Recycling volumes to decline from distribution centers

By Jerry Powell, Resource Recycling

A seminal change in how foreign goods are handled in the U.S. will result in a decline in recovered plastics and paper from large distribution centers.

China has revised its customs regulations to allow for shippers to set up bonded logistics parks in southern China and near Shanghai. Big retailers can then receive Chinese-made goods from nearby manufacturers, sort the goods and pack containers in precise quantities of goods destined for specific U.S. stores. When the containers arrive in the U.S., they are hauled directly to the targeted stores and not, as in the past, to huge retailer-owned distribution centers. As reported in the Financial Times, these goods often have a price tag attached and are ready for the store shelf.

Previously a container full of specific goods, such as shoes or shirts, would be shipped to a U.S. distribution center, unloaded and then the goods would be parceled out to company stores in the region of the center. This would result in large volumes of recovered boxes, shrink wrap and other recyclables.

Retailers are expected to develop similar sorting and shipping operations in other countries, including India and Vietnam.

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