(Updated March 30, 2020)
We continue to monitor the latest updates about the global COVID-19 outbreak and are taking actions to safeguard the health of our employees and preserve our ability to operate. We have identified areas which we consider critical to operate and have implemented operational continuity plans within our teams to ensure we have sufficient resources to keep plants running safely and products shipped to our customers.
We are working with governmental authorities as more shelters in place for areas where we have operations are implemented. Many of Eastman's products have been deemed essential, therefore most of our operations around the world continue to produce the products our customers rely on. We will adhere to strict requirements and will continue to monitor the situation to ensure our employees are safe and our operations are being run safely.
Our pandemic team will continue to guide appropriate measures which should be taken during this event and take actions necessary to ensure our operations continue running.
Supply Chain and Customer Impacts:
The entire global supply chain has been impacted due to the COVID-19 outbreak, which has led to disruption in marine container shipping services. To allow adequate booking time in the current environment, we are asking all customers to provide an additional lead time for non-marine based shipments and 2-4 weeks lead time on all marine orders. Current disruption estimates could last for several months and are working to meet customer requested dates, but there will likely be some delivery delays. We are working to assure future vessel space allocations and using track and trace of shipments in transit to provide customers with updated estimated arrival times. While we have seen some truck delays at international borders, shipments are still moving through these points.
We understand that many of our customers are facing a tremendous amount of uncertainty. As a result, we will be temporarily waiving all charges for rush orders until May 1st and will make every effort to process them where we have the inventory and resources to do so.
As part of our efforts to align production and demand and ensure your supply is not disrupted by a last-minute diversion of inventories, transportation equipment, or logistics resources, we are implementing a 25% surcharge for order cancellations or requested changes inside of 5 business days of shipment. Your Eastman Sales and Customer Service team will be in direct contact with you regarding these changes, which are effective April 1st.
Please read this customer letter for full information.
We realize this situation remains very dynamic. We will continue to provide updates as we learn more. We are confident in our preparation and contingency planning for situations such as this. We remain committed to providing the superior service and support that our customers have come to expect of our company throughout this situation.