The robust demand for commodities, electronics, semiconductors, and logistics continues to impact global markets. The team at Honeywell Fire remains committed and is working tirelessly to secure materials and minimize the disruptions across our supply chains. As communicated earlier this quarter, lead times remain extended and demand continues to outpace supply. Based on information known to date, these factors are expected to persist through the remainder of 2021 and at least into 2022. As a result, cost inflation continues to escalate beyond previously anticipated levels.
Please be advised that Honeywell Fire will be adding an incremental 350 basis points (+3.5%) to the current 2.5% inflation surcharge and the charge for freight shipping will increase 100 bps, effective Thursday, October 7, 2021. All orders entered on or after October 7, 2021 will invoice with a total 6.0% inflation surcharge and the new freight shipping charge.
We are continuing to closely monitor market inflation and will send separate communications if there are any necessary adjustments to the inflation surcharge including any potential opportunities for relief.
If you want more information about supply chain disruption and increased equipment costs, reach out to your Absco Solutions account executive, or contact firstname.lastname@example.org.