To round off the year, we once again present our most clicked articles of 2021. 7th place: Supply bottlenecks in summer
Disrupted supply chains, scarce raw materials and skyrocketing purchase prices. Is the packaging industry facing a summer of crisis?
Toilet paper, pasta and pea soup. It was these three products that symbolised the frequently cited phenomenon of hoarding at the start of the pandemic. Toilet paper, pasta and soups have long been available everywhere again. But perhaps we should start hoarding empty cans, pasta packets and plastic film, because our industry has long been affected. Delivery cancellations and increased prices are causing Bottlenecks in packaging.
"The packaging crisis reaches Germany." This headline ran through the German media last month. The reason was a renewed warning from the Industrial Association for Plastic Packaging (IK)which summarised once again what many in the industry had long since realised from their day-to-day business: Lack of raw materials and Prices have risen sharply are causing some major concerns in the packaging industry.
Hardly any easing in sight
Back in March Eight out of ten manufacturers of plastic packaging have indicated that their production and thus their Limited delivery capabilities are. Two months later, the proportion of those expecting restrictions to a low or medium extent has risen again. Nevertheless, the companies surveyed by the IK anticipate a sideways movement over the next three months, albeit at a very low level.
The accident involving the container ship "Ever Given" in the Suez Canal had an impact on the global logistics chain. (Image: Shutterstock / Corona Borealis Studio)
This is not least due to the Blockade of the Suez Canal. As a result, many raw materials from the Middle East and the USA were redirected to Asia and are still missing from the European market today.
Prices have exploded in some cases
As a result of the shortage, the prices of packaging raw materials have risen by around half since February. In the plastics sector, IK Managing Director Dr Martin Engelmann speaks of a veritable price explosion. LDPE and LLDPE have risen by an average of over 60 per cent since the beginning of the year, as has EPS.
(Image: IK Industrievereinigung Kunststoffverpackungen)
"The industry, which is predominantly characterised by SMEs, does not simply breathe away such price increases." Dr Martin EngelmannManaging Director of the IK
The outlook for many companies is therefore not exactly rosy. This is also the conclusion reached by the IPV Industrial Association for Paper and Film Packaging in its recently published industry survey. While some members of the association are forced to stockpile larger quantities, others are having problems with production. The unexpected delays in delivery have Changes to the production plan and occasionally led to the Deferral of orders led. It is already clear that the shortage of raw materials and the increase in transport costs will continue to Influence on prices will have.
Paper and corrugated cardboard also in short supply
There are also major bottlenecks in the area of paper and corrugated board production. One manufacturer speaks of dramatic developments with regard to the raw material supply of waste paper. Many suppliers are no longer able to deliver the promised quantities. "The cost spiral for the corrugated board industry is continuing - and there is no end in sight to this dynamic," explains the chairman of the Association of the Corrugated Board Industry (VDW)Steffen P. Würth. Costs that are not so easy to pass on to customers, as they are almost impossible to pass on.
Dr Steffen P. Würth, Chairman of the VDW
"However, not every company will be able to withstand such an increasing burden from the cost side to the same extent in the long term." Steffen P. WürthVDW Chairman
The entire supply chain is required
This is another reason why the associations are campaigning for better cooperation. In order to ensure the ability to supply packaged food and other products, good cooperation between the entire Supply chain according to the IPV in a press release. And the IK is appealing to the plastics manufacturing industry not to leave packaging manufacturers hanging. It must pull out all the stops to defuse the situation as quickly as possible.
It's clear that these are not good prospects for an industry that was still confidently patting itself on the back at the start of the pandemic. The joy at the fact that packaging has finally been recognised as a systemically relevant now comes a crisis that ironically highlights exactly that once again. Namely, how important packaging is and what it can lead to if it is missing.
