When corrugated board prices move, the first to feel it is the business that buys its packaging again with every shipment; even a fixed-price contract is renewed one day and the new price finds you. The cost of the paper is set by recovered fibre, energy and transport.
| Link | What it does |
|---|---|
| Paper mill | Announces an increase per tonne; the announcement is not always implemented in full |
| Box maker | Passes the increase on under the price-adjustment clause |
| You | Level the quotes, find cost per shipment, read the clause |
Before comparing the new quote with the old, check that carton dimensions, strength specification, print, quantity, freight and delivery point are the same. Then divide invoices, freight and storage by accepted deliveries in the period, and record crushed or wet cartons separately.
Stocking ahead of an expected increase is a common tactic, but you carry shelf space, the time capital is tied up and the cost of cartons left unused. In the contract, read quote validity, notice and re-quotation terms; instead of predicting the next increase, track actual invoices and order dates.
Where shipments are frequent and routes short and repetitive, a returnable-container calculation is worth doing too: once a container is bought the main cost is in the past, and running costs are washing, chemicals, electricity and return transport. For a company exporting a few times a year single-use packaging may stay reasonable; the decision depends on trip count and cost verified under the same protection.
