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  • The Tampa Bay Times, one of the largest newspapers in the US, will lay off around 50 people.
  • The publication said the layoffs come in direct response to a new tariff on newsprint.
  • Local newspapers across the US are worried the tariff, imposed by President Donald Trump's administration, could hurt their business.
The Tampa Bay Times, one of the largest US newspapers by circulation, plans to lay off around 50 people starting Thursday in a direct response to a new tariff imposed by President Donald Trump's administration. 
The Tampa Bay Times confirmed the layoffs to the Tampa Bay Business Journal. 
In March, Paul Tash, the Times' chairman and CEO, wrote in the paper that new tariffs on imported newsprint would increase the company's costs by roughly $3 million a year. 
"These tariffs will also hurt our employees, because payroll is the only expense that is bigger than newsprint," Tash warned. "To help offset the extra expense of paper, publishers will eliminate jobs. Make no mistake: These tariffs will cause layoffs across American newspapers, including this one." 
A Tampa Bay Times spokesperson told the Tampa Bay Business Journal that the cuts came because of the tariffs and that the layoffs "are taking place throughout the organization." 
The tariffs were imposed on imports of Canadian newsprint after a Washington-based paper producer owned by the hedge fund One Rock Capital lodged a complaint with the Department of Commerce. 
Using a similar investigation process that led to new tariffs on steel and aluminum, the Commerce Department imposed a tariff on newsprint imports in January and increased their size in March. 
The tariffs left local newspapers, already facing financial constraints, worried about how their businesses could handle the cost increase. 
For the Tampa Bay Times, the cuts represent another round of trouble in a string of tough financial decisions. According to the Tampa Bay Business Journal, the paper was forced to take out a $12 million loan and a $20 million secured credit line in 2017 to shore up its finances. 
The Tampa Bay Times is owned by the nonprofit journalism school the Poynter Institute. It a daily circulation of just under 240,000 and reaches 1.6 million people a week online and in print. The paper is one of the 15 largest in the US by circulation.

Paper industry statistics:



 Recent News 
Paper markets have become increasingly difficult to navigate since last month. All paper markets are still very tight with many mill machines on allocation and not taking new business beyond current commitments. Order lead times have increased out to as much as 16 weeks for some grades. There are a number of factors playing out at the same time in the paper and transportation industries creating a supply and demand imbalance and chronic shortages and late paper for most grades. Paper prices continue to escalate…we’ve included the updated summary below. 
  • o The U.S. Dept. of Commerce (DOC) will issue a preliminary decision in the antidumping (ADD) investigation regarding uncoated groundwood (UGW) and newsprint imports from Canada. If it is determined that these imports were sold at less than “fair market value”, the U.S. will impose ADD on shipments into the U.S. 
  • o West Coast UGW mills are increasing the price for uncoated groundwood MF Hi-Brites, by $25/ton effective April 1. 
  • o Verso plans to restart their paper machine in Jay, ME to manufacture packaging products. 
  • o Whole Oceans, a Maine company, will launch a sustainable Atlantic salmon aquaculture operation at the former Verso paper mill in Bucksport, ME. 

Paper Price Increases Announced Paper Grade Increase Effective Coated Freesheet Grades #1 to #3 $2.00/cwt March 1 Coated Grade #4 $2.00/cwt March 1 Coated Grade #5 $2.00/cwt March 1 Uncoated Freesheet, Reply Card, Opaque $2.00/cwt March 1 Uncoated Groundwood MF Hi-Brightness $35/ton Feb. 1 Uncoated Groundwood MF Hi-Brightness $25/ton March 1 

UNCOATED GROUNDWOOD ALL SCA+/SCA/SCB/SNC $40/TON MARCH 1 NEWSPRINT EAST (27.7 LB) - ALL $22/MTON MARCH 1 NEWSPRINT WEST (27.7 LB) - RESOLUTE $22/MTON MARCH 1 NEWSPRINT WEST (27.7 LB) - NORPAC $22/MTON APRIL 1 DIRECTORY $50/TON JAN. 1 DIRECTORY $30/TON 2/1 - 4/1
MARKET DRIVERS 
  • o Economists expect 2018 to be a positive year for the U.S. consumer, supported by a tight labor market, stronger economic growth and increasing consumer confidence. 
  • o Wood pulp prices increased another $20-$25/tonne in February, with $30/tonne increases announced for March. 
  • o Paper mill total production costs for North America are forecasted to increase in 2018 as follows: UGW to rise 4.6%; UFS to rise 2.4%; CGW to rise 3%; CFS to rise 2%; Newsprint to rise 5.3%. 
  • o US Dollar currency exchange: The euro is at 1.23 trending slightly upward (strengthening). The Canadian dollar is at 0.77 and trending downward (weakening). 
  • o Transportation issues still burden the nation, with load to driver ratios in the U.S. reaching 14:1. 

Paper Grade Review 
  • o Coated – Coated producers announced another price increase of $2/cwt for March 1 for all coated grades. Despite typical weakness in demand for coated grades this time of year, operating rates for January were 93% for coated freesheet (CFS) and 97% for coated groundwood (CGW) due to recent capacity shuts keeping the coated paper markets tight, even on allocation in many instances. Order lead times are out as far as 12 weeks. 
  • o Uncoated freesheet – UFS prices continue to rise, with another $2/cwt increase announced for March. This market is tightening up quickly, and operating rates are on the rise. Supply is on allocation from some mills. Order lead times are out as far as 12 weeks. 
  • o Uncoated groundwood (including SC) – Price increases for March 1 for SC and UGW grades…$25/ton on March 1 for MF hi-brites, and $40/ton on March 1 for SC grades. As Canadian mills pay the newly implemented CVDs for MF grades, expect these costs to be passed through to buyers. UGW market is tight with high operating rates due to machine shuts. Order lead times are out as far as 16 weeks. 
  • o 
  • NEWSPRINT - HIGHER NEWSPRINT PRICES THIS YEAR ARE BEING CAUSED BY TIGHT SUPPLY. 1.3 MILLION TONS OF CAPACITY WAS CLOSED OR IDLED IN 2017, REPRESENTING 23% OF NEWSPRINT CAPACITY. THIS HAS TIGHTENED THE MARKET CONSIDERABLY. ORDER LEAD TIMES ARE OUT AS FAR AS 16 WEEKS FOR NEWSPRINT. PAPER GRADE JAN '18 DEC '17 JAN '17 JAN '18 DEC '17 JAN '17 AVG ORDER LEAD TIME NEWSPRINT 205 183 247 303 330 379 14 TO 16 WEEKS UNCOATED GROUNDWOOD 147 142 193 74 71 98 12 TO 16 WEEKS UNCOATED FREESHEET 697 713 712 660 596 654 10 TO 12 WEEKS COATED GROUNDWOOD 100 107 147 152 155 173 8 TO 12 WEEKS COATED FREESHEET 409 411 545 276 277 292 6 TO 12 WEEKS 000S OMITTED; SOURCE: PPPC & QUAD PAPER SERVICES MILL INVENTORY SHIPMENTS 
  • 2018 FORECAST 2017 ACTUAL % YR
  • Newsprint - Higher newsprint prices this year are being caused by tight supply. 1.3 million tons of capacity was closed or idled in 2017, representing 23% of newsprint capacity. This has tightened the market considerably. Order lead times are out as far as 16 weeks for newsprint.