Re: COVID-19 Logistics Impact & Forecasting Considerations

Dear Valued Customer:

I write this letter to notify you of the major logistical impact we are seeing from the international economic fall-out due to COVID-19. Space on ocean vessels (and air cargo) is incredibly limited. And consequently, ocean freight rates to North America, specifically from the Far East, but also Europe, are increasing. The logistics firms we work with are seeing vessel bookings as far out as two to three weeks after the cargo ready date. This is unusual and only seen when there are substantial vessel shortages.

Because of this, we ask that our customers do their absolute best to help us forecast for their inventory needs. We are already seeing that attempting to rush product via boat or air is a tremendous challenge. Consequently, I urge you to promptly contact your respective ChemSpec sales representative with any information you think can help us better forecast and maintain safety stock for you.

As always, we appreciate your business and look forward to navigating these challenging times and working more closely with you in the future.

Sincerely,

Christopher J. Wagner, J.D.

C.O.O. & Law Director