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Gaylord Journal · Buying

Buying boxes in January: the annual availability crunch

Used box supply follows industrial activity with a lag, and buyers tend to notice the gap at the same time. Why stock can run thin between Thanksgiving and February, and how to plan around it.
Published
January 23, 2024
Written by
ReGaylord Boxes
Reading time
8 minutes

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Key takeaways

  • Used box supply is a lagged copy of industrial activity — empties appear some weeks after the production that generated them.
  • A shortage tends to hit one specific item: the standard 48 × 40 × 36 five-wall in the better grades.
  • Half sizes, tall boxes and octabins are often easier to find, so flexibility on specification beats purchasing leverage in a tight month.
  • Late autumn is usually easier for availability, which makes it a sensible time to plan Q1 needs, and to sell an accumulation.

Every winter the same pattern repeats. A buyer who has found boxes easily all year cannot get the footprint they want, assumes the supplier is holding out for a better price, and is surprised to learn that supply really is thin.

Where used boxes come from

Used stock is not manufactured to demand. It arrives as a by-product of somebody else’s production. When plants run, containers empty and become available some weeks later, once they have accumulated enough to be worth collecting.

Which means the supply curve is a lagged copy of industrial activity. Late November and December involve short weeks, holiday shutdowns and inventory drawdowns rather than production. A few weeks later, in January, the empties that would have come from that activity do not exist.

A typical annual pattern, in general terms
PeriodSupplyDemandPractical effect
January – FebruaryOften lowOften highTight on standard footprints
March – MayRisingHighBalanced; a good time to start a new arrangement
June – AugustSteadyModerateUsually the widest choice of grades and sizes
September – OctoberHighVery highPeak-season buying competes with peak-season supply
NovemberHighModerateOften the best availability of the year
DecemberFallingLowQuiet, and a sensible time to plan January

This is a general pattern, not a forecast. Regions, industries and individual suppliers differ.

What actually runs short

Not everything, and that surprises people. Half sizes, tall boxes and octabins often stay easier to find because demand for them is thinner. The crunch tends to hit the standard 48 × 40 × 36 in five-wall and the better grades — precisely the box that most of the market wants.

If you can run a 34-inch height instead of 36, or a four-wall instead of five for a lighter load, a tight month matters much less. Flexibility on specification is worth more in January than any amount of purchasing leverage.

The three ways round it

  1. Plan early. Asking about stock in late autumn gives you more choice than asking in the middle of the shortage.
  2. Widen the specification. Describe the load and the stack height rather than only the box, and a supplier may be able to offer two or three footprints that work instead of one that does not.
  3. Be flexible on timing and grade. A wider window and a willingness to step down a cosmetic grade make a request much easier to fill.

If you are selling rather than buying

A tight month can be a good time to sell. When supply is thin, clean material is easier to place, and collection is often easier to schedule because other sites are quiet. An accumulation that has been sitting since autumn can be easier to move now than at other times of the year.

The longer pattern

Underneath the seasonal cycle, used box availability tracks manufacturing activity generally. When industrial output softens, empties tend to get scarcer some time later, because plants run fewer shifts and generate fewer containers. Buyers reading this in a strong year should plan for the year after — the lag is real and it catches people out.

Questions

Follow-ups on this post.

Does availability change through the year?
Yes, though it varies by region and supplier. Supply tends to tighten after the holiday slowdown and ease later in the year. Availability depends on partner suppliers, so describe your timing in the quote request and be as flexible as you can.
How far ahead should I plan?
As early as you can. Asking partner suppliers about stock several weeks before you need it gives you more options on size and grade than a last-minute request, and it costs nothing to ask.

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