What You Need to Know About the Pallet Market

Pallet market update:

1. Prior to the pandemic, pallets were plentiful and readily available. Now, the demand for pallets exceeds supply. In fact, demand has risen by 25% this year.
2. While low supply and high demand has driven up the cost for pallets, there are other factors at play too. Right now, the biggest issue impacting pallet prices is the cost to transport raw material to pallet makers.
3. Pallet production and distribution is lagging largely because of the time it takes to transport lumber to pallet manufacturers. Wait times of six weeks or more for a load of material is not uncommon.
4. More buyers are seeking reusable and recyclable pallet materials to satisfy corporate sustainability initiatives.

What to expect moving forward:

1. Higher-than-usual pallet prices and tight supplies throughout 2022. It is critical to partner with a provider that can offer creative solutions to help overcome market dynamics.
2. Shortages on popular sizes and types. Consider quarter, half, or other small-sized pallets. Also ask your provider about combo pallets as an alternative to new solid-wood pallets.
3. Long lead times. Fourteen to 20 business days continues to be the average. Always try to give your pallet provider plenty of time to source and fill your order.
4. Supply chain sustainability. Wood pallets remain a great choice to meet sustainability goals as they are made from naturally sustainable material and are available in multi-use iterations. Returnable plastic pallets are being considered by many companies as well.

As always, Rose Pallet will do our best to provide transparent communication and assist however we can.  We are here for you as a resource and as a partner. And we are confident that, together, we can navigate these ongoing challenges. Contact us anytime.