March 30, 2017
Corrugated packaging is very much a local and somewhat regional business. However, we exist in a global marketplace, so we will be bringing you some foreign ideas. Knowing that we see the import of finished boxes from China into the West Coast, the import of containerboard to that same area from Asia and Oceania, and containerboard imports from Europe and the Middle East on the East Coast makes the world a little smaller. The devaluation of the renminbi allows China further opportunities to export. The FX, or foreign exchange rate, for Europe and Canada is also favorable to those areas, allowing them to export easily today.
This is the second installment in a series of six articles on what those new to our industry could use as foundational blocks to build a successful career. The materials covered in this series could also be good encouragement for those who have been laboring for a while and need a fresh perspective. The not-so-old saying states that when the student is ready, the teacher will appear. Your Association is here for you!
Recent announcements at the end of 2016 regarding the rapid growth of the e-commerce segment of corrugated packaging have been impressive, especially for those who have chosen to participate. Estimates from Pulp and Paper Week and other security analyses say that approximately 8 percent of all corrugated is on this new edge of packaging. The largest portion of corrugated, which is in food and beverage, is flat. Where will you grow your business?
Think beyond the obvious and look to digital printing, customized printing in which an individual’s actual name appears on their unique package, and printing inside the box, all in one pass. All this is commercial today. And ponder that digital is so fast that there are now installations in place where one can preprint roll stock in-line with the corrugator. Imagine no converting crush from conventional systems and the opportunity to use components with less fiber!
Think beyond the obvious and look to digital printing, customized printing in which an individual’s actual name appears on their unique package, and printing inside the box, all in one pass. All this is commercial today.
Let’s go back to imports. I have personally seen at least eight European and Middle Eastern containerboard suppliers participate in combined board trials here in North America. While all of these producers of 20.5# recycled linerboard generated the desired ECT levels required with reduced fiber, only one was chosen. This begs the question, “How extensive will your design experiments be going forward?” While 18# linerboard was available from domestic production as early as 1993, it was largely ignored; today, the grade is no longer an anomaly for independents.
Growth of recycled linerboard volume in North America is greater than virgin kraft production. This category is generally considered as 100 percent recovered fiber in the marketplace. However, the true definition as defined by the American Forest and Paper Association is any linerboard made with more than 21 percent recycled fiber. RISI’s weekly Pulp & Paper Week newsletter is considering adding a price index for this segment. At the time of this writing, there is an open period of comment solicitation about its inclusion in the monthly Price Watch for containerboard.
One of Pack U’s newest e-learning courses is called “Understanding Board Combinations.” In this module, we pointed out the physics of engineering ECT, which is based primarily on the short column test of linerboard and medium, and not on the basis weights of the components. As a combiner and converter, you are buying on the containerboard’s strength and selling on an actual ECT basis, which is a strong predictor of initial and retained box compression. Your customers’ interest in this will depend on where they lie in the supply chain.
Ralph Young is the principal of Alternative Paper Solutions and is AICC’s technical adviser. Contact Ralph directly about technical that impact the corrugated industry at askralph@aiccbox.org.
