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.