A&R Logistics, a North American supply chain services companies, recently announced a 10% rate increase on all non-contract rates, and an increase in rates for all ancillary services.
“We have witnessed unprecedented disruptions in the supply chain for the chemical industry during 2020, including the COVID-19 pandemic,” said Mark Holden, A&R’s CEO. “We have taken several steps to minimize the impact on the company and our customers, including significant reductions in discretionary spending, salary reductions, capital spending, and cost savings initiatives that have included personnel reductions.”
The A&R CEO added that as the company and its customers attempt to bounce back from pandemic, areas of its business remain stressed.
“We are seeing severe capacity shortages despite running our fleet at 110%, the industry’s chronic driver shortage has become increasingly acute, and we are seeing cost pressure across many other areas of our business,” Holden said. “In order to most effectively position our business to meet the changing and complex requirements of our customers, we have implemented a 10% rate increase on non-contract rates and we will also increase the price on ancillary services, as needed.”