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Constrained supplies, higher freight costs, and continued strong demand fuel ongoing price increases

Constrained supplies, higher freight costs, and continued strong demand fuel ongoing price increases

Constrained supplies, higher freight costs, and continued strong demand fuel ongoing price increases

Globally, during the pandemic, demand for the manufacturing sector plummeted drastically, paperboard being no different, faced the lack of demand. Now while the economy is recovering, the many markets and the paperboard market is experiencing an significant increase in demand. A sudden surge in demand has led to a major imbalance in the demand-supply chain. In addition there is a major shortage in the transportation & trucking availability and those costs have escalated tremendously in recent months, Another factor on the freight costs is most recently the fuel surcharge escalations of 35% due the increased cost of diesel fuel. Due to this gap, the cost of all raw materials has increased multiple times over the past several months, and just today most major paper mills are announcing another 6 to 8% price increase “Effective immediately” with more increases likely to come based upon our conversations with our mills in all paper and board grades. We are doing everything possible to limit these increases and avoid product flow disruptions. But unfortunately, that comes at a cost.

Please be assured that we will continue to evaluate all factors to identify and deliver premium products while controlling costs. We sincerely appreciate your patience and understanding during this time. If you have any questions about your products specifically, please feel free to contact us.


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Where Start My Paperboard Selection

Where Start My Paperboard Selection

Stepping into the packaging arena can be intimidating. It is tough to know where—or even how—to start. Often the package is the first item that needs to be designed.  There are many different grades of paperboard, so you will want to select one that is sturdy enough for your packaging needs and balances your budget and your brand. In the paperboard world, there are plenty of types available and in several different grades, each with unique features suitable for different reasons. The most popular grades of paperboard are:

 
Recycled Chipboard – Is a thick paper-based board that is made from 100% recycled fiber. Chipboard is a very versatile board stock that can be converted for a variety of uses, from industrial packaging and commercial printing to boxes and crafting. Chipboard ranges widely in thickness, from .016 up to .250”. The backside of a legal pad of paper is one common example of thin chipboard, while hardback book covers are an example of a thicker higher density chipboard. 
 
Solid Bleached Sulfate (SBS) - Also known as bleached board, this is a premium bright solid white paperboard grade produced with virgin bleached wood pulp. It is often coated with a thin layer of white kaolin clay to improve its printing surface and may also be coated with polyethylene (PE) for wet strength and food packaging. Bakery boxes and pharmaceutical packaging is often made from SBS. The thickness range is vast, from a single ply .008” up to .250” for a multi ply laminated board.
 
Coated Virgin Kraft (CUK or SUS Board) – A natural brown paperboard with excellent tear resistance making it the strongest board in the industry. Often it is coated with white kaolin clay for printing. Coated Virgin kraft is popular for beer and soda packaging. Available thicknesses typically range from .012” to .024”
 
Coated Recycled Board (CRB) – Also known as Clay Coated News Back (CCNB), this recycled paperboard is typically coated with a thin layer of white kaolin clay to improve the printing surface. It is produced from 100% recycled paperboard including old containers and newspapers. CRB is often used for consumer packaging, frozen foods, and dry goods. Available thicknesses typically range from .012” to .024”
These are just a few of the most basic type of paperboards available. There is plenty to consider when it comes to deciding on your paperboard. Cost, speed, and quality all bring their own requirements or limitations to be considered, and you need to decide what matters most to the creation of your packaging
Packaging is complicated. We are here to be a resource to find the perfect paperboard fit for your needs, brand, and your budget. Be sure to stop by Lamitech.com and see what the world of Lamitech has to offer. And if you do not see what you are looking for, or have any paperboard-related questions, please do not hesitate to contact us. Let’s see what we can create, together.




Andrew Londergan
Andrew Londergan

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