Widespread Cardboard Shortages Continue to Pose Market Challenges
on February 23, 2021
It likely comes as no surprise that the past 12 months’ surge in e-commerce markets and home delivery services has left the demand for cardboard packaging at an all-time high.
Access to adequate packaging for manufacturers and retailers, however, has become an increasingly growing problem in recent months, as sourcing issues caused by a 20% reduction in recycled paper at the tail end of 2020 continue to cause ever-mounting price increases.
Problems in servicing the exceptional demand for cardboard are compounded by enduring staff shortages of up to 40% in waste and recycling services (source), rendering production capacities at paper mills frustratingly low.
Inevitably, retailers are endeavouring to order the largest available quantities to pre-empt future shortages, further increasing pressure on manufactures and suppliers, resulting in growing lead times and forcing retail experts to speculate over an upsurge in damaged parcels in the short-term, as a result of ill-suiting packaging being integrated into fulfilment operations to meet customer demand.
To alleviate the strain of the global shortage in cardboard, we’re advising our partners to forward order with us now, to ensure the consistent supply of corrugated goods as the uncertainty the current trading climate remains in place.
Suppliers are also encouraging their customers to adopt non-cardboard packaging solutions--such as plastic mailing bags and wallets--and consider opportunistic reuse, with reusable crates and item containers being touted as an alternative for the storage and transport of goods.
To discuss your corrugated goods needs with us, contact us