The geopolitical situation in the Middle East has changed rapidly in recent days. While the human impact of conflict is clearly the most important concern, events like this can also raise practical questions for businesses relying on global supply chains.

Many of our customers are understandably asking the same question:

“What does this mean for packaging supply?”

Current Position: No Manufacturing Disruption

One of the first steps we took at PurePac was to speak directly with our key manufacturing partners across the UK and Europe.

At the time of writing, no supply chain disruption is being reported and production continues as normal. However, the situation is evolving quickly, and we are maintaining close contact with suppliers as developments unfold.

The Key Risk: Crude Oil Supply

One of the most important factors for the packaging industry is crude oil availability.

Crude oil is a key component in the production of polymers used in plastic packaging. Any disruption to global oil supply can therefore affect both material availability and manufacturing costs.

Many manufacturers already source crude oil from regions such as Norway, Canada and the United States, which provides some resilience. However, if global supply tightens, the industry could begin to feel pressure on both pricing and availability.

Immediate Impact: Fuel Costs

While manufacturing remains stable for now, the more immediate challenge we are seeing is transportation costs.

Commercial diesel and oil prices have risen sharply over the past week, with a 33.6% increase in fuel costs compared to the previous week.

We have spoken with multiple suppliers and fuel providers, all of whom are reporting similar increases, with indications that prices may continue rising over the coming days.

Pallet networks and haulage partners have already announced fuel surcharges effective from the 16th of March.

Due to the speed and scale of these increases, PurePac will also need to introduce fuel surcharges from next week.

Looking Ahead

The duration and wider impact of the conflict remain uncertain.

If the situation continues over the coming weeks, the packaging industry may begin to see further pressure across supply chains, including:

  • Crude oil availability affecting polymer production
  • Increases in raw material costs
  • Rising energy prices, particularly gas
  • Further increases in transportation costs

At PurePac our focus remains on maintaining supply continuity, communicating early with customers and responding quickly to changes in the market.

We will continue to monitor developments closely and provide updates as the situation evolves. In the meantime, if you have any questions about this update – please do get in touch and contact us at: info@purepac.co.uk