Canadian Wood Packaging Bilateral Agreement Update

Update on Canadian Wood Packaging Bilateral Agreement

The USDA reported discussions continue on when the WPM bi-lateral agreement between the U.S.A. and Canada should be dissolved. At this point, an agreement is not expected before the end of this year. Since both parties agree that there should be at least a one year transition period before full implementation should occur, the soonest this could happen is January of 2015. 

Source: Timber Products Inspection, Inc. 

Weatherproof Corrugated Crate Boxes Save Parts Distributor Time and Money

Problem:

An international distributor of heavy equipment parts is forced to purchase wood Nefab crates due to a requirement to store product outdoors.  The wood crates are expensive and difficult to assemble.

 

Nefab boxes with required hardware.

Eco-Shield boxes require no hardware





















  



Solution:

Ox Box designs and manufactures economical Eco-Shield corrugated crate boxes.  The Eco-Shield crates are weatherproof, extremely strong, and easy to assemble.  New technology that incorporates plastic from recycled water bottles enables the corrugated material to withstand exposure to the elements.  Stacking strength of the Eco-Shield crates exceed 1000 lbs.  Designed for quick assembly, the Eco-Shield crate boxes enable the distributor to pack and ship efficiently.  In addition, the Eco-Shield crates are recyclable.      

Benefits:
* Eco-Shield crate boxes save money.  Fraction of the cost of expensive wood crates.
* Eco-Shield crate boxes reduce packing time and increase output.
* Lightweight to reduce shipping costs.
* Eco-Shield is recyclable with other corrugated materials.

Click here for Eco-Shield product information.



Eco-Shield Weatherproof Crate Boxes

Kiln Dried vs. Heat Treated Wood Packing Materials

The term "kiln dried" relates to the moisture content of wood which is typically defined as 19% or below. The term "Heat treated" relates to the core temperature of wood which needs to reach a minimum 133° F for at least 30 minutes in a controlled environment (i.e. a heat chamber or kiln). It is important to realize that wood used in the manufacture of WPM and WPM itself can meet one specification but not the other. If moisture content is the only concern, this can be reached without the required temperature needed to be considered heat treated. Likewise WPM can be heat treated but this process may not allow the wood to reach the minimum moisture content to be considered kiln dried. If you see wood or WPM marked with the term "KD-HT" this means it has met the requirements for both kiln drying (19% or below MC) and heat treating (133° F minimum for at least 30 minutes).

Note: The 133° F temperature can only be used after a verification study is completed on the heat chamber and thermocouples must be calibrated annually. Most facilities operate at 140° F thereby avoiding the above requirements. See ALSC WPM Enforcement Regulations 8.a 2  for more information.

Source: Timber Products Inspection, Inc.

Containerboard Price Hikes Appear Imminent

A few months back, we didn’t expect to be talking about an autumn price

initiative. But, . . . here we go. Over the next several days, DB believes we

could hear about containerboard price hike announcements in the $40-60/ton

range. Since industry convention is to provide 30 days notice, July

announcements would allow producers to begin raising prices before Labor

Day, taking advantage of a seasonal pick-up in the market. For the record, we

are not including any H2 increase in our earnings estimates. Any success

would be upside to our existing numbers.

The expected initiatives appear largely driven by tighter supplies. During April

and May, the industry reduced containerboard inventories by nearly 200K/tons.

Levels are now at historically lean levels. From a demand standpoint, producer

& broker contacts are reporting surprisingly strong order backlogs with

delivery dates now stretching into later half of August. Industry contacts are

also noting: (1) willingness by independent converters to accept a

containerboard hike in order to raise box prices & restore margins, (2)

completion of International Paper’s acquisition of Temple-Inland and the

subsequent DOJ-mandated disposal of 3 containerboard mills, and (3) Rock-

Tenn’s mid-2011 acquisition of Smurfit-Stone.
Source: Mark Wilde Research Analyst, Debbie Jones Research Analyst - Deutshe Bank Market Researh

Triple-wall Shipping Kits Provide Automotive Component Manufacturer Export Solution

Problem:
A manufacturer of automotive components is challenged to ship parts safely and economically to Europe.  Automotive customer requires:
* Safe overseas transit of delicate parts
* No corrosion on parts
* Packaging to accommodate special ergonomic requirements for loading and unloading
* Minimal space for packaging
   at work center
   in storage
* Minimal expense
   maximize part density per box
   maximize boxes per sea container

Solution:
Ox Box designs a triple-wall shipping kit with a partition system and anti-corrosive materials to contain and protect the sensitive automotive components from the harsh environment of overseas shipping.  The shipping kits are constructed of durable materials to provide outstanding product protection.  The addition of VCI anti-corrosive materials prevents the parts from corrosion.  The shipping kits are delivered self-contained to keep packaging storage area to a minimum.  The partitioning system is designed to maximize the number of parts per box and the shipping kit is designed to maximize the number of loaded boxes per sea container.

Benefits:
* Product arrives undamaged to European automotive customer.
* Parts remain free from corrosion.
* Shipping kits accommodate special ergonomic loading and unloading requirements.
* Self-contained design minimizes space requirements for packaging at the work centers and in storage.
* Maximizing parts per box minimizes packaging expense.
* Maximizing boxes per sea container minimizes shipping expense.

Export Packaging Update

Storing Wood Packaging Materials Outside

There  have been  many questions lately regarding whether treated WPM can be stored outside. There are currently no regulations in place restricting where treated WPM can be stored. However exposing WPM to the elements can create post treatment issues that are undesirable to customers. It is recommended that:  

• The treated WPM be kept off the ground.
• The surrounding area be treated by pest control professionals.
• The ALSC regulation for keeping untreated products seperate from treated WPM be strictly enforced.

This will help to keep your ISPM 15 conforming WPM safe from undesirable pests.

Source: Timber Products Inspection, Inc.

Ox Box Reusable Bulk Bins Save Retailer Space and Money

Problem:
National retailer is challenged to stage shipments at distribution facilities efficiently and maximize space in trailers to transport products to retail locations.  Past methods required products to be picked for delivery and placed on wooden pallets.  Palletized loads could not be stacked resulting in a large loss of warehouse space and trailers shipping at a fraction of capacity.  

Solution:
Ox Box reusable shipping and storage bins allow products to be picked and placed directly into the bins.  Distribution facility space to stage product for delivery is reduced by 66% due to the fact that the bins are designed to be safely stacked three high when loaded with products.  The ability to stack the loaded bins reduces trailer space and shipping expense by over 50%.  The bin sidewalls knock down flat and the pallet/covers nest to minimize space to transport and store bins when not in use.  The bins are made from durable plastic materials for years of service.

Benefits:
* 66% reduction in required distribution product staging area.
* 50% reduction in trailer space and shipping expense.
* Knock down flat for shipping and storage.
* Durable construction for long term use.



Bins knock down flat for shipping and storage.