Corrugated boxes, linerboard, medium, coated boxboard—this is the packaging that everything else rides in. When mills run hotter, converters buy more rolls, warehouses stack more cartons, and the truck market usually follows. When mills cool down, that heat fades out on your trailer a few weeks later. Cardboard is the heartbeat of goods demand.
The newest reads from the American Forest & Paper Association (AF&PA) give us a clean pulse check on Q2. Here’s the short version: containerboard softened, boxboard held roughly flat, operating rates ticked lower, and inventories swelled and then eased. That mix signals a goods economy that’s not collapsing—but isn’t charging ahead either. And because packaging sits upstream of retail freight by a few beats, these signals matter to your calendar and your wallet.
Let’s unpack what’s inside the numbers, connect it to what’s happening in ports, stores, and factories, and translate all of it into lanes and tactics you can actually use.
Two reports, same quarter, different vibes:
Containerboard (think corrugated boxes): AF&PA says Q2 production was down 5% year over year, and down 3% year-to-date through June. Domestic new supply fell 1.2% YTD, while export production was the weak link—down nearly 12% YTD. Operating rates slipped 2.7 percentage points, and mill inventories rose to a 15‑month high mid‑May, before ending the quarter at 433,000 short tons.
Boxboard (think cartons for food, personal care, household goods): Q2 was flat year over year, with the operating rate at 87.6%, down 1.8 points from last year. Category moves were mixed—some grades up, others down—netting to “steady, not screaming.”
What that means in plain English: corrugated—the workhorse of e‑commerce and general merchandise—cooled in Q2, while cartonboard tied to staples held the line. When corrugated slows, the broad “everything ships” freight tide loses some lift; when boxboard holds, grocery/CPG-adjacent freight tends to cushion the blow. Both make their way in the back of a 53’ trailer at some point.
Why export weakness matters: U.S. containerboard sells into global markets. When exports drop ~12% YTD, that excess supply sits at home unless domestic demand absorbs it. Pair that with inventories peaking in mid‑May, and you’re looking at a packaging chain that had more stock than orders for a stretch—exactly the kind of upstream wobble that shows up downstream as lighter pallets and less re‑order urgency.
(Source: Industry Arc,
Packaging tells you a lot, but the full picture comes from watching how retail, trade flows, and manufacturing are moving in the same quarter.
Retail spending: June retail sales improved across most categories, a welcome sign after a choppy spring. That’s not a boom, but it argues against a consumer collapse—and it’s relevant because retail replenishment drives a big share of carton and corrugated pulls.
Ports & tariff timing: The Port of Los Angeles just posted a record June (892,340 TEUs), with importers rushing to beat tariff deadlines. Savannah logged its second‑busiest fiscal year, but June volumes dipped ~9.6% as retailers paused and re‑timed orders. Translation: a front‑loaded import wave that likely fades from late Q3 into Q4 as tariff effects bite and holiday goods arrive earlier than usual. (New York Post, AP News)
Freight cycle tone: Trade friction and tariff layers are creating soft freight to say the least—short bursts of port‑driven volume followed by air pockets. That’s consistent with industry commentary you’ve seen: near‑term spikes masking a more fragile baseline. (Reuters)
Put it together with AF&PA: containerboard softening + high inventories + tariff‑timed imports = a freight pattern that pops around ports and then cools inland unless consumers follow‑through and keep shelves turning. Boxboard’s flatline suggests staples are still moving; not gangbusters, but enough to keep grocery, personal care, and household lanes from falling out of bed.
Let’s cut through the charts—cardboard demand is like your early warning system for freight. When the mills crank out big rolls and the converters turn them into boxes, it doesn’t take months for that to hit your trailers—it’s more like a couple of weeks. Boxes get made, shippers start packing orders, warehouses call for replenishment, and then your phone rings.
Now here’s the part a lot of folks miss: if those mills start slowing down, cutting hours, and stacking up inventory, you might not feel it today. But you will—give it a little time, and you’ll notice the load volumes aren’t growing as much. That’s the chain reaction.
Right now? Q2 containerboard is down about 5%. That means early Q3 could feel a little lighter on volume—unless retail does something unexpected and gives us all a nice surprise. Boxboard’s holding steady though, which says grocery and other lanes aren’t going anywhere. You might not love the rates, but they’re still running.
Import front-loading—shippers pulling orders forward before tariffs hit—has near-port guys running a little hotter on drayage and short-haul replenishment. But here’s the kicker: that doesn’t mean long-haul’s popping unless buyers keep moving product inland.
If you’re going to “highlight and execute,” make these your dashboard items for the next 6–12 weeks:
AF&PA operating rates and inventories (monthly cadence):
Rising rates + inventory drawdown = real demand is back, not just timing noise.
Port TEUs vs. inland replenishment:
Record TEUs can be tariff timing rather than fresh demand. The tell is whether those container peaks translate into DC re‑orders or sit in coastal warehouses. Watch LA/LB and Savannah updates and compare to your own tender flow two to three weeks later. (New York Post, AP News)
Retail sales revisions:
June came in better than expected. Now the question is: Can fall reports keep pace? If they do, corrugated demand might bottom out quicker than folks think. If not, get ready for a choppy ride into the holidays.
Trade headlines:
Tariffs and sourcing shifts (China → SE Asia) don’t remove demand—they re‑route it, change timing, and sometimes change ports. That matters for which lanes you prioritize and when. (New York Post, AP News)
There’s a reason this moment feels contradictory: the signals are mixed.
AF&PA says corrugated is cooling off—rates are slipping, inventories are piling up. That’s usually a soft-goods warning.
AF&PA also says boxboard is flat—meaning your staple freight (think groceries and household items) is still steady.
Retail perked up in June, which could help draw down packaging inventories in August, if the consumer holds. That means a potential uptick
Ports are running hot on timing, not necessarily on sustainable demand. Front‑loads can leave you with a great week and a quiet one right behind it. (New York Post, AP News)
If you’re waiting for one magic headline to tell you what to do next, you’ll miss what the cardboard is already telling you—this isn’t a uniform boom or bust. It’s a patchwork. The winners in a patchwork market don’t chase averages; they specialize, shorten cycles, and plant flags in the boring freight everyone else ignores.
Cardboard doesn’t lie. It tells you when the warehouse is getting ready, when retail is restocking, and when converters are easing off the throttle. Right now it’s saying: don’t overextend, but don’t sit still. Tighten your business, protect your time, and cozy up to the shippers and brokers who still move freight on consistently whether the headlines are red or green.
You don’t control the trade policy or the consumer. You do control your mix, your cycles, and your relationships. In a market like this, that’s the edge.
The post When Cardboard Talks: What Q2 Packaging Demand Says About Your Next Freight Market For Small Carriers appeared first on FreightWaves.
