The cost of pallets

The cost of pallets

The Timber Packaging and Pallet Confederation (TIMCON) have reported a significant increase in demand for timber in the first quarter of 2014 from the recovering construction sector and booming demand for timber in foreign markets. capacity was also affected by the recent adverse weather conditions

It looks likely that the market may not keep pace with demand and with sawmills running at capacity, the outlook for pallet pricing for the remainder of the year looks poor.

All markets want timber: Canada has been affected by beetle attack, forcing China to purchase from Russia and Scandinavia. America’s housing boom is triggering increased imports from Europe, North Africa, Egypt and the Middle East which is also putting pressure on demand. Many of the other global markets will pay more to secure the supply of timber they want, driving global costs.

The expected upward cost pressure is likely to lead to cost inflation for the handling of goods through supply chains and also has the potential to result in businesses trying to extend pallet life / replace less frequently. This in turn can lead to issues in transportation if sub-standard pallets are used. Hauliers will not accept liability for damages when issues are found to be caused by poor packaging so product owners need to be mindful of the risks involved.


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