Over the last few weeks companies in the plastic packaging industry have presented full order books, and the prognosis for the third quarter, according to the Industrievereinigung Kunststoffverpackungen e.V. (IK) economic cycle trend, is promising overall. The industry is, however, less satisfied with the disproportionately high cost of raw materials as well as the shortage of certain primary materials. The IK establishes that the clients of plastic packaging producers have lost their patience with the current situation.

It appears to be the numerable force majeure notifications which have worsened the strained situation over the last six months. The IK, however, does not feel that the wording of some of the notifications regarding this matter always meet the requirements for a force majeure.

European jurisprudence defines the term force majeure very narrow. According to this definition the situation has to have an exterior cause, an „act of God“. A mere assertion of technical problems with the equipment is not sufficient. If primary products fail to be delivered this is in general not classed as force majeure unless the failure of delivery is caused by an act of God. In these cases the responsibility lies unequivocally with the preliminary supplier, and the IK indicates that commercial due diligence requires precautionary measures to be taken, for example contingency plans or the availability of storage facilities.

In the last few decades German and European processing industries have had considerable influence over the sales results of raw material providers due to their high innovation potential and growing market presence.

This hitherto successful co-operation based on partnership is to continue in the same manner in the future. From the perspective of the IK this warrants a far-reaching safe supply chain throughout the raw material industry on top of ensuring stable raw material prices.