BIR Paper Division Highlights Logistics and Regulatory Challenges at World Recycling Convention 2026

Industry speakers discuss shipping disruptions, EU waste shipment rules, market trends and the role of logistics during the Gothenburg side session.

The BIR Paper Division held a side session during the BIR World Recycling Convention & Exhibition in Gothenburg on June 1, where industry representatives discussed logistics, regulatory developments and global market trends affecting the recovered paper industry.

Opening the session, Francisco Donoso, President of the BIR Paper Division and DOLAF Servicios Verdes SL, Spain, said the recovered paper sector continues to face challenges while evolving alongside growing demand for sustainable raw materials and circular economy solutions.

Shipping and Logistics in Focus

Marc Ehrlich, CEO of Vipa Group, Switzerland, and Asa Demme, Head of Integrated Sales for the Swedish market at Maersk, discussed the role of shipping in the recovered paper supply chain.

Mr Ehrlich said recovered paper should be regarded as a raw material for the paper industry rather than waste and explained that empty containers returning from Europe and the United States to Asia are used to transport recovered paper for reuse in packaging production.

He also highlighted concerns surrounding the Strait of Hormuz, noting that tariff measures or disruptions in key maritime routes could have wider implications across global shipping corridors.

Ms Demme said global supply chains continue to face geopolitical conflicts, port congestion and canal disruptions. She explained that Maersk introduced its East West network in partnership with Hapag-Lloyd in February to improve service reliability by reducing the number of ports served by each vessel.

She added that approximately 20 million barrels of the 100 million barrels of oil consumed globally each day pass through the Strait of Hormuz, making disruptions in the region significant for fuel sourcing, bunker costs and shipping operations.

According to Ms Demme, ocean freight rates have generally stabilised despite higher bunker costs. Export freight rates from Asia have increased, while Europe's backhaul routes, including recovered paper shipments, have remained relatively stable.

She described today's supply chains using the terms "disrupted, divisive and defiant," noting that businesses have become more agile in responding to changing conditions.

During the discussion, Mr Donoso raised questions about carbon emissions associated with transporting recovered paper internationally. Mr Ehrlich responded that containers would return to Asia regardless of whether they were loaded or empty, while Ms Demme said recovered paper plays an important role in equipment positioning and return cargo utilisation.

EU Digital Waste Shipment System

Emmanuel Katrakis, Director of Regulatory Affairs at Galloo and board member of Recycling Europe, outlined the requirements of the new EU Digital Waste Shipment System (DIWASS).

Introduced under the revised Waste Shipment Regulation (EU) 2024/1157, the system became operational on May 21, 2026. Although the transition period extends until December 31, 2026, Mr Katrakis encouraged companies to register early.

He explained that registration is required for all participants in the shipment process, including operators, transporters, competent authorities, recovery facilities and disposal facilities. DIWASS applies to shipments within the EU, imports into the EU and exports from the EU to non-EU countries.

Mr Katrakis noted that paper mills outside the European Union purchasing recovered paper from Europe must also register before the end of the year.

He also highlighted concerns over a new requirement under the revised Waste Shipment Regulation that calls for the Annex VII document to be shared electronically 48 hours before shipment, stating that industry representatives are seeking modifications to the requirement.

Recovered Paper Market Outlook

Myles Cohen, board member of Vipa Group, discussed the relationship between corrugated box demand and economic activity, noting that corrugated packaging carries 75-95% of manufactured products in the United States and has historically reflected changes in consumer spending.

The second half of the session featured market presentations by Ranjit Baxi, President and Managing Director of J&H Sales International, Simone Scaramuzzi, Sales and Purchase Director at LCI SRL, John Atehortua, Key Account Manager at Remondis Trade and Sales GmbH, and Myles Cohen.

Mr Baxi said infrastructure investment and digital technologies are strengthening India's logistics capabilities and supporting its role in global supply chains.

Mr Cohen noted that demand for corrugated packaging in the United States has been affected by lightweight packaging, right-sizing and lower food sales, resulting in a surplus of recovered fibre. According to first-quarter data, India, Vietnam, Thailand and Malaysia were the leading destinations for U.S. recovered fibre exports, with India and Southeast Asia accounting for around two-thirds of exports.

Mr Scaramuzzi said the European export market over the past six months had been influenced more by logistics than by supply and demand. He reported that shipping costs had increased by approximately 60% because of the conflict in the Middle East, insurance costs had risen by 25-40%, and higher energy prices had increased collection, sorting, baling and mill operating costs by 20-30%.

Mr Atehortua said European paper mills are maintaining low inventory levels and adjusting production according to market demand. He added that trucking costs have increased by around 30%, making logistics partnerships increasingly important for the industry.

Papyrus Award Presented

The session concluded with Francisco Donoso presenting the Papyrus Award on behalf of the BIR Paper Division to Sabri Cimen, CEO of Eren Holding, in recognition of the company's contribution to the recovered paper industry.

Eren Holding owns the Shotton Mill in the United Kingdom, which has received approximately £1 billion in investment. The facility is expected to begin production by the end of the year with an annual capacity of 750,000 tonnes of 100% recycled containerboard and 67,000 tonnes of tissue.