The ongoing shipping crisis is causing an increasing number of Australian companies to look at sourcing packaging locally, as importing from China becomes more costly and takes longer.
CEO of freight forwarding company, Verus Global, Jackson Meyer says there are major issues with the supply chain at the moment, with Australia at “the bottom of the pecking order” and 600,000 shipping container slots withdrawn in Australia, with the lucrative trade in the US being prioritised.
He said: “For many Australian businesses importing from China is no longer a feasible option, and does not provide a reliable ETA.”
Meyer says that there is no end in sight, and that consumers will feel the effects across not only the food and beverage industry, but also across the fuel, retail, and homewares industries.
He said, “The GDP in the US is astronomical, and the shipping market is feeling the impact of US congestion on the industry - and as a result this directly affects businesses, who then will pass on costs to the consumers. For consumers, the cost of goods has risen dramatically thanks to a global shortage of shipping containers and the pandemic - and unfortunately this will continue to rise,” explains Meyer.
Tony Bertrand, marketing manager at Ball & Doggett, the country’s largest supplier of printable media said, “No doubt there is opportunity for locally produced packaging. Freight costs from Asia are higher, increasing, and won’t go down. While retail for instance is still hamstrung by the lockdowns it will bounce back. Those retailers will need packaging, and the upside of the global shipping situation is local opportunity, particularly in packaging manufacture.”
Betrand said Ball & Doggett has no issues with supply across the board, and it is operating its just-in-time business as usual.
Meyer said consumers will feel the effects across not only the food and beverage industry, but also across the fuel, retail, and homewares industries. He said companies will be paying more for cardboard packaging from overseas, and passing these costs on directly to consumers.
Global digitgal packaging giant ePac is currently building a new plant in Australia, set to open by the end of the year, and angticipates it will bring back a signficant amount of work that is currently coming from China.