FINANCIAL ANALYSTS: RockTenn announces a $50/ton containerboard price hike
NEW YORK, Feb. 25, 2013 (Viewpoint) - excerpt from Deutsche Bank

Trade contacts report that RKT has announced a $50/ton price hike for containerboard. Implementation dates vary, but most contacts suggest an April 1st implementation date. G-P (11% share) announced a $50/ton price hike last week (effective March 21st) and a box price hike effective April 1st.

8% Corrugated Price Increase Drivers

Have you noticed that your boxes have been the same price for almost 3 years?  The party is over.  North American container board mills implemented a $50 per ton price increase in liner board effective in September.  That translates to an 8% increase in the price you'll pay for your corrugate boxes, displays, and liners.

 

Export and domestic demand are on the rise, which has caused container board inventory levels to dwindle hitting a 33 year low in August.  Unfortunately, increasing production is not easy since the industry is running at 97.5% capacity after a lot of consolidation (has anyone noticed that Weyerhaeuser, Smurfit-Stone, and Temple-Inland are MIA?).  The bottom line is that demand is greater than supply which results in higher prices.

 

 

It might be a good time to revisit your packaging and supply chain to see if you can squeeze some efficiencies out.  Perhaps switching from 200# to 32ECT, redesigning your product packaging to use less, or implementing a more efficient JIT warehouse program could offset the increase.

 

Imprinted Vinyl Binders:The most cost-effective and widely-used material for binder construction, vinyl binders offer a huge range of options for decoration and customization. We have 100's of material and color choices to match or complement your company's corporate identity.

Clear Overlay Vinyl Binders:COL binders have a clear vinyl pocket on the front and back covers and spine that is open at the top to insert and remove your own sheets.  These binders can be reused for many different projects because you can change the sheets making it versatile and cost-effective. 

Entrapment/Embedded Vinyl Binders:A permanent version of the clear overlay binders.  Printed sheets are trimmed to size and encapsulated under a layer of clear vinyl on the front cover, spine, and/or back cover.  It is sealed on all sides to prevent your sheets from being removed.  This binder gives you the option of having a professional full color graphic binder without the cost of screen printing directly on the binder.  Don;t forget that you can selects a custom color vinyl to compliment your artwork.

Polypropylene or polyethylene binders:Poly binders are one of the strongest, most durable types of binders because they are constructed of a single sheet of poly.  Poly is flexible, lightweight, and economical.  Additionally, poly binders are long lasting because they resist dirt, grease, and water and are suitable for variable-climate storage.

Turned Edge Binders: Turned edge binders provide a high quality presentation, generally a paper, cloth, linen, leather, vinyl or printed sheet wrapped around chipboard. Edges are turned in a variety of styles and the binder is then lined with a customer chosen material and finished with decoration if desired.

Paperboard Binders:Paperboard binders are made of heavy-duty paper stock that is printed digitally to display your company’s identity in full color, then can be laminated with an attractive film lamination.  Best for ring sizes upto 1".

Chipboard Binders: The eco-friendly alternative for your “Green-Minded” company! Made of recycled product, this renewable binder is the “skeleton” for most vinyl binders before being wrapped. It looks great with decoration ranging from silkscreen to debossing to custom-printed decals.

There are currently two tests used throughout the corrugated industry to determine strength. Historically, the long time industry standard has been the Bursting (Mullen) Test, which is related to the rough handling durability of corrugated material. Bursting Test is a measure of the force required to rupture or puncture the face of corrugated board and is measured by a Mullen Tester. This force is indirectly related to a carton's ability to withstand external or internal forces and thus to contain and protect a product during shipment. Bursting strength is reported in pounds (for example, 275#).

A newer standard that has achieved widespread acceptance is the Edge Crush Test (ECT). This is a true performance test and is directly related to the stacking strength of a carton. ECT is a measure of the edgewise compressive strength of corrugated board. It is measured by compressing a small segment of board on edge between two rigid platens or plates perpendicular to the direction of the flutes until a peak load is established. This is measured in pounds per lineal inch of load bearing edge (lb/in), but usually reported as an ECT value (for example, 44 ECT).

In general order of increasing durability, here is how the two methods compare:

150# C flute, B flute, and E flute

32 ECT c flute, B flute, and E flute

200# C flute, B flute, and E flute

44 ECT C flute and B flute

250# C flute and B flute

275# C flute and B flute

48 ECT Double Wall

275# Double Wall

350# Double Wall

450# Double Wall

Here's a problem: a local craft brewery needs to provide samples of their beer to various distributors.  The purpose is to let them try it before thay stock it on their shelves.  They have been using bubble wrap, duct tape, and a little luck to ship a six-pack in whatever box was available at the time.  

We developed a better solution for shipping a 6-pack of beer so it arrives in-tact and the recipient doesn't wind up standing in a pile of bubble wrap and peanuts.  PakCom designed a shiping carton that will protect a 6-pack for shipping via common carrier.  Our design meets the ISTA-1A requirements for Vibration and Shock.  The shock test is shown below. 

 

DISCLAIMER:  UPS and FedEx have specific requirements for shipping alcoholic beverages.  It is the users responsibility to meet these requirements.  More information can be found at: http://www.ups.com/wine