An Update on Supply, Logistics, and Pricing at WF Plastic

Introduction

As many of you are aware, recent military actions in the Middle East have significantly impacted global shipping routes and energy markets. For the food service industry here in Australia, this translates to two immediate challenges: a spike in the cost of oil-based raw materials (plastics) and a rapid escalation in fuel and freight surcharges.

At WF Plastic, our priority has always been continuity of supply. We know that if you run out of food packaging, your business stops. To ensure we keep our shelves full and our delivery vans on the road, we are making the following transparent adjustments:

Real-Time Pricing Adjustments

The cost of resin (the raw material for plastic food packaging) is currently fluctuating daily. To avoid massive, "blanket" price hikes, we are moving to a more frequent, item-by-item pricing model. This allows us to only increase prices where absolutely necessary, rather than across our entire 2,500-product range.

A Temporary Pause on Offshore Custom Print Projects

For many of our long-term partners, custom-branded packaging is a cornerstone of their brand identity. Our standard policy has always been to provide fixed pricing and absorb minor market fluctuations to ensure your budgeting remains simple.

However, the current volatility in the Middle East has made the offshore manufacturing and international shipping of custom lines highly unpredictable. At this time, overseas manufacturers are unable to provide guaranteed quotes on raw materials (resin) or confirm shipping availability.

To protect our clients from the risk of significant, mid-production price escalations, WF Plastic is temporarily pausing new offshore custom print orders. We are monitoring the market daily. Our goal is to resume these services as soon as global supply chains stabilise and we can once again "lock in" the reliable pricing you expect from us. In the meantime, our team is available to discuss local alternative options or help you manage your existing unbranded inventory to ensure you remain stocked during this period.

Optimising Our Local Delivery Fleet

To keep our local van runs sustainable despite record fuel prices, we have adjusted our Free Delivery Threshold to $500 for the local area.

• Why? This helps us consolidate orders and reduce the number of "empty miles" our vans travel, ensuring we can keep a dedicated fleet available for your most critical orders.
• Smaller Orders: For orders under $500, a flat rate of $60 applies for deliveries made by our fleet. However, we encourage you to select Direct Freight Express at checkout for these smaller orders, as they invariably offer a more cost-effective "per-box" rate for low-volume deliveries.
• Click & Collect: Pickup from our warehouses in Warwick Farm is a great way to grab your order quickly PLUS save on potential delivery fees.

Delivery Summary Table

Our Usual Low Priced Courier Delivery Remains Unchanged

Our Commitment to You

We aren't just passing on costs; we are absorbing what we can. We are currently:

• Hedging Inventory: We are pre-buying larger volumes to "lock in" current resin prices for as long as possible.
• Route Optimisation: Using new technology to ensure our drivers are taking the most fuel-efficient paths to your door.

We value your partnership and thank you for your understanding as we navigate these global headwinds together. If you have a specific upcoming event, please reach out to our team early so we can help you with stock and pricing in advance.