We are encountering extraordinary lead times for the supply and demand of corrugated cardboard, the likes of which we have never seen before. The demand for paper has continued to grow across Europe, leading to sizable cost increases on raw materials, for both kraft and recycled papers and significantly extended lead times from days to months. We are facing a combination of market conditions which are contributing to these extremely challenging times such as Covid-19 and Brexit.
The Confederation of Paper Industries recently commented:
“Clearly the pandemic has significantly changed society, not least in its approach to shopping. We have seen dramatic increases in online ordering, with the consequent demand for corrugated packaging that is required to ensure that goods are protected.”
“The pandemic has also had an impact on global trade, with an imbalance in containers around the world, which has had an impact on transport logistics. Companies have introduced safe working practices, but there have still been occasions when employees are required to self-isolate with the consequent impact on staffing and production.”
“Many companies will have been stockpiling in the final months of 2020. With the implications of Brexit now taking effect, products entering the UK can be subject to delays at customs. There have been examples of significant delays over the course of recent weeks.”
Click the link below to view the full article on the official Corrugated Cardboard Industries website-
We wanted to keep you abreast of the market wide situation but not to cause alarm. We have extensive warehousing of stock products and our replenishment scheduling has been adjusted to consider the unusual lead times.
Thank you for your understanding and support during this challenging period.