Crisis! South Korea's express delivery cartons are in short supply and facing shortages

The Spring Festival should be a critical moment for sellers to receive a surge in orders, but in South Korea, there is a situation where sellers receive express orders but are unable to sell the goods. What is the reason for this?

It is reported that after the fire at Daeyang Paper in South Korea in October last year , the shortage of raw materials and corrugated cardboard in the country lasted for more than three months. Due to the spread of the new coronavirus , the express delivery volume in South Korea hit a record high . Coupled with the upcoming Spring Festival , South Korea is now experiencing a serious shortage of express packaging cartons .

The papermaking industry said on January 27 that after the fire at Dayang Paper's Anshan factory, which is responsible for 7% of the domestic base paper production, raw materials were in short supply, the supply cost of base paper increased by 20-25%, and the price of corrugated cardboard also rose sharply.

Although prices have risen, demand has not decreased. Companies worried about shortages have bought more base paper and pre-ordered boxes in large quantities , causing the base paper shortage to increase to about 100,000 tons per month . It is reported that 100,000 tons accounts for 22.6% of the domestic corrugated paper production (440,000 tons per month).

In addition, the Ministry of Environment's ban on the import of mixed waste and restrictions on the import of waste cardboard will also become obstacles to market stability. A person in the papermaking industry said: "In order to meet domestic demand, imported waste paper is indispensable, and mixing with household waste paper can achieve the best effect. If exports are allowed but imports are prohibited, the supply will be tight."

The industry said it would increase raw paper imports as soon as possible and reduce exports to make up for the shortfall. However, due to a variety of factors, demand still exceeds supply.

Last week, the Korean Express Workers Union called off the strike and delivery returned to normal, but it remains unknown whether express delivery companies will abide by the agreement in the long term. If express delivery companies do not resolve the issues in accordance with the agreement, the strike may break out again. With the advent of the new year, the number of express deliveries has increased several times. If such a thing happens again, there may be a disruption in delivery.

The issue that South Korea should consider now is how to meet consumer demand and ensure the stable development of the express delivery industry when orders surge. If both issues can be resolved, then South Korean e-commerce will take a big step forward.

South Korea

Express Carton

strike