Anyone that uses cardboard packaging will be all too aware of the dramatically increased costs over the last year.
Since countries all over the world went into lockdowns, and people stayed at home, online ordering soared and with it so to did the demand for cardboard corrugated packaging.
There are a number of key issues that stem from this, which has led to both the soaring prices and shortage of corrugated card – namely demand, raw materials shortage and global transport.
Recycling of cardboard is key to the paper supply chain. With excess online ordering at unprecedented levels, ordinary recycling levels could not be maintained – therefore pressure on raw materials mounted, with demand far outpacing supply.
The demand from e-commerce businesses across the globe continuing, and many stockpiling supplies, the cost of raw materials ultimately increased to high levels.
In the backdrop of this, other factors have been added into the mix with Brexit uncertainty, lockdowns and the need for staff to isolate, which will have undoubtedly led to staffing issues. Furthermore, the pandemic has also lead to high levels of disruption with global shipping. Containers haven’t been where they needed to be; ultimately impacting both supply and increased prices.
Whilst these factors have presented obvious challenges to us at Lindum – through close collaboration with our customers we have been able to minimise shortages and maintain supply.