Caraustar raises prices on fiber shipments

Recycled paperboard manufacturer Caraustar Industries Inc. said Friday it will raise prices on shipments of recovered fiber.

Caraustar said it is seeking to recoup fuel and freight costs that have been increasing this year.

Gregory B. Cottrell, a company vice president, said freight charges have increased from 35 cents a mile to 58 cents since the start of the year. Caraustar will pass on to customers the 23 cent-a-mile difference, he said.

"It's not a very popular decision, but we've got to do it," Cottrell said.

The surcharge, which takes effect Oct. 1, follows guidelines established by the Energy Department, he said.

Shares of Caraustar traded at $1.74, down 2 cents, in late-morning trading.