Focus on: Packaging board

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

As 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.

Think flexibly

Be prepared to make instant decisions. Board merchants do not now know what materials they will have in stock until it arrives and it will be sold on again within 24 hours with no certainty of when, or if, that stock will be replenished.

Be prepared to accept differing grades of board to enable continuity of supply of products to passengers even if it means a redesign of packaging items, you must be prepared to be flexible.

Expect extended lead times and I mean extended, some mill orders from early Q1 will not be delivered until Q2-Q3 2022 and that is before you add

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 without fail every new mill making comes with an increased price which neither suppliers or airlines can be expected to absorb. Board is now international and we buy from all around the world including South America and of supply. Many board mills are now the Far East – so we know these current shortages and price increases are worldwide. I am well aware that this does not make good reading but these are the facts as they stand today and I hope fully understanding this element of your product will at least help you to protect your product and increase your business during 2022.•

A global shortage of packaging board means you must be accept differing grades flexible and act fast of board to enable continuity of supply of products to passengers even if it means a redesign of packaging items, you must be prepared to be flexible. mean extended, some mill orders from early Q1 will not be delivered until Q2-Q3 2022 and that is before you add