Current Facts on the Market Situation

After struggling with the effects of the pandemic for the past 2 years, our world has changed once again since February 24th. The brutal invasion of Ukraine by Russia has triggered an unimaginable humanitarian catastrophe within a few weeks. The economic situation in Germany, Europe, and the world has also changed due to the Ukraine war.

Scarce Resources and High Prices Threaten All Industries

Economic researchers predict that prosperity in Germany will decline. The extent of this decline largely depends on the further development of raw material prices, economic sanctions against Russia, supply bottlenecks for raw materials and pre-products, and economic uncertainty.

What Impact Does the War in Ukraine Have on the Packaging Industry?

For example, the production of packaging and films from plastic is becoming more expensive due to the sharply increased natural gas prices and unstable electricity prices. Some raw material manufacturers have announced drastic price increases for important raw materials such as polyamide and EVOH, which are indispensable for food packaging, among other things.

Relief is not expected before the fourth quarter.

The European pallet market is also affected by the war and the EU sanctions against Russia and Belarus. The European Pallet Association e. V. (EPAL) reports that almost no packaging and pallet wood is currently being exported from Ukraine to Europe, and the production of EPAL Euro pallets is interrupted in many Ukrainian companies. Truck drivers are missing from Ukraine, Russia, and Belarus, which also delays the transport of materials and pallets.

On April 8, 2022, the EU imposed the fifth sanctions package against Russia. This affects some pre-products and packaging materials relevant to the packaging industry. For example, trade with paper, cardboard, pulp, metal, and glass packaging has been restricted. The packaging machinery industry is also affected, with the export of machines for pulp production, paper and cardboard production, and the manufacture of boxes, cores, and drums. For detailed information on the sanctions package, the Federal Office for Economic Affairs and Export Control provides information at www.bafa.de.

Dear customers, we are aware that this phase is economically and emotionally challenging for everyone. As much as we would like to, we can no longer cushion the enormous price increases. In some cases, we have to adjust them multiple times within a few days.

Despite this, there is also good news. At the end of 2021, we were still complaining about delivery times of up to 6 weeks for folding boxes, but these have now approached the pre-pandemic level. With now about 14 days, we are on a good path back to normality and can currently offer constant availability and fast delivery capability of our corrugated products.

If you experience short-term bottlenecks in the packaging area, do not hesitate to contact us. Through our broad network of production partners, we can quickly and non-bindingly organize goods that are not available in the webshop.

Use the following:

+49 35795 1797-10

kontakt@boxxco.com

We thank you for your understanding in this still difficult time and hope for continued good cooperation. Only together are we strong!

Your team from [BOXXCO]