Product-to-Market Pathway
SUMMARY: Economic recovery in 2021 is increasingly threatened by rampantly increasing supply chain cost. Spiking prices for raw materials, labor shortages in manufacturing, and alarming rates of COVID reemergence are stubbornly challenging businesses across all industries and are defining the wildly volatile and unreliable global supply chain environment for the remainder of 2021.
Severity Scale
Low
Moderate
High
Factory-to-Port Outbound Logistics
Ocean Transport Inbound to North America
DC-to-Customer Outbound Logistics
Raw Materials
Manufacturing
Plastic resin cost increases have passed to manufacturers each month in 2021 and Paper-pulp and Aluminum supplies are constrained and
Coronavirus variants and pandemic limits on foreign workers are driving production shutdowns and labor shortages across several manufacturing regions.
Wide-spread delays and escalating costs for transporting freight from factory-to-port due to shipping container and handling equipment shortages. Yantian / Shenzhen port shut down in May due to COVID worsening global supply chain chaos.
Cargo berths on ships are extremely constrained, forcing premiums paid by shippers upwards of $20,000 per container load. On-time arrival averages remain below 40%, all-time
Continued severe congestion is driving
loading & unloading ‘dwell’ time for trucks at ports to 2X-normal rates and inland terminal log-jams, equipment shortages and wildfires are doubling rail trip times from port to destination across North America.
lows for this critical performance metric.
costs are up, significantly.
Prices paid for raw material inputs have increased across all major product substrates each month since the start of this year.
Raw Material
Affected Product Lines
Material Cost Rate of Change since January ‘21
Aluminum
Foil sheets, lids, wraps
20 – 30+%
Paper, Paper-Pulp and Paper Board Polypropylene, HDPE, LDPE, Resin, Polystyrene, PVC
Napkins, Placemats, Folded Takeout Boxes, Guest Checks, Register Rolls, Wipers, Towels, Filters, Packaging for all products
20-30+%
Cutlery, Cups & Lids, Takeout Packaging, Stirrers, Straws
10+%
Bagasse Fiber
Eco-friendly Takeout packaging and Cutlery
30+%
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