Business Impact

AF&PA Responds to Port Strike Suspension

JTiralla — Fri, 04 Oct 2024 00:02:45 +0000

AF&PA Responds to Port Strike Suspension

JTiralla Thu, 10/03/2024 - 20:02

WASHINGTON – The American Forest & Paper Association President and CEO Heidi Brock issued the following statement regarding the recent strike suspension of ILA workers across the U.S. East and Gulf Coast ports.

“We commend the ILA and USMX for agreeing to suspend this strike to avoid additional consequences for the U.S. economy and the manufacturing sector. We encourage both parties to come to a new agreement quickly to ensure essential ports operations remain open and avoid a second wave of disruption.”

Press Release

Business Impact

AF&PA Addresses Concerns Over Toilet Paper Shortages Amid Port Strike

CCozort — Thu, 03 Oct 2024 18:45:36 +0000

AF&PA Addresses Concerns Over Toilet Paper Shortages Amid Port Strike

CCozort Thu, 10/03/2024 - 14:45

WASHINGTON - The American Forest & Paper Association President and CEO Heidi Brock released the following statement regarding concern around toilet paper shortages in the U.S.:

“The American Forest & Paper Association is aware of reports of toilet paper shortages, which some have attributed to the current port strike. While we continue to urge the ILA and USMX to quickly bring an end to this strike to restore our members’ access to export their products, we would like to stress we are not aware of any expected impact to tissue product delivery in the U.S.

“Approximately 85% of tissue paper demand (which includes toilet paper, paper towels, napkins and facial tissue) in the U.S. is supplied by U.S. tissue producers.

“Rest assured, tissue products are being manufactured and shipped – just as they are 52 weeks each year.

"AF&PA members will continue to manufacture these essential products in the U.S and utilize rail and truck to ensure they reach shelves across the U.S.”

Press Release

Business Impact

Tissue

AF&PA Urges Swift End to Strike Threatening U.S. Economy and Manufacturing

CCozort — Tue, 01 Oct 2024 14:38:41 +0000

AF&PA Urges Swift End to Strike Threatening U.S. Economy and Manufacturing

CCozort Tue, 10/01/2024 - 10:38

WASHINGTON – The American Forest & Paper Association President and CEO Heidi Brock issued the following statement regarding the recent strike of ILA workers across the U.S. East and Gulf Coast ports.

“This strike will have serious consequences for the U.S. economy and the manufacturing sector, including industries like ours that rely heavily on port activity for exporting goods. Without access to ports, our member companies face tough choices, including whether to pause or shut down mills and facilities, putting high-paying jobs in rural areas at risk.

“We urge the Biden Administration to work with the ILA and USMX to quickly bring an end to this strike and restore essential ports operations.”

Press Release

Business Impact

Why Does the Price of Stamps Keep Increasing?

CCozort — Wed, 17 Jul 2024 19:46:39 +0000

Why Does the Price of Stamps Keep Increasing?

CCozort Wed, 07/17/2024 - 15:46

On July 14, 2024, the price of a first-class stamp increased from $.68 to $.73. This is the 6th rate hike since 2021. Postal rates are climbing faster than inflation.

But why? We explain why United States Postal Service (USPS) postal rates went up and what higher postal rates mean for the paper industry.

Breaking Down the USPS “Delivering for America Plan”

The Delivering for America Plan (DFA) was published in March of 2021 by Postmaster General Louis DeJoy. The goals for the plan were to:

Achieve financial stability;
Improve postal service; and
Reorganize key networks like delivery and processing.

It is important to note: As these goals were developed, stakeholder input was not solicited from those who rely on USPS – like the paper industry.

Understanding the Postal Service Reform Act of 2022

The bipartisan Postal Service Reform Act was signed into law in 2022, giving USPS $50 billion in relief of financial obligations and budget deficits. The legislation aimed to:

Increase financial stability for USPS;
Increase transparency;
Improve postal service; and Keep U.S. mail as a competitive option.

One of the provisions was mandating 6-day-a-week delivery for mail. However, the bill did not address postal rate uncertainty.

Are Postage Rate Increases Helping USPS?

The short answer is no. Through the DFA, USPS increased postage rates to help address financial challenges. Since 2021, postage rates have increased a record 6 times. In fact, postal rates have risen faster than inflation!

Meanwhile, USPS continues to suffer financial losses as well as service and operational issues. Here are a few examples:

Financial: In FY2023, they lost $6.5 billion. They are estimated to lose another $6.3 billion in FY 2024. The U.S. government’s fiscal year starts on October 1 and ends the following year on September 30.
Mail Volume Declines: Rate hikes have contributed to driving steep declines in mail volume. Mail volume is the total number of pieces of mail delivered. Annual volume since 2020 has declined by 13 billion pieces, or 10%.
Service: Just 83% of first-class mail was delivered on time in the beginning of 2024 compared to the DFA target of 95%. That’s the lowest service level in 3 years.

This is unsustainable for the Postal Service and those who rely on them for their business and communication, such as industries like ours and the families who live and work in our communities.

Postage Rate Hikes and Service Issues Affect the Paper Industry

USPS is an essential service to our industry and those who use our products, delivering approximately 39% - or nearly $6.5 billion worth - of communication papers produced in the U.S.

Things like:

Postcards;
Billing statements and promotional offers; and
Personal mail like a birthday card or letter to a friend or family member.

These rate hikes make mail less affordable, reduce on-time delivery service, and drive down mail volume. Our industry relies on USPS.

We need consistent and timely service, and postal rates that are predictable and affordable.

Update in Brief

Postal

Business Impact

EU Anti-Deforestation Law Explainer Handout

SManger — Wed, 05 Jun 2024 14:31:12 +0000

EU Anti-Deforestation Law Explainer Handout

SManger Wed, 06/05/2024 - 10:31

This handout explains key things to know about how the EU anti-deforestation law (EUDR) affects the U.S. pulp and paper industry.

Download

Why the EU Needs to Reconsider Their Deforestation Law

SManger — Wed, 29 May 2024 18:50:01 +0000

Why the EU Needs to Reconsider Their Deforestation Law

SManger Wed, 05/29/2024 - 14:50

Key Things to Know About How EUDR Affects the U.S. Pulp and Paper Industry

The European Union (EU) issued a new law in 2023 called the European Union Deforestation-Free Products Regulation (EUDR). The law is part of the comprehensive EU Green Deal.

EUDR aims to curb deforestation and forest degradation that could be linked to the import or export of certain commodities in the EU. We support what the EU is trying to achieve with their anti-deforestation law.

We have a long history of sustainable forest management. We also have a track record of success in environmental stewardship.

The U.S. pulp and paper industry is not linked to global deforestation and forest degradation.

However, as with all laws and regulations, details matter. EUDR, as currently written, imposes some unachievable requirements that create significant technical barriers, which risks trade between the EU and the U.S.

Let’s explore why the anti-deforestation law puts the U.S. pulp and paper industry at risk. We explain:

How a company complies with the law
Why the U.S. pulp paper industry does not contribute to deforestation and forest degradation
The complexity and impractical nature of the traceability requirement
Why the traceability requirement would disrupt trade
A workable solution to avoid trade disruptions

Download the EUDR Explainer Handout

What is the EU’s Deforestation Law?

The European Union Deforestation-Free Products Regulation went into effect in June of 2023. The law aims to fight global deforestation and forest degradation by regulating certain products entering or leaving the EU market.

This law is unprecedented because of the requirements it imposes to comply with the law.

It requires EU importers and exporters to prove their agricultural products are:

Deforestation and forest degradation-free after 2020
In compliance with country laws
Supported by a mandatory Due Diligence Statement and extensive accompanying data

Is Paper Included in EUDR?

60%

the amount of specialty pulp supply the U.S. ships to the EU

Yes. Wood and products made with wood fiber from trees are included in the law. For our industry, that includes:

Materials used to make a final product like pulp, printing paper, and packaging materials used to make items like cardboard boxes, cereal boxes and shoe boxes.
Final products like books, paper towels, diapers or medicine boxes.

U.S. forest product exports to the EU are valued at over $3.5 billion. The U.S. ships about 60% of the EU’s supply of specialty pulp that’s used to make things like diapers, menstrual and incontinence products.

^{Photo credit: Domtar}

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How Does a Company Comply with EUDR?

The EU’s deforestation law has multiple requirements companies must comply with. There are 3 key conditions to put products in or out of the EU marketplace:

Proof the products do not contribute to deforestation or forest degradation.
Product production follows the laws of the country where they are produced. That includes complying with:
1. Environmental protection regulations
2. Land-use rights
3. Forest management rules
4. Labor laws
5. Tax laws
6. Human rights laws
Every shipment is accompanied by a due diligence statement which includes comprehensive information:
1. Product trade name, description, name(s) of tree species, and quantity.
2. Geolocation of all plots of land from which the product originates, with time and date range of production.
3. Contact details of supplier and client d. Upload all data through an EU Central Information System

Companies and producers must comply starting December 30, 2024. Those not in compliance can be fined and have their products seized.

The U.S. Pulp and Paper Industry Does Not Contribute to Global Deforestation and Forest Degradation

1/3

of the U.S.
is forested

1 Billion +

trees are planted
each year in the U.S.

For 30 years

net forest area has
increased steadily

The U.S. pulp and paper industry is not linked to global deforestation and forest degradation.

Today, U.S. forests are stable, healthy and growing:

1/3 of the U.S. is forested.
More than 1 billion trees are planted each year.
The net forest area in the U.S. has increased steadily in the past 30 years.

Our industry is committed to sustainable forest management best practices including:

Forest certification programs to provide standards, guidelines and structure for sustainable forest management.
Fiber sourcing programs that are third-party verified and are recognized globally.

Additionally, AF&PA members adhere to sustainable fiber procurement principles as a condition of membership. Procurement is how our members get the wood they need to make the products we rely on

These principles assure the suppliers our members source wood from are committed to sustainable forest management and harvesting practices.

We also have a 2030 sustainability goal to advance more resilient U.S. forests. It’s part of our Better Practices, Better Planet 2030: Sustainable Products for a Sustainable Future initiative.

Our goal furthers our efforts by enhancing the diverse values forests provide. Things like water, carbon, biodiversity, recreation and forest products.

We’re doing this through:

Supporting conservation and restoration programs and initiatives
Engaging in partnerships and investing in research, outreach and education
Promoting sustainable forest management practices
Committing to increased supply chain transparency regarding responsible sourcing.

As part of Better Practices, Better Planet 2030, AF&PA members will also continue their commitment to procure wood fiber through certified sourcing.

Check Out an Award-Winning Member Forestry Project

Explore How Managed Forests Store Carbon

Dive Into our 2020 Forestry Goal Achievements

The EU’s Deforestation Law is Concerning for the U.S. Pulp and Paper Industry

What’s concerning for our industry is how EUDR will be implemented, especially EUDR’s strict geolocation traceability requirements. This requirement could pose technical trade barriers for U.S. companies based on our complex supply chain and fiber flow process.

Let’s break down the traceability requirement and why U.S. producers cannot currently comply with it.

What is the EUDR Traceability Requirement?

The EU’s deforestation law requires producers to trace each product shipment back to the specific real estate plots of land that is or could be linked to the shipment. That means providing the exact geographic location coordinates like those from a GPS.

In addition, each exporter must identify and provide contact information from the supply chain associated with each shipment. This is part of their due diligence obligations.

This may sound good in theory, but pulp and paper supply chains are complex.

Understanding How U.S. Pulp and Paper Supply Chains Work

40%

of wood input comes from leftover materials

In the U.S., more than half of forest land is owned and managed by an estimated 10.6 million private forest owners. These private forests provide about 90% of the wood to make forest products.

Our industry uses multiple wood inputs from these:

About 40% comes from leftover materials from a sawmill or forest residue. Forest residue includes branches, stumps, bark and more that are left over after a thinning or harvest.
About 60% comes from solid wood harvests.

Our use of leftover materials and forest residues is one of the ways we’re helping advance the circular economy.

The wood inputs used to make a single batch of pulp at a mill can come from multiple sources. This is called a fiber flow.

That’s because wood and wood chips mix throughout the supply chain including:

Initial storage of a log or leftover material
Chipping process at a saw, chip or pulp and paper mill
Chip pile at a pulp and paper mill
Pulping process
Paper machine

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U.S. Pulp and Paper Mills Cannot Comply with EUDR’s Unrealistic Traceability Requirement

No current

technology to trace fiber flow

The EUDR’s strict geolocation and traceability requirements pose significant challenges because of our industry’s complex supply chains.

The leftover materials from sawmills and forest residues our industry uses are regularly blended multiple times throughout the production process.

This makes tracing each individual wood chip from the original forest plot of land to a final product effectively impossible.

Additionally, the technology needed to trace our fiber flow to comply with this requirement does not currently exist.

The unachievable traceability requirement could cause major trade disruptions between the EU and the U.S.

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Trade Consequences of EUDR’s Traceability Requirement

The EU relies on pulp and paper imports from the U.S. We export around $3.5 billion worth of products to EU countries.

We also supply about 60% of the specialty pulp EU manufacturers use to make diapers, menstrual and incontinence products. The U.S. supplies 85% of the specialty pulp used globally.

EU manufacturers would not receive the supply of specialty pulp needed if U.S. pulp and paper manufacturers cannot overcome the technical barriers of the traceability requirement.

This would cause significant trade disruptions between the U.S. and the EU and disrupt the EU marketplace.

Developing a Workable Solution for the Challenges EUDR Poses to the U.S. Pulp and Paper Industry

We encourage the European Commission to consider the challenges EUDR poses for the U.S. pulp and paper industry to avoid major trade disruptions.

The U.S. pulp and paper industry is a responsible steward of our planet’s resources. We have long history of sustainable forest management and innovation.

The U.S. pulp and paper industry is not linked to global deforestation and forest degradation.

We are a strong proponent of international efforts to suppress deforestation and forest degradation. This is why we need to be considered a “low-risk” country.

That’s why we need a realistic solution that recognizes U.S. sustainable forestry management and will enable our producers to comply with the intent of the EU deforestation-free regulation without disrupting trade between the EU and the U.S.

We are not alone in our concerns with the implementation of EUDR:

The U.S. Congress has weighed in multiple times through bipartisan letters from both chambers:
- Members of the U.S. Senate urged the U.S. Trade Representative (USTR) to engage with the European Commission to gain clarity around the regulation’s requirements.
- Members of the U.S. House sent a letter to USTR.
The U.S. government called for a delay in a joint letter.
Multiple EU members called for a delay in implementation.
Other key members of the U.S. forest products industry value chain have asked the European Commission to delay the implementation.

We believe in balanced and achievable regulations. We welcome the opportunity to work together with EU regulators and other stakeholders in the implementation of EUDR.

Industry Explainer

Marketplace Sustainability

Business Impact

Sustainable Forestry

Pulp

Bipartisan Postal Service Reform Helps Ensure Sustainable USPS

TEbner — Wed, 06 Apr 2022 14:31:54 +0000

Bipartisan Postal Service Reform Helps Ensure Sustainable USPS

TEbner Wed, 04/06/2022 - 10:31

AF&PA encourages additional policy to provide rate certainty

CONTACT: Tim Ebner
(202) 463-2436, comm@afandpa.org

WASHINGTON – The American Forest & Paper Association (AF&PA) President and CEO Heidi Brock today released the following statement in response to President Joe Biden signing The Postal Service Reform Act into law:

“The Postal Service Reform Act is a historic step forward for the United States Postal Service (USPS). These bipartisan reforms come at a time when USPS plays a critical role for our nation’s communications and commerce.

“Millions of Americans across the country rely on timely and affordable mail and package delivery services. In 2020, USPS delivered approximately 39%, or nearly $6.5 billion worth of communications papers produced in the U.S. and delivered 7.3 billion parcels with paper-based packaging materials.

“However, this law does not address the issue of rate uncertainties for mailers. AF&PA encourages additional policy actions needed to provide rate certainty, like a rate cap consistent with the 2006 Postal Accountability and Enhancement Act.

“The Postal Reform Act, along with continued efforts, will help ensure a more sustainable future for USPS. It increases transparency, improves service and keeps U.S. mail as a competitive option in the 21st century.”

Press Release

Business Impact

Is There a Paper Ballot Shortage?

SManger — Tue, 29 Mar 2022 16:04:48 +0000

Is There a Paper Ballot Shortage?

SManger Tue, 03/29/2022 - 12:04

Some recent news reports have suggested a shortage of paper availability for paper ballots in advance of upcoming elections. We sat down with Terry Webber, AF&PA’s Vice President of Industry Affairs, to answer a few commonly asked questions about this important topic.

Terry, what is the current status of paper manufacturing?

First, demand for our sustainable paper products is strong. And our member companies have continued to deliver safe, sustainable, and essential products despite a range of challenges from supply chain disruptions to regulatory uncertainty.

Our industry remains committed to serving our customers, just as it has throughout the pandemic. Paper products continue to be manufactured 365 days a year, by a dedicated and essential workforce.

Can you talk more about specific challenges the industry is facing?

Absolutely. Our industry is responsive to the U.S. economy and our customers. For instance, with the rise in internet and digital technology, coupled with the rise in remote work, capacity changes have followed changes in demand.

And like all sectors of the economy, papermakers are dealing with challenges originating from the ongoing pandemic. This includes volatile demand for products, lack of inventory, physical space limitations, and lack of sufficient and efficient transportation options.

AF&PA members remain resilient and continue to work diligently and safely in creating sustainable paper products for our customers.

Graphic paper demand has also been declining over the last number of years. During the 10-year period prior to the pandemic, overall printing paper demand declined an average of 3.6% per year. For the types of paper used for paper ballots, the average demand reduction over the same period was 2.6%.

The pandemic in 2020 triggered an historic reduction in graphic paper demand, with overall printing paper demand declining 22.5% and uncoated paper demand reduced by 19%. Some companies respond to these marketplace shifts by shutting down operations, with others re-aligning capacity towards products that better fit their corporate objectives.

We’ve been seeing news articles in recent weeks citing specific concerns about the accessibility of paper for paper ballots. Should we be worried?

The short answer is, there is no reason to panic. It’s important, however, to acknowledge the supply chain challenges all sectors of the economy are facing. Whether you’re buying a car, a couch, or a new refrigerator, we’re all experiencing some level of delay in receiving products on our doorsteps.

It’s important to remember these short-term imbalances between supply and demand ultimately sort themselves out as buyers and sellers continue to communicate their mutual needs over the long-term.

The same can be said for paper ballots. Our message for election officials looking to procure paper ballots ahead of this year’s election cycle is this: Make your needs known as soon as possible to suppliers and printers, including the volume, timing, and type of paper needed. Continuous and open communications between paper suppliers and our customers will keep everyone apprised of changes in product availability or schedules.

But AF&PA members have paper mills in communities across the country. Why can’t they just make more paper?

That’s a great question. It’s not as easy as flipping a switch. As Covid restrictions have eased, we have seen demand for all paper products increase. Year-to-date shipments of printing papers in 2022 have increased 2.8% relative to the same period last year, and the rate of daily shipments of uncoated papers has steadily risen to the highest level since last August.

Paper machines are already running at full capacity. To enable new capacity involves new equipment, a skilled workforce, and securing raw materials and transportation needed to move products from mills to customers. It takes time and adding significant capacity can take years.

So, paper ballots will be available to me on election day?

AF&PA’s members continue to make paper to support customer needs, including paper ballots, which are critical to U.S. elections. Paper offers reliability and security, provides a permanent record, and offers a level of control – including for some sensitive information. For example, physical paper ballots can be counted again in case anything happens to electronic voting tabulation systems.

I would reiterate it is important for election officials to contact their suppliers and printers to make their needs known as early as possible. Timelines for volume, type of paper, and delivery could be different this year than in previous elections cycles, given the supply chain challenges I previously mentioned.

The bottom line is we want consumers to use our essential and sustainable paper products. Our member companies have and will continue to work with their customers to ensure their needs are met.

Industry Explainer

Business Impact

Paper

AF&PA Supports Bipartisan Postal Service Reform

TEbner — Tue, 08 Feb 2022 20:13:11 +0000

AF&PA Supports Bipartisan Postal Service Reform

TEbner Tue, 02/08/2022 - 15:13

CONTACT: Tim Ebner
comm@afandpa.org

WASHINGTON – The American Forest & Paper Association (AF&PA) President and CEO Heidi Brock released the following statement in response to House passage of The Postal Service Reform Act (H.R. 3076):

“The American Forest & Paper Association supports comprehensive and bipartisan solutions to ensure the long-term financial stability of the United States Postal Service (USPS). Passage of the Postal Service Reform Act in the U.S. House of Representatives is a step in the right direction. This legislation will move the USPS on a path to better financial footing and remain a competitive choice in the 21st century. Although the bill does not address rate uncertainties, this legislation does make significant strides to improve USPS operations. We welcome additional policy to provide rate certainty, similar to the rate cap included in the 2006 Postal Accountability and Enhancement Act.

“USPS plays a critical role for our nation’s communications and commerce. Americans and businesses across the country depend on timely and affordable mail and package delivery services. In 2020, USPS delivered approximately 39 percent, or nearly $6.5 billion worth of communications papers produced in the U.S. and delivered 7.3 billion parcels with paper-based packaging materials.

“These reforms will increase transparency, improve service and advance the Postal Service towards a more sustainable future. We encourage the U.S. Senate to take up this important legislation and send it to President Biden’s desk.”

Press Release

Postal

Business Impact

AF&PA Supports U.S. Department of Commerce’s Final Determinations in Circumvention Inquiries on Uncoated Paper

TEbner — Mon, 20 Dec 2021 14:46:13 +0000

AF&PA Supports U.S. Department of Commerce’s Final Determinations in Circumvention Inquiries on Uncoated Paper

TEbner Mon, 12/20/2021 - 09:46

CONTACT: Tim Ebner
(202) 463-2436, comm@afandpa.org

WASHINGTON – The American Forest & Paper Association (AF&PA) President and CEO Heidi Brock issued the following statement supporting final determinations issued by the U.S. Department of Commerce in response to petitions filed by U.S. manufacturers and the United Steelworkers. The U.S. Department of Commerce found that certain uncoated paper rolls from Brazil, China and Indonesia are circumventing antidumping duty orders and that imports of certain uncoated paper rolls from China and Indonesia are circumventing countervailing duty orders.

“AF&PA supports the U.S. Department of Commerce in its final determinations involving Brazil, China and Indonesia. These final determinations ensure that foreign producers do not circumvent the payment of anti-dumping and anti-subsidy duties on uncoated free sheet paper in sheet form in place since 2016 by importing rolls into the U.S. that are then converted into sheet form.

“The federal government has used a transparent and impartial process to enforce free and fair trade laws. The U.S. paper industry also operates in a highly competitive global market. Government enforcement of domestic and international trade rules is important to safeguard the health of the U.S. paper industry and for markets to function properly.

“The forest products industry is critical to our nation’s economic success. This is an industry that accounts for approximately four percent of the total U.S. manufacturing GDP and employs approximately 950,000 people. We look forward to working with the Administration, Congress and other policymakers to continue to advance our sustainable products for a sustainable future.”