The coronavirus pandemic caused global disruption to raw material production and also to international shipping. After just six months, global trade had recovered, resulting in a lack of empty containers in container logistics and insufficient transport capacities in international shipping.
The consequences of these developments were global delays in raw material deliveries and the availability of these materials. All of these factors are now resulting in cost increases, some of them substantial, including in the paper industry, and Koehler Paper is also being affected by these.
The events of the past months mean that there is an increasing focus on the role of procurement departments, on which there is particular pressure in the current crisis to guarantee reliable production supply. Like other companies in the paper industry, Koehler Paper is being confronted by often significantly longer delivery times worldwide.
Klaus Krieg, Head of Supply Chain Management at Koehler Paper, stated: “Many of our suppliers already apply the clause regarding force majeure in their contracts with us, due to the critical supply situation for raw and ancillary materials.”
On top of this, there is a global shortage of containers and shipping capacity, which is further extending delivery times by four to six weeks.
However, it is not just the shortage of raw materials that is causing turmoil in the global paper industry. In addition to the problems with procurement, companies are also experiencing logistics issues with deliveries to customers.
The huge increases in raw material and logistics prices across all sectors are already being passed on to customers in the form of price increases. Further price increases will be inevitable.
