Corrugated IBCs move into hazardous territory
By Staff -- Purchasing, 3/12/1998
Corrugated containers are pushing further into non-traditional markets--including the bulk transport of hazardous materials. Many buyers, however, still are not convinced. Customer reluctance to put large volumes of chemicals into corrugated containers is understandable, but corrugated IBC manufacturers are confident the benefits, which include light weight and easy disposability, can change buyers' minds. Producers also stress that the containers are designed to be both strong and safe.Corrugated IBCs are constructed of multi-ply corrugated paper with polyethylene liners. They can be used to store or transport some liquids and solids. Even hazardous materials can be put into these containers. Several corrugated IBCs are authorized for use under U.N. specifications for packaging group II and III materials and meet the Department of Transportation's (DOT) HM-181 performance oriented packaging requirements. Many models also are suited for non-hazardous liquids.
Corrugated IBCs most often are used to ship non-hazardous solids such as chemicals and food products. They are not intended for reuse, and instead are one-trip containers. Therefore, their disposability is key. If the box is used for non-hazardous materials, then both the box and the bag inside are recyclable.
Most buyers who turn to corrugated IBCs are looking to get away from drums, and hope to free up warehouse space and save on shipping costs. Drums take up a lot of space. Corrugated IBCs ship and store knocked-down and empty, saving inbound freight and warehousing costs.
There are, however, some significant drawbacks to corrugated IBCs. One is that the containers need to be assembled by the user. If a customer is not set up to put the IBCs together, it can be an enormous headache. "For a small user, the price may be attractive, but logistics are a real problem," says one container distributor. Also: Buyers looking for a reusable fleet of containers, or those who ship hazardous liquids, have to look elsewhere. The best bet for corrugated IBCs may be to replace fiber drums and smaller corrugated packages. A major market for corrugated IBCs is the food and beverage industry.
Another drawback to corrugated IBCs is their strength over time. A corrugated container's lifespan depends greatly on what it holds. Heavy material will take its toll. Over time, a corrugated IBC will bulge, becoming unsafe.
Corrugated IBCs are sold mainly on price, so suppliers are driven to keep prices low. The competition among bulk-container producers is fierce, and buyers can quickly turn elsewhere if prices are not appropriate.
Still, the price of raw materials has a significant impact, and the picture is not looking that good for corrugated. For example: Tags for corrugating medium (semichemical) rose sharply in the second half of 1997, up from $225/ton in the second quarter to $278/ton in the third. Prices jumped again in the fourth quarter--up to $347/ton, according to Purchasing's transaction price survey. There is not much relief ahead either--prices are forecast to climb to $360/ton for the first half of 1998, dipping only slightly in the second half of the year to $350/ton.
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