How Buyers Can Prevail in a Challenging Pallet Market

There’s no shortage of shortages these days. From lumber and laborers to gasoline, it seems that we all must be prepared to do more with less. Yet, pallet buyers can prevail. Here’s how…

For pallet companies, the surge in demand for pallets over the past year has been exciting, but not without its challenges. The lack of raw material and labor to produce pallets has made it tough to meet client needs. Rising costs for nails, fasteners, and other components have driven up the price. And, most recently, ransomware attacks and a lack of qualified tanker truck drivers has led to fuel shortages, disrupting deliveries.

Pallet companies are finding ways to work around these obstacles. For example, to ensure available fuel and drivers for delivery, many are optimizing backhauls, limiting hauling activity, and temporarily halting returns of stray rental pallets.

Yet, due to heightened demand and short supply, pallet companies and buyers alike are affected by the rising price for pallets. Buyers can prevail, however, by following these tips.

Buyer Be Prepared!

  1. Pre-buy and carry an extra supply. Even though the price is high today, it may be higher tomorrow.
  2. Make it a regular practice to assess inventory. As soon as you notice a variation from projection, notify your pallet supplier and submit your purchase order. (Providing your supplier with a lead time of 14-20 business days is common practice.)
  3. Order a full truckload. This not only helps to ensure timely delivery, it also saves on freight charges as the more you order at one time, the less you incur in shipping costs per unit.
  4. Consider alternative sizes or lumber species. Less-common sizes may be easier to procure and less expensive than the standard 48×40 pallet. If you can also switch to a different lumber species, it may also help shorten lead times.

Rose Pallet is grateful for our client relationships. Whatever challenges the market may bring, we promise to always deliver strong communication, a high level of service, and fair pricing. If you have questions, please give us a call; we will do our best to help solve your pallet needs.

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