Australian packaging manufacturer Caps & Closures has broadened its sourcing network and approved additional materials as global freight and resin markets remain unsettled, and ongoing disruption across international shipping routes continues to affect freight planning, availability and pricing.
In an update to customers, the Melbourne-based closure manufacturer said exceptionally low water levels on Germany’s Rhine were reducing barge capacity and shifting more freight to road and rail, while disruption at major Chinese ports was affecting schedule reliability. Some polymers also remain subject to availability and pricing pressure.
The company has responded by identifying additional supply channels to complement its existing sourcing network. It has also completed testing and approval of additional materials, giving it more options to support production when particular materials are constrained.
Managing director Brendon Holmes said the measures would give the manufacturer greater flexibility to respond to changes in material availability and pricing.
“Together, these measures strengthen our ability to manage changing market conditions and support continuity of supply for our customers,” he said.
Caps & Closures is also monitoring inventory, material availability and international supply conditions to identify potential constraints before they affect production.
The measures build on resilience strategies outlined by the company earlier this year. In April, Caps & Closures told PKN it was working to optimise material use, incorporate recycled content where specifications allowed and improve manufacturing efficiency. By June, Holmes described supply conditions as having “stabilised, but not improved”, with sourcing still unpredictable. PKN’s June supply-chain update found that packaging businesses were moving from crisis response towards longer-term resilience management.
Caps & Closures is now encouraging customers to provide early forecasts for Christmas and year-end production, allowing time to secure materials and allocate manufacturing capacity around extended overseas lead times.
“The more visibility we have, the better we can plan with customers around material requirements, production and lead times,” Holmes said.
The latest update reflects a broader shift among Australian packaging converters towards supplier diversification, approved material alternatives and forward planning to manage the country’s exposure to imported polymer supply.
