PPG Industries and Pilkington North America will begin implementing a $100
diesel fuel charge next week. Guardian has also sent out a letter indicating that
it is raising prices for its annealed, tempered and laminated glass by 3 percent
effective May 16. At this time, AFG Industries and Cardinal Glass have not announced
any surcharges or price increases.
Pittsburgh-based PPG kicked off the latest round of surcharges when it issued
a letter to customers on April 7 announcing its plans.
The letter stated: "Rising diesel fuel prices have dramatically increased
the cost of transporting products for every industry, including flat glass producers
like PPG. This is nothing new. In fact, PPG has been paying transportation fuel
surcharges to its freight carriers for almost ten years. The diesel fuel surcharge
we pay to the trucking industry is indexed to the U.S. Department of Energy's
Diesel Fuel Index and has increased 55 percent in the past two and a half years."
Toledo-based Pilkington will begin implementing its surcharge on May 16. The
company also cites the rising prices it is paying. "This action is being
taken to partially, and we stress partially, recover some of the additional fuel
costs which are being passed on to us by our freight and hauling carriers,"
a company spokesperson told USGNN.
Guardian indicated that it was taking its actions for the same reasons the
other manufacturers have cited, but was making a price hike rather than a surcharge.
According to a senior official at one of the primary glass manufacturers, all
the glass manufacturers are doing is passing along the costs which the trucking
companies are imposing on them, which their customers (distributors and fabricators)
are then passing along to their customers. "In the glass industry, the primary
glass manufacturer pays for delivery," he points out. "Since this has
been going on for several years, and all the parties understand about the rising
fuel costs, the system has been accepted," he explains. "But anyone
would have to be careful to deviate from what has become accepted, because then
the question of price gouging would come into the picture."