Packaging costs on the rise

ELMWOOD PARK, NJ— Packaging manufacturer Sealed Air is hiking prices by between three and eight percent for North American customers of its Food Care and product Care divisions. The company says it is responding to the continued escalation of its key raw materials and other input costs, in particular polyethylene, nylon and benzene.

The increases are as follows for 2014:

• Eight percent increase on food packaging trays, effective February 3
• Five percent increase on paper packaging systems, effective March 1
• Five- to eight-percent increase on other protective packaging products, effective March 1
• Three and a half percent increase on Food Care hygiene solutions, effective March 3
• Four-to-six percent on Food Care bags and rollstock, effective March 24

“As our raw materials costs continue to rise in 2014, we will remain steadfast to a pricing strategy to recover these costs. In 2014 alone, suppliers of polyethylene (PE), nylon, and benzene, large inputs to our products, have announced significant price increases on top of significant increases in 2013.  Most recently in North America, PE suppliers announced price increases of $0.04 effective February 1, 2014, with further announced increases March 1, 2014. To date these increases range between 21 percent and 28 percent since January 1, 2013.  Benzene prices have increased 25 percent over the past three months and nylon is increasing $0.10 or 6 percent,” said Jerome Peribere, president and CEO of Sealed Air in a statement.