Yes, cardboard boxes will definitely get
cheaper. This is not a marketing gimmick by packaging material suppliers. In
fact, this is the result of the drop in price for Kraft innerboard.
For those of you who are not aware of Kraft
innerboard, this is the material that is used to produce containerboards which
further get used up for creating cardboard boxes. Industry publication Pulp
& Paper Week had estimated that the prices for the containerboard will fall
as much as $20 per ton. This is a serious drop as compared to the levels which
were present in December, 2015.
Not only has the price fallen just once, it
is being speculated that the prices will continue to fall and eventually the
price drop will reflect on the product of cardboard boxes where the prices will
quite less. A reduction in the price of cardboard boxes around the globe will
have a direct impact on logistics, shipping and courier. Less charges for
corrugated boxes will obviously reduce the shipping costs and will also make it
easy for new ecommerce businesses and startups to send out their products
safely.
‘The
linerboard price drop is a surprise given commentary on stronger-than-expected
December box shipments, analysts at Citigroup Inc. said in a note. Still,
supplies have been increasing, and the competitiveness of exports to Latin
America have suffered from the strength of the U.S. dollar”, BMO’s Wilde said. “We’ll
continue to see pressure on containerboard pricing because demand has been
fairly static," Wilde said Monday in a telephone interview. “It will have
an impact on earnings with these companies."
If the current statistics were to be
considered, then there could be a further drop of $10 per ton in February. All
in all, the drop in price will benefit the customers and shipping companies.
However, it might not be good for the packaging material suppliers as the costs
will come down. There is a bleak possibility that the reduction in prices might
lead to an increase in demand for the cardboard boxes which will eventually
turn out to be a winning prospect for packaging material suppliers.
Only time will reveal the direction in
which the cardboard box prices go. One thing is certain – a reduction in price
will definitely give a much needed boost to startups and small businesses and
help them to compete effectively in the market.
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