflict Surcharge will apply to all eligible orders and invoices dated from 1 April onward. Any supply on or after 1 April will include this surcharge, in line with the percentage and conditions set out in your Sales Order Acknowledgement.

  • How much is the Current Conflict Surcharge?

    As of 1st of April 2026 the Conflict Surcharge is 9.5%

    This rate will be reviewed regularly and may go up or down as freight, fuel and raw material costs change. The current percentage will always be shown on your Sales Order Acknowledgement.