Reusing Pallets Essential to Sustainability Goals

The Chairman of the UK National Association of Pallet Distributors (NAPD) has called for supply chain businesses to ensure they have a ‘reuse first’ policy in place for pallets.

As new legislation will be introduced in the UK and EU in 2024, environmental reporting will be mandatory for large businesses and is expected for SMEs by 2026. NAPD Chairman Paul Tait said the many companies that supply products such as food, drink, and pharmaceuticals can make the transition more straightforward by reusing their pallets, which will cut the carbon impact of their supply chains.

“Reuse is a central part of a circular economy and enables businesses to make sizeable savings in their emissions and move closer towards their increasing sustainability obligations,” said Tait. “Wooden pallets are a naturally sustainable product and companies that reuse them in their supply chains extend the environmental benefits further.”

Used pallets are exempt from packaging waste regulations, so businesses using them also cut down administration and cost.

Reusing Pallets

Saleh Hijazi, press officer for NAPD, said: “With regulations including the Sustainability Disclosure Standards (SDS) and Extended Producer Responsibility (EPR) in the UK, and CSRD in Europe, coming into force in the months ahead, it’s imperative that everyone involved in goods supply chains works together to mitigate environmental impact and make businesses greener. Sustainability-focused strategies for supply chains are no longer a ‘nice-to-have’; they are essential to meeting legislative obligations and the demands of our customers.”

NAPD is the UK association for companies that repair pallets for reuse to a high standard. Its members are bound by a code of conduct and provide additional supply chain services to customers.

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European business reusing more wooden pallets

 

 

Collaboration and Data Key to Timber Industry

Collaboration between different sector organisations is increasingly important to achieving shared targets for the timber industry, according to John Dye, President of the Timber Packaging & Pallet Confederation (TIMCON).

At the general meeting of TIMCON members, held in Manchester in January, Dye said strong relationships with international and domestic associations including European Federation of Pallet & Packaging Manufacturers (FEFPEB), National Wooden Pallet & Container Association (NWPCA), National Association of Pallet Distributors (NAPD), Timber Development UK (TDUK), Wood Panel Industries Federation (WPIF), and the Wood Recyclers Association (WRA) – which were all represented at the event – are vital to progressing the interests of timber-based businesses. This included cooperating on policy matters affecting the industry such as the PPWR and working together to source high quality data to inform better decision making for the business.

NWPCA Vice President of Public Affairs Jason Ortega, echoed the theme of international partnerships as he presented an update on his organisation’s activities. This includes a new carbon calculator it has developed and from which it will share learnings as TIMCON embarks on a similar initiative to help its membership meet increasing sustainability obligations.

Marcus Kirschner of the German Wood Packaging Federation (HPE) and FEFPEB’s PPWR Committee said working with national organisations across Europe is a central part in lobbying EU
policymakers. This includes ensuring they understand that the wooden packaging and pallet industry is naturally sustainable and should be at the heart of its circular economy principles, and helping achieve acceptable results on PPWR.

Dye said: “Over the past decade, TIMCON has fostered close productive partnerships with our pallet and packaging industry counterparts across the world and related wood-based sectors. These relationships help us establish and communicate shared positions and achieve mutually beneficial outcomes. At a time of significant international tensions, this spirit of solidarity, cooperation, and friendship helps strengthen us all, as individual businesses, as associations, and as a timber industry overall.”

He added that with TIMCON representing the UK and Ireland, its remit included members both inside and outside the EU, again highlighting the significance of working towards international solutions that benefitted all. The need for quality data on the business from within the industry was also highlighted by Guy Watt of John Clegg Consulting, who presented the findings of the UK Wood Pallets & Packaging Market in 2022. The latest edition of this annual report, which is jointly commissioned by TIMCON and Forest Research (the research arm of the Forestry Commission), showed a 7 per cent drop in production of new pallets, to 45.3million, representing a fall of approximately 3.4m pallets.

This follows the 8.3 per cent increase in pallet manufacture shown in last year’s report – and may be followed by a larger decrease for 2023. Pallet repairs, meanwhile, have risen to 48.9m, an increase of 1.7 per cent on 2021. Watt said surveys for the market report’s next edition would be issued to the membership much earlier, during February this year. This, said Dye, will allow it to be published earlier, reducing uncertainty around volumes, and helping inform discussions with Defra and other government departments.

The TIMCON meeting also featured presentations by Charlie Law, Sustainability Director for TDUK, and Nick Boulton, TDUK Head of Technical and Trade Policy. Law gave an update on the UK timber industry’s net zero action plan and the specific ways in which the pallet and packaging sector can support it. Boulton presented latest UK market industry trends, including timber imports, demand, and forecasts.

QR Pallet Launch Boosts Traceability

EPAL UK & Ireland has announced that it has launched a traceable pallet that will significantly improve the traceability and efficiency of users’ supply chains.

The EPAL Euro QR pallet features a scannable code linked to a unique serial number, helping to boost supply chain visibility, improve efficiency, and optimise stock management.

Located on the right-hand side of the pallet, the QR code can be linked to the goods being transported, and gives users other essential information such as the pallet manufacturer, age of the pallet, how many times it has been used in the EPAL network, the number of repairs it has had, storage times, and location.

Pallet users can share this information easily with its partner suppliers and customers in the supply chain. The improved visibility will reduce pallet loses because it enables businesses to know exactly where their pallets are located and enable swift action in the case of events such as product recalls.

The QR code is marked on the Euro pallets with long-lasting inkjet printing, successfully tested within the EPAL network, and readable with a standard barcode reader.

Felicity Smith, National Secretary for EPAL UK & Ireland, said: “The Euro QR pallet is a significant development for EPAL, adding traceability to the list of benefits users already enjoy from being part of the EPAL network. It is an innovation that means EPAL pallets now not only protect the goods they are carrying but can also provide operational data that is essential for an efficient modern supply chain.”

The Euro QR pallets are manufactured and repaired to the same independently audited quality standards as regular EPAL pallets. The pallets are freely exchangeable within the existing EPAL international pallet pool across 35 countries. Administering some 650 million EPAL Euro pallets and 2 million box pallets internationally, EPAL is the world’s largest open exchange pool.

Pallet Control Tower Europe Launch

During the international annual meeting of all European EPAL members, Pallet Control Tower b.v. (PCT) joined the Dutch EPAL department. PCT launches a new European standard in collection, delivery and matching of Euro pallets and other RTIs.

The 24/7 online platform uses blockchain technology and is therefore able to convert the value of new and used pallets into e-Credits. These e-Credits are collected, stored, and spent in the participants’ e-Wallet. This creates an open pooling system with the strengths of a closed system.

In recent years, the price of Euro pallets has risen and fluctuated. The physical ‘swapping’ of pallets is becoming increasingly difficult due to the increasingly complex international logistics chains. The use and settlement of pallets, on the other hand, is becoming increasingly important and more comprehensive. Rules between companies are not always clear. Drivers don’t have the time or knowledge to ‘swap’. And transporting empty pallets in trucks is certainly not sustainable. Something that Buck Consultants International also observed in an earlier study.

The research was part of the basis for this new platform. In the system, end users, transporters / DCs and pallet depots, traders and manufacturers are linked to each other. A virtual network is created in which Collection, Delivery & Matching of EPAL Euro pallets and other RTIs is possible 24/7 and throughout Europe. Pallets are given a value based on the EUWID and are discounted in a wallet via an e-Credit. Physical delivery is thus reserved to nearby depots, traders or manufacturers. This creates a sustainable system that anticipates new regulations from Brussels.

PCT Online will be rolled out throughout the entire logistics chain in the coming months. Interested parties can find more information (including a video) on the website www.palletcontroltower.eu or request a demo.

Wooden Pallet Manufacturing and Re-use Uplift

Manufacturing and reuse of wooden pallets increased significantly according to the most recent survey commissioned by the Timber Packaging & Pallet Confederation (TIMCON) and the research arm of the Forestry Commission, Forest Research.

The UK Wood Pallets & Packaging Market survey showed that UK manufacturers produced an estimated 48.6 million in 2021, up 8.3 per cent from 44.9m the previous year. These manufacturers repaired and sold on for reuse a further 16.2m pallets, up from 15.6m in 2020. Overall, pallet repair was down slightly, at 48.1m, compared with 49m the year before. The annual survey is based on a questionnaire answered by TIMCON members, who manufacture approximately 80 per cent of the 50 million new pallets produced in the UK every year.

Commenting on the figures, TIMCON President John Dye said: “It is encouraging to see that this report shows a substantial uplift in the number of new pallets manufactured. While there was a small drop in the reported number of pallets inspected and repaired, this number is still similar to the number of new pallets – and I would expect to see it start to rise again in the months ahead, and also be boosted by the formal implementation of the UK Government’s eagerly awaited reuse incentive in 2025.”

Dye added that the manufacturing increase has led to corresponding growth in sawmilling output into the pallet and packaging sector of around 13 per cent, to 1.61m3. He also noted that employment in the pallet and packaging industry had risen to 4,221, a year-on-year increase of 23 per cent.

The report was presented to TIMCON’s general meeting held in Manchester during March, which also heard updates on TIMCON’s work with the UK Government, including the recent consultation on the reform of existing Packaging Waste Regulations and the new Extended Producer Responsibility (EPR) for Packaging Waste, due to come into force in 2025. As a result of this work, said Dye, Defra announced earlier this year that it was still considering the recycling target for wooden packaging and, rather than setting recycling targets for wooden pallets, it is now considering options for reuse obligations before recycling.

Thomas Hare of environmental consultant Valpak gave a further update on the expected timeline for implementing the EPR for packaging, which he said would significantly increase admin and was expected to generate a £1.7 billion in total annual costs for obligated businesses.

FEFPEB President Rob van Hoesel and General Secretary Fons Ceelaert attended the meeting. Ceelaert gave an overview of the latest developments in European environment-focused legislation as part of the European Green Deal, including the EU Circular Economy Action plan to reduce net greenhouse gas emissions by at least 55 per cent by 2030. He said the wooden pallet and packaging industry was engaging with the review of packaging and packaging waste regulations (PPWR) and that FEFPEB now has an PPWR taskforce to manage the process and highlight the “unique contribution of the sector to a sustainable world.”

Charlie Law, Sustainability Director at Timber Development UK, presented the timber industry’s Net Zero Roadmap to the meeting. Timber Development UK signed up to the SME Climate Hub Commitment in January 2022, pledging to support its members in halving greenhouse gas emissions before 2030 and achieving net-zero emissions by 2050. Law highlighted that timber related industries in the UK are responsible for around 1.58 million tonnes of territorial CO2 emissions annually, around 0.35 per cent of the country’s total. This, he added was ‘very low compared to other industries’, such as steel (12m t, 2.7 per cent of the total) or concrete (7.3m t, 1.5 per cent of the total). He said that it was essential to measure product flows in every timber industry in order to start reducing carbon emissions, something he added the pallet and packaging sector ‘has a really good handle on’.

The TIMCON meeting heard updates on the organisation’s other work, including its collaboration with the NWPCA in the US, and the Global Wood Packaging Forum and engaging with the UK government on issues such as sourcing workers from overseas and the post-Brexit Windsor Framework.

Dye was among the members of the pallet and packaging sector who said goodbye and thank you to TIMCON Past President Gil Covey, who is retiring from the industry at the end of April, after 33 years. Covey also served as FEFPEB President for more than 10 years before becoming Treasurer of the organisation, and is currently Non-Executive Director of James Jones & Sons (Pallets and Packaging) Ltd.

EPAL Reports Record Pallet Repair Figures

EPAL UK and Ireland has reported an uplift in the number of pallet repairs carried out across its network, as customers seek to mitigate the impact of growing supply chain costs.

The organisation, which administers the EPAL system for the UK and Ireland region, said more than 100,000 pallet repairs took place for the first time during 2022, as businesses increased pallet reuse for reasons including sustainability and reducing costs.

Production of new EPAL pallets also grew year-on-year in the UK market in every month of 2022 to a total of 1 million across the year, a record for the country. In Ireland, production remained largely stable, despite challenging conditions that affected availability of timber at times during the year.

Felicity Smith, National Secretary for EPAL UK & Ireland, said: “We are really pleased to see reuse of EPAL pallets going up for another year to hit these record levels. Driven by increasing cost pressures, as well as the increasing legislative and customer demands on sustainability, more supply chains are looking to recondition, repair and reuse their pallets. The EPAL network of licensed repairers is expanding, which is making it easier for them to do this.

“This, alongside the growth we saw in the production of EPAL pallets during 2022, is further indication that more customers are asking their suppliers to use EPAL to make their supply chains more efficient, sustainable, and ISPM 15-compliant.”

Administering some 650 million EPAL Euro pallets and 2 million box pallets internationally, EPAL is the world’s largest open exchange pool.

 

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