PCA has proposed a $140-per-ton increase as capacity cuts tighten North American containerboard supply despite subdued corrugated box demand.
North American containerboard producers are seeking another round of price increases, putting further pressure on corrugated packaging costs as the market absorbs substantial capacity reductions.
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Packaging Corporation of America (PCA) has proposed a $140-per-ton increase for linerboard and corrugating medium from 1 September. This follows increases totalling about $100 per ton during the first half of 2026, according to Fastmarkets.
International Paper subsequently announced an $80-per-ton increase, while Smurfit Westrock proposed a $100-per-ton rise. Cascades announced increases of $110 per ton for linerboard and white-top linerboard and $140 per ton for corrugating medium, effective 8 September.
Georgia-Pacific, ND Paper and White Birch Paper are among other producers seeking September increases.
If fully implemented, the latest round would take the cumulative increase in North American linerboard prices to about $240 per ton within seven months, according to Fastmarkets.
Capacity cuts tighten supply
The price increases follow a substantial reduction in US containerboard manufacturing capacity.
Fastmarkets estimates that approximately 3.9 million tons of US containerboard capacity was permanently removed between February 2025 and March 2026. That represents roughly 10% of total capacity.
The cuts have tightened the balance between supply and demand. Mill order backlogs were around five to six weeks in August, according to Fastmarkets, while some kraft linerboard backlogs extended to eight weeks.
This tighter supply has emerged despite relatively subdued demand for corrugated boxes.
US box shipments fell 1.8% year on year in the first quarter, Fastmarkets reported in May. The figures suggest that reduced supply is an important factor in the current pricing environment, rather than a sharp increase in demand for corrugated packaging.
For corrugated converters and their customers, that means higher material costs without a corresponding increase in packaging volumes.
Fibre and transport costs add pressure
Higher input and logistics costs are adding to the pressure on packaging producers.
Prices for old corrugated containers (OCC), a major recovered-fibre input for recycled containerboard, increased during the first half of 2026. Fastmarkets reported a further $5–$10-per-short-ton increase in US OCC prices in June.
Transport costs have also risen, increasing the cost of moving recovered fibre and finished packaging products.
These higher costs are adding to the pressure created by reduced containerboard capacity, making procurement more challenging for corrugated packaging manufacturers and their customers.
Earlier increases still reaching buyers
Packaging buyers could also be absorbing the effects of earlier containerboard increases as producers seek to implement the latest round.
PCA CFO Kent Pflederer said during the company’s July earnings call that most of the first price increase was expected to flow through in the third quarter, with most of the second increase reflected in the fourth quarter.
This lag means buyers could be dealing with the effects of earlier increases while the latest proposals are being negotiated or implemented.
For consumer packaged goods companies, retailers and other high-volume users of corrugated packaging, higher containerboard prices can increase packaging procurement costs and the cost of distributing finished products.
Packaging buyers question increases
The scale of the latest proposed increases has been challenged by independent packaging companies.
AICC, the Independent Packaging Association, has questioned whether current market conditions justify a third round of increases and disputed the timing and scale of the proposals.
The disagreement highlights uncertainty over how much of the announced increases will ultimately be reflected in market prices.
Subdued box shipments add to that uncertainty. While capacity reductions have tightened supply, demand has not risen sharply enough to provide a straightforward demand-led explanation for the scale of the latest proposals.
Global market remains oversupplied
The tighter North American market contrasts with an oversupplied global containerboard market.
Fastmarkets’ 2026 outlook estimated global containerboard overcapacity at approximately 23 million tonnes, with Asia accounting for about 70% of the excess capacity.
The divergence highlights the regional nature of containerboard pricing. Capacity reductions can tighten supply in one market while new production capacity creates a surplus elsewhere.
For multinational packaging buyers, global excess capacity therefore does not necessarily translate into lower local prices. Mill capacity, freight costs, recovered-fibre availability and regional demand can have a greater influence on corrugated packaging costs.
With approximately 3.9 million tons of US capacity permanently removed and further containerboard price increases taking effect or under negotiation, packaging producers and buyers face continued cost uncertainty through the remainder of 2026.
