As if 2020 wasn’t already hard enough, the corrugated packaging industry is being hit with a paper shortage. The cause of the shortage can be traced back to a few main factors.
- China has imposed a ban on imported waste paper, which could go into affect in January of 2021. Due to this imposed ban, Chinese paper mills have begun to stock up on waste paper imported from the USA, putting a constraint on inventory levels for domestic companies.
- 40% less recycled paper has been collected this year.
- Global lockdowns have caused a large decrease in waste paper collection.
- With many borders being shut down for prolonged periods of time, shipping containers of imported waste paper have been stuck at sea ports. This not only decreased paper supply, but also increased costs, with added on detention fees, ground rates, and late filing fees.
How is The Packing Industry Combating The Paper Shortage?
Companies, such as ITB Packaging LLC, are diligently planning for the challenges ahead, with expertise in supply chain management and inventory control systems.
With a COVID-19 vaccine now in sight, the global economy will begin to recover and waste paper collections will return to even higher levels. These paper shortages are just another bump in the road of 2020. The packaging industry, like always, is ready to meet the demands of customers!