High prices and spotty supplies of plastics are expected to continue or even worsen in the coming months and could endanger the delivery of food and other vital products, according to industry association Flexible Packaging Europe (FPE, Düsseldorf / Germany; www.flexpack-europe.org). Guido Aufdemkamp, the association’s executive director, said, “The polymer industry should not take the end-consumer hostage during these difficult times of the coronavirus pandemic in which the entire population is so dependent on the safe and stable supply of food and hygienic products as well as medical and pharmaceutical goods. We call on the polymer industry to do their outmost cooperating with their customers to solve this unfortunate situation.”

In a statement, the group cited a “concentration of ‘force majeure’ declarations or ‘maintenance’ announcements by the leading polymer manufacturers in Europe.” It said these actions have has created sudden and significant shortages along with unjustified price increases in the supply chain. The group said that in Europe, almost half of so-called fast-moving consumer goods other than beverages are packed with flexible packaging. These include foods, pet food, and personal and household care products, and nearly two thirds of the materials used for flexible packaging are plastics.

The association added that the ongoing unstable supply of raw materials, combined with pressure from legislators and consumers in terms of sustainability, is increasing attempts for material substitution. The warnings followed statements from other processor organisations about the possibility of slow downs and shutdowns at shops that could stop delivery of finished products (see Plasteurope.com of 08.03.2021 and 05.03.2021).

In France, Françoise Andres, president of the country’s plastics packaging association Elipso (Paris; www.elipso.org) said the current situation has plastic packaging manufacturers leading a “daily struggle” to ensure packaging deliveries for their customers. She noted that shops must constantly reorganise their schedules and production processes according to the latest information, or even postpone deliveries due to the changes.

The French association calls on its suppliers to give more visibility to the situation as well as the actions implemented to ensure the crisis ends and a standardised supply chain resumes. To justify their measures, plastics producers cite the forces majeures caused by the winter storms in the US, technical incidents linked to the dilapidated nature of the installations, or reduced production due to Covid-19. At the end of last year, SMEs in the sector were the first affected by this situation, but the risks of delivery disruptions are gradually spreading to all players, regardless of their size, Elipso said.

As prices for resins continue to rise, so do associated shipping costs. According to the European Federation of Wooden Pallet & Packaging Manufacturers (FEFPEB, Tilburg / The Netherlands; www.fefpeb.eu), further price increases in the wooden pallet and packaging industry are “inevitable” as companies across Europe and the rest of the world continue to feel the effects of the pandemic.

The association said it expects sustained price hikes for raw materials – including wood and steel - and availability problems in certain markets will put upward pressure on prices for several months.