5 Realities of the Pallet Market and What You Can Do

The pallet market is experiencing unprecedented price fluctuations and supply shortages. And, while no one likes to pay more for pallets, it has become a reality.

At Rose Pallet, we find it helps to be transparent and inform our customers about the pallet market to ease any ‘sticker shock.’ The following is a brief update as to why pallet prices are on the rise and what you can do to ease the burden for your supply chain operations.

The Reality:

1. Low-grade hardwood cants are difficult to locate (hardwood log exports have increased, which has reduced availability throughout North America).
2. Softwood such as Southern Yellow Pine and Canadian SPF are limited in supply, too (with tariffs on Canadian imports partially to blame).
3. More frequent forest fires and rainy seasons have reduced available lumber to harvest.
4. Used pallets and pallet cores have become limited in supply.
5. Even with supply shortages and high demand, wood will continue to be the most economical material source for pallets.

What You Can Do:

1. Ask your pallet provider for regular market reports; this helps you stay informed about the realities of the pallet market (and the data can be used to secure higher budgets for pallet expenditure).
2. Allow more time from placing an order to delivery of supply.
3. Do not let your pallet inventory go below a three-day supply and be sure to allocate extra room for pallet storage in your warehouse.
4. If you have a supplier that cannot meet your demands, line up an alternate source or provider of pallets.

Substitute your supply with combo pallets or Grade B / Number 2 pallets during spot shortages.