September 13, 2017
Hurricanes can be devastating to those living in the pathway of destruction. For those fortunate enough to live outside of the areas hit hardest by the hurricanes, you will still be faced with the economic impact.
Everyone is already talking about surging prices at the pump due to factors including the oil refinery shutdowns in Texas as well as people fueling up to evacuate or preparing for the aftermath of the hurricane(s).
Another impact The Gulf Coast is home to Ethylene production, which is a flammable gas reported as “arguably the most important petrochemical on the planet,” according to the Independent.co.uk. Ethylene is used to produce a vast array of essential items including plastics and PVC pipes.
Also, the Port of Houston is a highly important trading location for materials such as steel and other metals. KeyBanc analyst Philip Gibbs reports that Houston receives between 30% and 35% of all U.S. steel imports.
What does that mean for you? Commodity prices are likely to go up and up and up. Now it is even more important than ever to include a commodity clause in your contracts.
The Enlightenment Companies already includes a commodity exclusion in our proposals as shown below. For more information on commodity clauses, please call us at (440)-793-6000.
NOTE: On the topic of pricing, if you come across price gouging during this time of distress, please report it to the price Gouging Hotline at http://myfloridalegal.com./