European Paper Converters Association (CITPA) fears delivery problems
The European Paper Converters Association (CITPA) recently informed about an imminent shortage of necessary packaging material due to the spread of the corona virus. These fears are shared by several associations representing various companies in the packaging industry. They have therefore written a letter regarding the effects of the corona virus, which CITPA published on its website.
A functioning supply chain for packaging of food and pharmaceutical products is considered essential for maintaining security of supply. This is because transport and sales packaging can be used to make goods available to the end consumer. They also serve to ensure maximum shelf life of the products.
Need for open borders
There are now fears that shortfalls in raw material supplies to packaging manufacturers will be caused by increasing border controls and travel restrictions in the EU. They may also further restrict the collection of finished packaging products. Packaging manufacturers already have to store finished products in several countries because many freight companies no longer want to operate across borders.
One reason for this is that there is now a shortage of truck drivers. This is because many employees of logistics companies do not want to drive in regions with particularly severe restrictions. They are afraid of being put under precautionary quarantine there and therefore not being able to return.
Bottlenecks and price increases for raw materials
There are already bottlenecks and price increases for some of the raw materials and supplies needed for the packaging industry. One example is ethanol, which is now in particularly high demand from disinfectant manufacturers during the corona crisis. The packaging industry, on the other hand, needs it for printing and for cleaning the machines.
Source: www.kloepfel-consulting.com