Pallet Timber Shortage

In the current economic climate no one wants to hear the words “price increase”, however sources reveal that timber prices are once again on the up.

Pallet Timber – Current Situation

Timber demand has steadily increased over the last few months in mainland Europe, which has pushed buyers to source more from the Baltic Stares - inevitably leading to a shortage of timber.  This, coupled with the recent bad weather across Europe, has meant that timber availability is low compared to last year. The weather has caused a shortage of logs being collected from the forests, which in turn is raising demand and therefore prices. Timber suppliers have already put their prices up around 5%, but market indications reveal that this could rise even more over the course of 2010.

With the timber situation in mainland Europe & the Baltics worsening, UK mills are also feeling the pressure. Home grown timber has historically always been slightly more expensive than timber from the Baltics, so this increase will hit them hard as buyers are still looking for savings. There is an additional pressure in the market caused by a gradual increase in house building which is creating competition for timber.

Not only are the prices rising, but due to reduced availability, timber lead times are also increasing. Where customers could buy and have new pallets manufactured within 2-3 weeks, buyers are now being told to expect lead times of 4 weeks minimum.  

Whirlowdale Trading Co Ltd are doing everything they can to minimise the effect of the timber shortage by recycling and advising all customers to forward order their new pallets while timber prices are still at a reasonable level, as market experts think they will inevitably rise again in 2010.

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