Us, too. We’re here to break it all down for you, including why these changes are occuring, what to expect next, and how you can keep business churning.
at a glance
Paper inventory is in high demand.
The cost of containers has skyrocketed. In part because of supply and demand, increased consumer spending, port delays due to COVID-19 protocols, and retailers preparing for the holidays earlier than usual.
Inventories are low.
Most paper imports have been forced to reduce volumes, causing higher demand for domestic mills which are either depleted or running low.
Coated freesheet is facing a critical tipping point.
North American mill inventories are out of stock and selling everything they make, while the import supply chain remains very challenged.
Mill inventory isn’t going back to normal levels anytime soon.
Variabilities in the supply chain mean rising YoY costs for land freight, ocean logistics, and input costs.
Strategically positioned value partners are less likely to face major impacts.
That means suppliers who had integrated supply chains established before the pandemic and partners with enough scale to absorb some volatility.
Frustrated with paper sourcing?
We’re here to help. With continued analysis of the landscape, tips on how to navigate the difficulties, and the outlook for what changes are on the horizon, these resources can help you make better sourcing decisions.
Your questions answered
Is the supply chain loosening?
Not yet. Supply is still constrained, while transportation costs and operating rates remain high, so prices may yet increase. However, some products appear to have slightly better outlooks for 2022.
What can you do to get what you need?
By sourcing standard sizes, buying what’s available, and focusing on what mills are currently making, you can find ways to cut through the current difficulties.
How can you do the most with what you have?
Use allocation to your advantage. Buy familiar brands. Consolidate SKU’s. Be creative on press. Maximize digital printing assets.
What’s going to happen now?
With demand for away-from-home products expected to rise, while availability of recovered paper streams is at a record low, there’s a chance that recycled fiber products could soon rise in price or decline in availability—or both.
Explore the issue
Has paper sourcing changed for the better in 2021?