Used pallet demand soars as supply chains cut costs

The used wooden pallet industry is reporting a large uplift in enquiries from supply chain users, as the prices of inputs including raw materials and transport have increased.

According to members of the National Association of Pallet Distributors (NAPD), demand has risen to “unparalleled levels” – up to 70% higher and from further afield than usual – as businesses seek to reduce costs of manufacturing, packaging, and delivery of goods.

Saleh Hijazi, press officer for NAPD, said: “The used wooden pallet business is experiencing heavy growth in demand from existing and new customers. This is being driven by a shortage of pallets and pallet timber in Western Europe, particularly in the Benelux region, diverting reused pallets and pushing prices up here in the UK. This has been further compounded by severe inflation in energy, transport, and other input costs.

“Reuse is helping to ease these issues – and is a central part of the circular economy, too. Wooden pallets are one of the most sustainable parts of a supply chain already, and repair and reuse of these has an increasingly important part to play in helping businesses fulfil their environmental obligations.

“While this challenging period continues, we are advising our customers that forward planning is more important than ever and we are working closely with them to fulfil the increases in orders.”