Sawyer Hakka MX 05

Apr 19, 2022

Supply Chain Pains, Continued

WTF is my bike, Part 3

Hel­lo,

And wel­come to our infre­quent­ly updat­ed series — Where’s my %^*ng bike”? As you know from read­ing part one and part two, we’ve been in the midst of our ver­sion of Lemo­ny Snicket’s A Series of Unfor­tu­nate Events. 

In addi­tion to a glob­al pan­dem­ic, there’s been an unprece­dent­ed spike in demand for out­door goods (which is good), as well as a soul crush­ing sup­ply chain issues (bad), and the ongo­ing ship­ping cri­sis (also very bad). The short­age of ship­ping con­tain­ers and ves­sels means that it’s tak­ing 3x as long for freight to arrive. 

Since March 2020, the price of ocean freight has surged by 650%. Our costs per con­tain­er has risen dra­mat­i­cal­ly, from $3,000 prepan­dem­ic to $22,500. We’ve been absorb­ing the cost, hop­ing that costs would sta­bi­lize but the oppo­site has occurred. In addi­tion to our ship­ping costs, over the last year, our aver­age costs for com­po­nents has risen by 18%. 

Begin­ning in May, Ibis will be adding a sep­a­rate con­tain­er fee sur­charge of $100 per bike and $50 per frame to help off­set the increased ship­ping costs. We’re mak­ing the con­tain­er fee sur­charge a sep­a­rate line item because we are hope­ful that ship­ping prices will return to normal. 

The con­tain­er fee sur­charge reflects a frac­tion of the actu­al costs we’re pay­ing. By mak­ing this a sep­a­rate item instead of build­ing it into the price, we’ll be able to more eas­i­ly reduce or elim­i­nate the sur­charge if the cost of ocean freight goes down.

As always, thank you for your under­stand­ing and support,

Hans, Tom, Scot, Roxy, Colin