The prolonged disruption of the Strait of Hormuz amid the war involving Iran has constrained shipments of crude oil and naphtha to Taiwan, creating uncertainty for the island’s plastics packaging supply chain.
In response to feedstock delivery delays caused by shipping disruptions in the Middle East, Taiwan’s Formosa Petrochemical Corporation has declared force majeure on select petrochemical supplies
Taiwan’s Formosa Petrochemical Corporation has declared force majeure, while Formosa Plastics has announced production cuts on key petrochemical products.
Taiwanese consumers have been stockpiling plastic packaging products, prompting Costco to impose purchase limits on items.
Costco’s purchase limits cover items such as food storage bags and plastic wraps, effective until April 2.
The prolonged disruption of the Strait of Hormuz amid the war involving Iran has constrained shipments of crude oil and naphtha to Taiwan, creating uncertainty for the island’s plastics packaging supply chain.
In response to feedstock delivery delays caused by shipping disruptions in the Middle East, Taiwan’s Formosa Petrochemical Corporation has declared force majeure on select petrochemical supplies. These include ethylene and propylene, with the company announcing production cuts and suspending new orders.
Meanwhile, due to the disruptions, Taiwanese consumers have stockpiled plastic packaging products, driven by concerns over potential price hikes and shortages.
In an effort to manage demand, Costco Wholesale Taiwan has implemented purchase limits, which started on March 27.
Ten types of packaging sold at Costco Taiwan, including food storage bags, garbage bags, plastic wrap, and zipper bags, will be restricted to one set per membership card.
Consumers and regulatory agencies have put a bullseye on toxic chemicals that leach into products from their packaging. Here’s what you need to do — now — to defuse disaster.
To protect brands from harmful chemicals, don’t rely on vague chemical attestations; and do end testing.
Take ownership of your supply chain by aligning with global regulations that are often more restrictive than FDA standards.
Track package components using CAS numbers to proactively address emerging chemical concerns before they escalate.
1. Take ownership of your supply chain 2. Replace NAIS attestations with specific limits. 3. Conduct end testing. 4. Become proactive
First Quarter Operating Highlights: Consolidated net sales of $799 million in the first quarter of 2018 increased by $33 million, or 4 percent compared to $766 million for the 2017 first quarter. The increase in net sales is primarily due to higher prices, partially offset by lower sales volume. The Company sold 662,000 tons of paper during the first quarter of 2018 compared to 699,000 tons a year earlier. Net income of $33 million for the 2018 first quarter increased by $27 million, or 446 percent, compared to the 2017 first quarter. The higher earnings primarily reflects: •Higher selling prices and a better product mix of $48 million, •Favorable productivity of $10 million mainly due to higher mill production, •Lower recycled fiber costs of $6 million. Click Read More below for additional information.
The packaging industry is undergoing a “quiet revolution,” shifting away from “the risky economic path” of continuous plastic production, according to Sian Sutherland, the co-founder at A Plastic Planet.
Sutherland tells Packaging Insights that rather than accepting stalled UN Global Plastics Treaty progress and “patchwork regulations,” industry and policymakers should recognize this moment as the “tipping point before transformational change.”
“The question isn’t whether this transformation will happen, but how quickly we can accelerate it. Industry leaders already understand their license to operate depends on fundamentally reimagining their relationship with materials — government policy needs to catch up with this reality.”
