Dear Valued Customer;

On April 1, 2021 CMI implemented the below previously announced Freight Force Majeure policy. While we did not mandate the signing of the order acknowledgments, every order received since late December 2020 has had this printed on it.

During the unprecedented ocean freight run up 4th quarter of 2020 and early 2021 CMI lived up to its commitments and obligations absorbing all freight increases in most cases $2,000 to $3,000 a container. Most of those are the containers our customers are now receiving, costing us $100’s of thousands of dollars in excess freight charges per month. That was obviously not sustainable.

After conferring with our customers, we had developed the process below. Based off the then current highest ocean freight rates ever, we still built a 5% hedge factor into the process before we would seek any recovery. Only if rates at time of booking freight exceeded that amount by more than that 5% would we seek excess freight relief.

In this scenario if a load was sold off the current $7,000 rate and it now cost more than $7,350, only on any amount in excess of the 5% will we seek recovery. If this rate comes in at $7,900, the differential of $550 will be billed as part of your cost at $.32 a box.

Since the Suez Canal issues the global container freight situation has quickly unraveled, in some cases with no containers available and in some with rates now exceeding $10,000 to secure space.

As the largest direct importer of coil roofing nails in the market we take our role seriously. This Freight Recovery will allow us to continue timely and prompt shipment of your material which is the primary goal.

Some loads will have no excess and other will have substantial amounts. It will always be transparent and with the current run up in steel and all components it will still be extremely competitive.

Please call us with any questions.

Effective: December 28, 2020
We have implemented an Ocean Freight Force Majeure Policy due to the continued volatility of the freight market. If ocean freight rises more than 5% after final pricing is confirmed we will be charging the excess as a freight surcharge on the order. Please do not sign this order acknowledgment, with the noted conditions above, unless you intend to honor this agreement. We are allocating valuable production capacity to support your business and are taking someone else’s potential order.

Accepting this acknowledgement is your understanding that additional surcharges may apply.


Continental Materials, Inc. (CMI) is a national supplier of roofing system component materials and known for BUR (built-up roofing) asphalt with “No Smell”™ odor eliminating technology and its WeatherSeal™ protective packaging, All-Weather™ asphalt felts and coated organic rolls, CMI All-Weather™ modified bitumen rolls, SureGrip™ construction fasteners and roofing nails, Continental’s eco-friendly high density fiberboard roof insulation board and a premium line of SecureGrip™ synthetic roof underlayment products that are sold and used widely throughout the country. CMI has provided value added products and superior service to the roofing industry since 1958.

For more information on CMI products, call (215) 884-4930, visit www.continentalmaterials.com or contact your local CMI Sales Representative.

Continental Materials