The ResourceWise U.S. Unbleached Corrugated Box Cost Index: A Cost-Based Alternative for Corrugated Contract Price Adjustments
Recent linerboard price increases have heightened questions among corrugated packaging buyers and suppliers about how well existing contract adjustment mechanisms reflect the cost of producing a finished box. They have also reinforced the need for reliable alternatives for parties that want to structure their agreements utilizing a more complete methodology.
Corrugated contracts in the U.S. have historically often used linerboard indices as the basis for price adjustments. While this may make economic sense previously, the industry is now much more integrated with several players approaching 100% during parts of the cycle. Moreover, we hear from both customers and buyers that they desire an alternative index to provide choice in the marketplace, and options to develop creative and efficient ways to do business. Read more for details on this subject.