Corrugated IBCs--Not just boxes
By Staff -- Purchasing, 3/11/1999
Though they appear to be simply big, cardboard boxes in many cases, corrugated intermediate bulk containers (IBCs) continue to be highly valued, cost-effective bulk containers for many shippers. Prices for corrugated IBCs look stable for 1999, even as demand improves for the product and customers increasingly examine their use for transporting hazardous materials.Corrugated intermediate bulk containers (IBCs) are most often multiply corrugated paper containers with polyethylene liners inside. They are used to store or transport solids or liquids, and some models are approved for use with hazardous materials. Several models are U.N.- and DOT-approved for packaging group II and III hazardous solids. Other models are designed for non-hazardous liquids.
Despite the authorizations, some buyers are wary to ship in corrugated IBCs. Suppliers are determined to change buyers' minds.
One benefit of corrugated IBCs is price. They are inexpensive compared to other bulk containers. Another benefit is that they hold the types of volume associated with IBCs, but remain a one-way container. While many buyers seek out returnable and reusable packaging, there remain many others whose distribution channels aren't suited for containers to come back.
Other benefits of corrugated IBCs include light weight, disposability, and strength through design. "For many applications, corrugated packaging remains the package of choice due to it's user friendliness and low cost," says Harry Garton, marketing manager of bulk packaging for Georgia-Pacific. "Prior to use, corrugated bulk containers are stored knocked down making good use of available storage space. Low tare weights and high container strength combine to make corrugated bulk packaging ideally suited to one-way product shipment."
But there are some drawbacks, too. Although strong, the IBCs will bulge with long-term storage and become unsafe to stack. If the box is used internally only, it may have a long life. But a corrugated IBC shipped with heavy materials may not.
Recycling options
Corrugated IBCs are most often not intended for reuse. If the box is used for non-hazardous materials, then both the box and the bag inside are recyclable. Corrugated recycling takes up about 73% of corrugated produced, and turns it into new paper.
Georgia Pacific has its own recycling division. "We have the means and motivation to get the paper back to our mills," says Garton. ""When economically feasible, we make an effort to get our customer's containers back for recycling. Typically we'll work with logistics resources at our customers, and with actual end-users and try to create a reclamation plan to return this fiber back to our mills."
New corrugated IBCs
Use of corrugated IBCs continue to grow in several markets--food processing, chemicals, lubricants, adhesives, inks, and surfactants. And producers are still coming forward with new designs. Macmillian Blodel offers Spacekraft I for non-hazardous liquids, and Spacekraft II for solids, which is approved for Groups II and III hazardous solids. Macmillan Blodel also is introducing the Ultracube in conjunction with Van Leer Containers. This IBC has a blow-molded polyethylene bottle inside the corrugated sleeve, instead of a bag. This has the advantage of additional strength and the ability of the bottle to be used more than once. "It can be both a one-way container and a reusable container at the same time," says Rich Daly, sales engineer for Macmillan Blodel. "The corrugated sleeve can be removed and recycled, and the bottle itself can be used again."
Demand was good in '98, but IBCs suffered some from Asian economic fallout-- especially from the Asian plastics markets.
Prices stable for '99
Since corrugated IBCs are sold on their cost advantage, suppliers are driven to keep their prices low. "We try to stick to a price, and re-evaluate it on an 18-month basis," says Daly at Macmillan Blodel. "I don't see any change ahead--no erosion, no increase."
The containers often follow a more stable price course than the sometimes wild fluctuations of the corrugated paper market. "We're not selling a paper box, we're selling a technology," says Daly. But raw-material prices do have some impact. "Price forecasts look firm through mid-year for paper prices." says one producer. "With continued export demand, prices should firm up mid-year. There may be some price inflation late in the year."
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