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Old July 4, 2006   #72
clevelandguy
Tomatovillian™
 
Join Date: Jul 2006
Location: Cleveland, OH Z6
Posts: 1
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Plastic container/tote prices are going up because of the cost of crude oil. Almost all plastics are derived from petroleum products, so if gasoline prices rise, so do plastic prices.

That's why containers/totes seem to be getting flimsier. Tote manufacturer's are using thinner wall thicknesses to conserve plastic in hopes of keeping costs down to appease Wal-Mart.

Rubbermaid lost its Wal-Mart business because Rubbermaid refused to absorb plastic resin prices that had doubled in 1 year. Wal-Mart refused any price increases in Rubbermaid products, and told them to hit the road.

Almost all LARGE plastic containers/totes that you see in stores, whether they are Rubbermaid, Sterilite, Sunshine, Cornerstone, ect. are still MADE in the USA. It costs too much to ship them in from overseas. Imagine how few totes it would take to fill up an overseas container. The going rate for a container from China to the port of Los Angeles is currently $14,000.00.

The collateral damage caused by Wal-Mart not agreeing to price increases caused by the rising cost of plastic raw materials was felt far and wide. Because Wal-Mart refused price increases, Target, Home Depot, and the other big box stores followed suit. This deciamated the USA plastics industry and caused hundreds if not thousands of companies to go belly up.
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