Restaurants and takeaways are facing a shortage of paper cups, bags and cardboard delivery boxes as importers struggle with high demand and a global supply chain crisis.
One supplier said the demand is so high that two containers filled with some three million paper cups were sold within a week of arriving in Malta ‒ following a three-month wait from China.
Suppliers explained this was a global situation brought about by a wide array of factors impacting the supply chain. These include cargo container shortages, congested shipping ports and increased costs for freight and raw materials.
“During the coronavirus pandemic lockdowns around the world, the global demand for freight dropped as people stayed home. Then, when lockdowns were lifted, the demand increased suddenly, causing shipping backlogs,” explained Steve Rizzo from packaging importer Inserv.
Apart from this, there is also an increase in demand for take-out containers brought about by a change in culture. This shift was triggered during the pandemic when many eateries set themselves up to offer delivery with the support of food delivery services, a trend that remains strong.
Gordon Vassallo, from packaging distributor Packit, added that due to the delays and increased costs of shipping from China, many suppliers were placing orders from the EU and Turkey where factories do not have the capacity to deal with spiralling demand.
Price increases
The demand for the raw material – pulp and paper – far exceeds supply, escalating costs, he added. “There is more demand and less supply. We have experienced a 30 to 40 per cent increase in prices over the past six months and we expect it to keep increasing,” he said.
He added that customers’ expectations play a key role in the demand increase.
With increased environmental awareness, brands have steered away from ordering plastic packaging so as not to negatively impact their brand image. In fact, some eateries have apologised to customers for having to temporarily resort to plastic containers as they wait for the paper or cardboard supply to arrive.
The importation of many single-use plastic items has been banned since January in an effort to curb pollution and limit their devastating effects on marine life.
The ban includes the importation of plastic cotton bud sticks, cutlery, plates, straws, beverage stirrers, balloon sticks and polystyrene containers and cups. However non-jablo plastic cups and containers are still allowed.