by Kary Radestock, Hippo Premium Packaging
26 August 2021
Despite reports of cannabis use being up sharply during the pandemic, all is not rosy for those in the industry. In fact, the coming months may be the toughest of all.
The same issues in the global supply chain that have affected multiple sectors, including technology, automotive, and consumer staples, is about to hit the cannabis industry. And it will hit hard.
Reports are coming out of China that packaging materials, plastic containers, and glass jars are soon going to require a 6-8 month lead time.
Compounding the issue, our nation’s ports are in near paralysis. There are currently about 3 dozen container ships are anchored off the ports of Los Angeles and Long Beach, where almost 1/3 of the nation’s goods are unloaded.
By the way, the normal number of container ships at anchor is between zero and one.
These ports operate as a primary source of imports from China and have been heavily congested for months. Some of the container ships have been waiting off the shore for weeks, pushing back delivery dates and driving up the cost of goods.
To make matters worse, the Chinese New Year, which typically slows down manufacturing and requires additional lead times, usually starts impacting customers around November or December. This year, customers are advised to get orders in as early as September or October for delivery in the first quarter of next year.
And the delays at California ports are just one of many factors impacting this global supply-chain crisis. Commodities and raw materials are become increasingly difficult to obtain, forcing manufacturers to reduce inventories.
Glass jar and plastic container manufacturers have been particularly hard hit, which has impacted a wide number of industries.
Burger King recently announced the upcoming debut of their new sandwich, only to have totemporarily delay the launch due to a pickle shortage. Actually, a pickle jar shortage. The fast food giant’s pickle supplier, Claussen, has been dealing with a lack of supply of glass jars used to package their products. In fact, the pickle company reported an eighty-eight percent drop in product availability due to glass jars.
However, there are some bright spots on the horizon, as well as some important ways to help mitigate this crisis.
First and foremost, cannabis companies that need packaging are urged to plan ahead... way ahead.
Secondly, some companies saw this crisis coming and invested in North American stocking programs, which helps guarantee shipments and cuts way down on delivery times. Duallok, which has an award-winning and patented child-resistant packaging system suitable for a variety of cannabis and CBD products, is one such company, and maintains inventory in both the U.S. and Canada.
Duallok is the first cannabis packaging system to win a GLOBAL PAC award, and can be tailored to house vape cartridges, vape pens, gummies, chocolates, pre-rolls, shatter, pharmaceuticals, and a variety of other products.
Hippo Premium Packaging has partnered with Duallok and has access to these U.S. inventoried packaging systems, which are currently available for immediate shipment to anywhere in North America within just a few days. We can make custom inserts, labels and sleeves, and give you beautiful custom packaging in just days...instead of months!
Finally, customers are urged to order in quantities that will last longer than usual. This is not a time you want to be down to your last few items before you think to reorder.
This supply chain crisis is real, but if you need packaging right away, call us and we’ll see if we can use our local inventory to get you out of a jam. Otherwise, please plan ahead...it’s going to be awhile before the global supply chains return to normal.