The Newcastle pneumonia outbreak has changed people's spending habits. Many people in the UK have become accustomed to shopping online, which has led to a surge in demand from businesses for paper boxes. However, due to the epidemic, there is a shortage of cartons in the UK and recycling is facing difficulties.
Image from: CCTV Finance
In the UK, online shopping is becoming more common as the epidemic embargo period is extended. Everything from small potted plants to large bicycles are being packaged and sent directly to consumers" homes. The surge in online orders has dramatically pushed up demand for cartons for packaging. Many merchants say they have been unable to ship due to a shortage of cartons. Some wine retailers and toy retailers in the UK have had to extend their shipping times from 2 days to a week to cope with the logistics of packing cartons.
Simon Erin, chief executive officer of the British Recycling Association: People used to go to a toy store and buy items in a bag. That's not the case anymore. Consumers who buy ten toys online are likely to need ten separate packing cartons to send the goods home.
At a carton company in Birmingham, England, staff are working overtime to process online orders for packing boxes. The staff introduced that the warehouse has three large trucks every day, completing more than six carton receptions and deliveries, but still can not meet the demand in the market.
Mike, Managing Director of Sadlers Carton Ltd. in the UK: We are now pre-scheduled for orders through June, which is rare. The price of packaging boxes rose by 6% to 7%, and we are already considering a new round of price increases. Because the demand for the whole year of 2021 is too high.
Reuters Prince Xin: The person in charge, Mike, said this warehouse was full at this time last year, and now the cartons have sold two-thirds. Many of these packing cartons like the one behind me were booked in December last year. The market demand is currently too high, but the supply is extremely limited, these goods were delayed for nearly two months before delivery.
It is understood that some of the raw materials for packaging cartons in the UK need to be imported from Germany and the Netherlands, and in the second half of 2020, the paper available for packaging stocks in Europe fell by 20%, and the whole market is in a state of oversupply. The Federation of British Paper Industries believes that with the recovery of European paper production capacity in 2021, as well as the lifting of the embargo in various countries, the supply will hopefully reach a balance.