February 7, 2022
Intended Audience:
All Global Rockwell Automation Distributors
Use:
To be shared with customers as needed
Regarding:
Shipping and Handling Surcharge as of March 6, 2022
Distributor partners,
Global headlines continue to highlight the significant cost inflation of materials and transportation. The unforeseeable inflationary increases continue to accelerate for raw materials, components, and logistics. Rockwell Automation’s procurement and operations teams have worked to absorb much of these additional costs, but given continued cost escalation, this approach is not sustainable. A majority of production and logistics costs rose twice as much in the last year as they had over the past decade. Now, Rockwell Automation must take action to offset a portion of these significantly higher costs.
Shipping & Handling Surcharge
To address the unexpected and rapid increase in inflationary freight and transportation costs, effective March 6, 2022, Rockwell Automation will add a Shipping and Handling surcharge of 1.9% of the net invoice amount, relative to all shipments where applicable. This action is in addition to an incremental List Price increase that will go into effect on that same day.
- This incremental surcharge will be added to both non-consolidated and consolidated shipments.
- This surcharge applies to all shipments shipped on or after March 6, 2022, including any backlog shipments.
- This surcharge is for standard and non-standard manufactured products. Software and services are not included.
Rockwell Automation is taking the above stated measures in reaction to the current market conditions and will continue to re-evaluate the economic situation quarterly.
Please know that we value our continued relationship as we navigate the challenging marketplace together.
Thank you,
Rockwell Automation Leadership