EDMUND A. GRAY COMPANY

Update to Freight Policies

To Our Valued Customers:

The year 2022 has certainly started off more turbulent than any of us planned. The multitude of cost increases that have continued (labor, utilities, raw materials, finished goods, and transportation) combined with higher than expected spikes in inflation, and oil & gas prices have resulted in Edmund A. Gray Company needing to implement immediate changes to our freight policies.

The cost of shipping and delivering goods has increased at a disproportionately greater level than many of the other costs we all incur. Therefore, the following two changes have been scheduled for implementation as of Monday, March 14, 2022.

First, we are increasing the target level to receive FFA (Full Freight Allowed) to $1500 Net, for deliveries within California, Arizona, and Southern Nevada. Deliveries to other locations will adjust proportionately to this increase.
Our new FFA levels are at the low-end of, but in-line with, published ‘industry peer’ freight allowances.

Second, we are
temporarily adding a fuel surcharge of 2-1/2% of the value of the order, to prepaid shipments up to $10,000. Orders above that value will have reduced fuel surcharges.

Orders that do not meet FFA levels, will continue to be shipped as they have been.

These changes are intended to to be temporary, and we will continue to monitor market conditions and reevaluate them should anything change that could allow us to return to lower levels or eliminate the surcharges completely.

Again, these changes have been scheduled for implementation as of Monday, March 14, 2022.

Please contact your sales rep or our offices directly should you have any questions about these changes.

We appreciate your continued support of Edmund A. Gray Company, and value your business.

Thank you.