Rising Pallet Prices – managing the situation
Shortage of new timber for pallet manufacture
Earlier this year it was reported that the price of timber was escalating daily, due to a shortage of timber caused by an increase in demand. This not only affected the prices, but also the lead time on the supply of timber. This, combined with recent bad winters, has affected the supply of new timber in the UK and a need to source from other European countries, particularly the Baltic states. Timber suppliers in the Baltics have stated that they are running out of trees to cut down as many UK companies turned to them after the home-grown situation worsened. All of this serves to increase the lead time for the supply of new timber and also to increase prices as a result of the demand and additional transport costs.
Impact on reconditioned pallet supply
As a result of the timber crisis, many people have switched from new wooden pallets to reconditioned, heightening the price of used pallets. The quantity of used wooden pallets in circulation has reduced, making it increasingly difficult to acquire used pallets.
Whirlowdale have been in the pallet supply business for many years and are accustomed to seeing a shortage of one particular type or size of pallet every couple of years or so, but this time around it seems that almost every type of pallet is becoming more and more difficult to source
Wooden pallet pricing increases
Used pallet prices are also increasing, which impacts further on the production cost of reconditioned pallets. Profit margins in the pallet industry are extremely low, so in common with other pallet suppliers, Whirlowdale have been forced to pass on some of this increased cost to customers.
We would like to thank all of our customers for their understanding and cooperation during the difficult time that the pallet industry is currently facing. We would also like to advise customers that once the market conditions change, prices will again be reviewed.
How Whirlowdale are meeting the demand for wooden pallets
We are continuing to source timber and used pallets on the best available terms and to maintain our pallet stocks – however there are inevitably some delays in supplying specific pallet types.
We are hopeful of an improvement in timber supply and have increased our production facilities in anticipation of this, meanwhile we strongly recommend that all customers plan ahead as far as possible and order their pallets in advance, giving us more opportunity to source and supply on time and at reasonable cost.
For more information, please contact Whirlowdale Trading Company on 01709 829061 or e-mail sales@whirlowdale.com