Strong global demand coupled with disruptions in polyethylene production have kept resin inventories low enough to drive prices to 3-year highs. However, it’s not just about resin pricing. Labor, freight and other raw material costs are up, too. Of course, these cost pressures are not unique to the domestic industrial packaging marketplace.
On the import item front, there is yet another important dynamic in play. Large shifts in the flow of goods have reduced the availability of vessels and containers heading to the United States. As a result, ocean freight costs have ballooned by 30-40% or more. Additionally, congestion at the ports has reduced schedule reliability.
We expect resin and ocean freight cost increases to extend into the summer months. Higher domestic freight, labor and other raw material costs are sure to continue throughout 2021.
Prices on all Laddawn-made and domestically sourced stock items have increased by 6% in this catalog. Laddawn imported stock item prices have increased by 8%.
You should know that Laddawn continues to maintain a very strong import stock position. Moreover, Laddawn-made inventory is building nicely here at home. In Dallas, we commissioned our latest new large blown film line last month and our manufacturing workforce is approaching pre-COVID levels. Better still, Laddawn’s production is now supported by Berry Global and its extensive manufacturing network.
Last month, we launched two new features on Laddawn.com: a new results format and a Brandit™ custom label builder. Now, when sales and sourcing professionals search on Laddawn.com, results are displayed in a more helpful and familiar B2C format. Then, for all of those thousands of customers who use Laddawn’s Brandit private labeling system, we have made it possible to set up and modify those labels right online, too.
If you are not already a regular Laddawn.com user, log on today to experience the power that comes from instant pricing and lead times. Then, go to Brandit Set Up under My Account to see just how easy it is to bring your brand to life. Clear, fast results and private label on demand, only at Laddawn.com.
On behalf of all of us in Devens and Sterling, Massachusetts, Atlanta, Georgia, Dallas, Texas, Manchester, Iowa, and Sparks, Nevada, thank you for your business
Mark P. Bourgeois
Director of Sales & Customer Experience