<p><b>FBA Reports Slowing Shipments, Consumption</B>

A slowing economy translates into slowing demand for boxes used for packaging. Statistical information from many of the top paper-based associations are pointing to the declining schedules at many components of the paper industry.

Reflecting the steady decline in the paperboard industry, the most recent figures from the Fibre Box Association shows industry shipments of corrugated products declined by 0.5 percent for August, compared to figures the same time last year.

For the month shipments stand at 34.201 billion square feet. More ominous, the figures for the month pushed the average weekly shipments for the month down by 4.8 percent for the month.

The total shipments for the first eight months stand at 68.92 billion square feet, essentially unchanged from figures the same time last year.

The largest decline was seen in the West, which reported a 3.3 percent dip for the month, as well as a 0.5 percent drop for the first eight months of the year. The Northeast also realized a sharp decline for both the month and first eight months. For August shipments dropped by 2.4 percent, while shipments for the first eight months dropped an even sharper 2.8 percent.

Other regions and their shipment totals for the month and first eight months are the following: Southeast, up 1.8 percent for the month and up 1.7 percent the first eight months; East Central, for the month, although up 1.6 percent the first eight months; North Central, up 0.4 percent for the month and up 2 percent for the year to date; and the South Central, up 1.1 percent for the month and down 1.5 percent the first eight months.

The consumption of containerboard at domestic mills declined for both the month and first eight months, the FBA reports. For August consumption stands at 2.593 million tons, a 0.7 percent drop. For the first eight months consumption dipped by 0.1 percent to 20.572 million tons.

The inventory of containerboard at corrugator plants declined by 4.5 percent at the end of August, compare to the previous month. At the end of August the inventory level reached 2.590 million tons, compared to the previous month's figure of 2.712 million tons.

Further proof of the slowing demand for finished product was the sharp 12.2 percent jump in the weeks of supply on hand. At the end of August the supply level stands at 4.6 weeks, compared to the previous month's figure of 4.1 weeks of supply.