42 / FOCUS ON
Packaging board A board shortage is creating new challenges for packaging suppliers. Peter Hargreaves, of The Alexir Partnership, explains how to protect your products
A
s we emerge from the strains of Covid-19 and inflight service resumes, the focus is returning to food packaging and a new challenge has arisen. Along with the revival of business, in late 2021 we began to see an acute shortage of raw materials especially carton board impacting orders. I'd like to be able to give you some concrete reasons for this along with a clear path and timeline for when this situation will ease but unfortunately I cannot. Reasons for the shortage range from Covid-hit board mills through to a massive increase in demand worldwide as all markets started to reopen. But one thing is patently clear – this situation will not improve in 2022. For specialist materials, such as ovenable and grease barrier card, improvements could take another 12-18 months. So what can you do to protect your inflight service delivery? My advice would be to dual source where possible. There is no guarantee a second supplier can help where your incumbent supplier cannot, but it will spread the risk greatly. However solid your supplier relationship is, they can no longer promise continuity of supply. Many board mills are now
allocating the board stock and suppliers cannot be certain of their allocation.
the conversion time taken to turn the board into usable product packaging. Do not promise or get tied into fixed price contracts, just don’t do it! Almost Think flexibly without fail every new mill making Be prepared to make instant decisions. comes with an increased price which Board merchants do not now know neither suppliers or airlines can be what materials they will have in stock expected to absorb. until it arrives and it Board is now will be sold on again international and we within 24 hours with no certainty of when, A global shortage of buy from all around the world including or if, that stock will be packaging board South America and replenished. means you must be the Far East – so we Be prepared to flexible and act fast know these current accept differing grades shortages and price of board to enable increases are worldwide. continuity of supply of products to I am well aware that this does not passengers even if it means a redesign make good reading but these are the of packaging items, you must be facts as they stand today and I hope prepared to be flexible. fully understanding this element of Expect extended lead times and I your product will at least help you to mean extended, some mill orders from protect your product and increase your early Q1 will not be delivered until business during 2022.• Q2-Q3 2022 and that is before you add
onboardhospitality.com
Focus On packaging board V6.indd 42
3/28/22 12:01 PM
