Temporary Raw‑Material & Freight Surcharge

Temporary Raw‑Material & Freight Surcharge

23rd March 2026  

Pak‑Line is implementing a temporary surcharge on selected products that rely on plastic resins, extrusion‑grade materials, and other key inputs used in film, tubing, and packaging production. This surcharge will take effect from Wednesday, 25 March 2026. 

This measure supports continuity of supply during a period of significant global market disruption. 

Why is this surcharge necessary? 

Over recent weeks, volatility in global petrochemical markets has led to sharp increases in the cos of polymer-based raw materials, freight, and associated energy inputs. 

• Cost of materials has risen as much as 50%
• Cost of freight has risen as much as 40% 

These increases sit well outside our normal pricing conditions and are affecting the production cost of packaging-related materials across the industry. Current indicators suggest that volatility may continue in the short term, and we will keep customers updated should further cost movements occur. 

How will the surcharge be applied? 

• The surcharge will be applied only to products that are directly affected by these cost pressures.
• Base product pricing will not be changing. 
• The surcharge will appear as a separate line item on quotes and invoicing for transparency. 
• We will be reviewing and adjusting the surcharge regularly as market conditions evolve. 

Supply Management 

Held Stock 

Pak-Line maintains held stock for a number of customers, where we manufacture and store customer-specific or branded products and replenish these items proactively to ensure uninterrupted supply. Customers drawing from their existing held stock will not be charged the temporary surcharge on those items.  

However, as these products are replenished at the new, higher raw-material and freight costs, the surcharge will apply to future stock manufactured under these conditions. This ensures that customers are charged only for cost increases that directly related to the production of their next batch of stock. 

Supply Limits 

Global supply of plastic resin for use in manufacturing has been significantly disrupted, and international suppliers are prioritising markets based on proximity. As New Zealand is geographically distant from major resin-producing regions, local availability is becoming increasingly constrained. This raises the likelihood supply limits may be a reality in the coming weeks. 

If limits do become necessary, Pak-Line will prioritise based on the following: 

• Essential services and critical production lines 
• Customers whose operations rely on uninterrupted packaging supply 
• Orders supported by accurate forecasting and forward planning 

In order to help us manage supply fairly and responsibly, we strongly encourage customers to: 

• Advise us if specific products are used in or being supplied for essential service applications 
• Identify product lines that are critical to their own production 
• Provide accurate forecasts and early order placement wherever possible 

Doing so will help us to allocate our own stock and manufacture responsibly, to hopefully maintain continuity for the industries and services that need it the most. 

Ongoing Updates 

We are monitoring global conditions and supply chains closely and will continue to update this page as new information becomes available. If further changes are required, we will communicate them promptly. 

We appreciate your understanding and continued support as we work through these industry‑wide challenges. 

If you have any questions or concerns, please contact us!