New Jersey Moves to Reduce Packaging Waste with Shipping Box Bill

If enacted, violators would face penalties ranging from $250 to $500 per offense. The bill now moves to the state Assembly.

A bill aiming to reduce packaging waste has passed in the New Jersey Senate, potentially impacting how large retailers ship products to consumers. Senate Bill S226, sponsored by Democratic Senators Bob Smith and John McKeon, passed by a 21-15 vote. The legislation would prohibit large online and major retailers in New Jersey from using shipping boxes more than twice the volume of the product being shipped.

Under S226, a “large online retailer” is defined as a business selling goods online with annual gross sales of at least $1 million in or into New Jersey. A “major retailer” refers to a retail establishment occupying at least 75,000 square feet and employing 50 or more people. Companies that violate the bill would face civil penalties ranging from $250 to $500 per offense.

The bill acknowledges the increasing popularity of e-commerce and emphasizes the importance of reducing packaging waste. “To reduce the packaging waste associated with online shopping, it is imperative that large online retailers and major retailers reduce the size of the shipping boxes utilized to ship their products to consumers,” the bill states.

This legislation follows a history of packaging waste reduction efforts in New Jersey. In January 2022, Governor Phil Murphy signed S2515 into law, which banned the sale of polystyrene void-fill materials and required manufacturers to meet minimum recycled content standards for packaging products.

Doug O'Malley, state director for Environment New Jersey, praised the bill as a “common sense measure” for reducing packaging waste. He noted that the state has been considering numerous bills related to plastic pollution and waste reduction. “It's telling that this bill was the first heard in the full Senate and passed,” he told Packaging Dive. “It speaks to the fact that this is a universal experience that resonates with the public.”

However, critics argue that the bill represents an attempt to micromanage logistics without the necessary expertise. The New Jersey Business & Industry Association (NJBIA) warned that the legislation could increase shipping costs for consumers and jeopardize next-day delivery services. “Our policymakers should not be determining the best ways to ship without any expertise of their own,” Ray Cantor, NJBIA's deputy chief government affairs officer, told Packaging Dive.

Despite criticisms, some retailers have already taken steps to optimize packaging. Walmart, for example, announced in 2023 that it had implemented technology for custom-fit packages, reducing the need for filler material by 60% and cutting waste by up to 26%. Amazon also uses machine learning to optimize packaging sizes and recently began phasing out plastic air pillows in favor of 100% recycled filler paper.

S226 now heads to the state Assembly, where it will be reviewed by the Commerce, Economic Development, and Agriculture Committee. If enacted, the bill will mark another significant step in New Jersey's ongoing efforts to reduce packaging waste and promote sustainability.

Source: SupplyChain 24/7 Staff July 9, 2024