The Panama Canal is owned and operated by the Central American nation, but US President-elect Donald Trump has made waves about excessive shipping fees and has threatened to demand control of the vital waterway be returned to Washington - Copyright Panama Canal Authority/AFP/File Handout
In any shop, and nearly everything — except some produce — comes in some type of package. Bottled water, cheese, electronics, large appliances…each is wrapped in protective material to ensure that items are not damaged in transit and to aid their preservation.
Changes, such as tariffs in the global marketplace, could have a ripple effect on packaging. This is the view of Laszlo Horvath, an associate professor in the College of Natural Resources and Environment at Virginia Tech.
Horvath’s research interests include packaging sustainability, smart and connected packaging, and unit load Interactions, which is highlighted by generating information used to create a commercial pallet design software.
“Tariffs can significantly impact costs”, Horvath continues. “Many packaging moulds, which can cost millions, are made overseas. If a company orders a mould from Europe or China, and tariffs increase before it arrives, they suddenly owe more money. This increased cost is then passed down to consumers.”
The potential impact of Trump’s tariffs could also adjust shipping routes or the actual method of transportation.
“If a shipping route changes, packaging requirements may also change,” Horvath adds. “For example, if a product that was originally shipped by sea now needs to be transported by rail, it faces different types of vibrations and impacts. Packaging designed for one mode of transportation might not be suitable for another.”
As an example, if a product is manufactured in Pennsylvania and shipped to Virginia, it spends minimal time in transit with limited handling. In contrast, a product made in China must first be transported by truck to a port, cross the ocean, arrive in California, travel by train to Chicago, and finally reach its destination. This significantly longer journey involves multiple handling points, increasing the likelihood of damage.
Hence, packages must be designed to withstand these conditions. Horvath explains: “Every time a package is handled, there’s a chance it will be dropped, compressed, or hit. Additionally, environmental factors like temperature and humidity fluctuations must be considered.”
Drawing on another example, a product moving from the humid climate of Costa Rica to the cold of Alaska requires packaging that can handle these extremes. Therefore, if a shipping route changes due to tariffs, there’s also the possibility of the packaging design to be revised to fit the new handling points, which could also increase costs for the consumer.
Horvath recently joined Virginia Tech’s “Curious Conversations” to talk about the complexities of packaging and the factors to be considered during packaging design. Here the academic shared insights related to affordability and sustainability as well as how international tariffs and other supply chain disruptions can impact packaging and ultimately customers.