Retail

Cardboard-box shortage is latest disruption to global shipping


The latest hurdle to shipping goods in a world gripped by pandemic-driven supply chain disruptions is a shortage of cardboard boxes, according to one of the world’s biggest makers of the material.

The supply chain is “very stretched” and making and shipping high-demand packing materials to customers is expected to remain tough in the first quarter of 2022, International Paper Chief Financial Officer Tim Nicholls said Thursday on an earnings call.

While e-commerce has fueled demand for packaging, pandemic-related labor shortages and shipping constraints are also making it harder to make and deliver the boxes used to carry everything from food to consumer goods.

“What we’ve got is a fair amount of demand and orders but the inability to get it made or get it shipped,” Chief Executive Officer Mark Sutton said. “Shipments will be choppy in January and most of February.”

Sutton expects production disruptions to ease in the second quarter as the omicron wave of the pandemic wanes.

(The one-stop destination for MSME, ET RISE provides news, views and analysis around GST, Exports, Funding, Policy and small business management.)

Download The Economic Times News App to get Daily Market Updates & Live Business News.



READ SOURCE

Leave a Reply

This website uses cookies. By continuing to use this site, you accept our use of cookies.