The rise in FIBC usage is down to many factors. For one, growing international trade and more exports between countries have led to a huge demand for reliable bulk packaging solutions. Additionally, FIBC usage has seen a significant upswing in certain markets. It’s becoming the go-to option for healthcare packaging, while the unending e-commerce boom depends heavily on FIBCs.
However, this increased usage of FIBCs has only highlighted market fluctuations. Limited availability of raw materials and rising energy costs have both led to rising prices. Meanwhile, insatiable demand for FIBCs and supply chain uncertainty are also driving costs upwards.
The biggest single factor driving the cost of bulk bags is the availability of raw materials. Every component of an FIBC, from the fabric used to make the siding to the thread used to stitch seams, is made from petroleum-based materials. When these raw materials are in short supply, costs can skyrocket.
Oil availability and market prices have a direct impact on the cost of materials used to commonly make FIBCs and bulk packaging, such as polyethylene and polypropylene. What’s more, rising energy costs can send the cost of manufacturing FIBCs soaring.
Freight and shipping costs contribute a significant amount to the overall cost of FIBCs. These costs are even more pronounced when there’s a shortage of available ocean and over-the-road freight, leading to shipping bottlenecks.
Regulatory compliance is yet another contributing factor that can lead to the rising cost of FIBCs. In certain industries and for specific applications, only FIBCs made from virgin materials are acceptable. This means companies need to be prepared to pay a premium for FIBCs.
Environmental concerns are another consideration. As more companies repivot to operate more sustainably, eco-friendly bulk packaging is in high demand. While solutions like recycled FIBCs are generally more cost-effective than containers made from virgin materials, costs can increase when demand is high.
Concerned that you’re spending too much on FIBCs? The good news is that are several ways you can quickly reduce costs, without compromising on your bulk packaging requirements.
If you want to make considerable savings on FIBCs, make sure you’re partnering with a reputable supplier that offers competitive pricing. More importantly, you’ll want a supplier that offers fixed quotes and stable pricing. This way, even if changes in market conditions lead to an upswing in costs, the financial impact to you will be negligible.
One of the easiest ways to control the purchase costs of FIBCs is to start taking inventory control seriously. In many industries, FIBCs can be used many times before needing to be recycled or replaced. If you’re using containers in a reusable closed-loop system, ensure you’re regularly inspecting the condition of your FIBCs to determine exactly how many you have in circulation that are fit for purpose. This way, you’ll never be in a situation where your stocks run too low or you end up overbuying unnecessary containers.
FIBCs are only cost-effective if you’re using the right bulk packaging for your needs. Ensure you’ve taken stock of your operation and intended applications before ordering FIBCs. Looking for general-purpose containers for material handling and storage? Inexpensive open-top FIBCs are a smart choice. Are you handling finer, more expensive materials? Rather than waste money on unsuitable open-top containers, you’ll want to invest in FIBCs with spout-style tops instead.
You’ll also need to think about factors like electrostatic classification. For general use, Type A bags are ideal and a relatively inexpensive choice. However, for more demanding applications, Type B, C, or D bags may be necessary. Save yourself the expense of having to order different bag types after the fact by establishing your requirements early.
From agriculture to construction, there’s a growing appetite for sustainable business practices across just about every sector. FIBC can play a key role in the sustainability of operations. While the hard-wearing design and reusable nature of FIBCs already make them an environmentally sound choice, innovations in FIBC design and new production methods are allowing companies to enhance their eco-friendly credentials.
As recycling processes and technologies advance, there’s less of a focus on virgin materials in the construction of FIBCs. Today, the likes of polypropylene (PP) can be readily recycled, leading to bulk containers made from a significant amount of repurposed material. As well as being an obvious win for companies looking to reduce their carbon footprint, recycled FIBCs are typically cheaper. Costs are expected to go down even further as recycling processes are refined.
Sustainable packaging like recycled FIBCs also offers a solution during times of market uncertainty and limited availability. When the raw material used to produce new FIBCs is in short supply, recycled bags provide a cost-effective and readily available alternative.
Are you searching for high-quality FIBCs from a supplier you can trust? It’s time to see what Codefine can offer you. Leading the way in bulk packaging solutions since 1957, Codefine stand as innovators in the FIBC market, with a keen focus on sustainability and innovation. If you’re keen to bring down costs without having to make sacrifices when it comes to quality and performance, we’re the obvious choice.
You can explore our full range of FIBC bags online today or alternatively take a look at our complete collection of bulk packaging products. Need to discuss your requirements in more detail or arrange a quote? Get in touch with the team today.
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