Paper Usage — Making the Grade

"Delivery security takes two forms," he explains. "One issue is: 'Will they get the paper in time for the specific event that I want to bring in paper for?' The companion issue is: 'Will they be here under different market conditions?'

"What will happen, with a strong market, is that a lot of European paper will just stay in Europe. You won't be able to get it at any price," Kullman continues. "Some European manufacturers will retreat back. Clearly, the United States is not the most profitable market for European companies to sell in if they have a choice, because they're carrying about $60 a ton in real round numbers of extra transport and logistics costs that they don't have when they're selling closer to home."

While Kullman believes that most foreign paper is equal in quality to domestic product, he does point out that many of the foreign companies do not have a sustained market presence in North America.

They're more opportunistic in their selling here," Kullman notes. "Since we're trying to build more in the way of partnerships with mills, we can't build a partnership with a supplier that is going to be here one season and gone another."