
The economic consequences of Russia's war of aggression against Ukraine are clearly being felt in many sectors. The Flexible Packaging Europe association is also concerned about high raw material and energy prices and low availability. Plastics, paper and aluminium in particular are in short supply.
Energy and commodity prices were already at a very high level, but rose even further after the start of the war in Ukraine. According to the association, this increase, combined with availability problems, is having a serious financial impact on the flexible packaging supply chain. All main substrates for flexible packaging, such as plastics, paper and aluminium, as well as adhesives, coatings and inks, are affected. The industry is confronted with high energy prices in the production of flexible packaging in its plants and in logistics.
Peak not yet reached
Although the proportion of costs for logistics is lower than in other packaging sectors due to the low product-to-packaging ratio of flexible packaging and efficient transport (usually on reels), the absolute increase in logistics costs is still lower. according to the association very significant. Reports from freight forwarder associations even showed the risk of a reduction in available logistics capacities, as companies would have to give up their operating business due to high diesel prices.
„The extent of the cost increases resulting from this situation for manufacturers in the flexible packaging industry cannot yet be fully estimated, but we are convinced that the peak has not yet been reached„, says Guido Aufdemkamp, Executive Director of Flexible Packaging Europe.
Source: Flexible Packaging Europe
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