Wooden pallets, as the basics of bulk transportation in the supply chain, are a humble asset in isolation, and their importance is easily overlooked, but in general, when their availability or price increases go wrong, pallets suddenly become a hot topic. Especially under the global port congestion, more wooden pallets affected by the sea freight blockage the turnover rate is reduced, making more wooden pallets needed.
Lumber prices hit record highs in January-May this year due to increased activity and demand in other wood-using industries, such as construction and furniture. Wood prices have fallen recently, but when timber prices are high, the price that the pallet industry needs to pay for fiber and wood also rises, resulting in a reduction in the number of pallets built and limited supply. At the same time, as the epidemic begins to subside and the economy picks up, the demand for palletized goods remains strong.
As Doug Gaier, Purchasing Director at Millwood, a leading supplier of packaging materials, recently noted,
These dynamics, combined with labor shortages and other long-standing problems in the pallet industry, have laid the groundwork for some challenging times. The pallet market is actually explained by the simplest economic principle, supply and demand.
#2021年发布的托盘报告中反映:
These supply-constrained times are reflected in our survey, which asked about pallet usage trends, not only wooden pallets, but also other types such as plastic and metal pallets. The survey asked about changes in usage levels, the most commonly used sizes, the use of new and old pallets, and the use of pallet rentals or shared services.
Overall, some things remain the same – for example, wooden pallets are still the most common type of pallet. However, other pallets have increased this year due to availability and cost issues.
The wooden pallet is still the top stream
Wood is still overwhelmingly the top type of pallet material. This year, 94 percent of respondents said they used wooden pallets in their operations, the same as last year. Another 37 percent said they use plastic pallets (same as in 2020) and 12 percent use wooden composite pallets, even in previous surveys. Another 6% of companies use metal pallets, 4% use cardboard or corrugated cardboard, and 1% use other materials.
Standard 48 x 40 inches are used the most
In terms of pallet size, the vast majority (80%) of respondents use the standard 48 x 40-inch version, up from 68% in 2020. 24% use a slightly larger 48 x 48-inch square pallet, while 12% use a 42 x 42-inch tray. The 36 x 48-inch pallet (10% this year) and the 36 x 36-inch pallet (8% this year) reported smaller use compared to the previous year, but the reported use of a slightly larger proportion (13%) This year's 24 x 20-inch "half pallet" size increased by 2%.
The utilization rate of new and old pallets has increased
This year, 60 percent said they bought new wooden pallets, up from 53 percent last year. The use of old wooden pallets has also increased. Last year, 61% of respondents said they had used old pallets or "core" pallets (the industry term for old wooden pallets that can be refurbished), and this year the percentage rose to 73%. Pallet pool utilization has dropped from 24% in 2020 to 18% this year.
The purchase price of old pallets was higher than in previous years
Significant issues were reported in terms of the difficulty and cost of purchasing old wooden pallets in 2021. While the level of quality reported is fairly stable, 47 percent of people this year say fewer old wooden pallets are available, a 20 percent increase from 27 percent last year. In addition, 33 percent of respondents said it would cost more to acquire old wooden pallets this year, compared to 9 percent last year.
New trends: plastic pallets are on the rise, rental models are on the rise
This year, 18 percent are using more plastic pallets, up slightly from 15 percent last year. More than half of respondents (66 percent) said their plastic pallet use levels had not changed in the last year, up 3 percent from last year. 12% of respondents are using or planning to use a pallet rental company, up from 9% in 2020.
International trends
By 2021, 45% of companies say pallet transport is mostly used in the country, down from 66% in 2020. Another 53 percent of companies said they transport pallets both nationally and internationally this year, a percentage that has risen. These findings may be related to the impact of the pandemic and the gradual opening up of international trade and travel in 2021.
In terms of countries and regions to which pallets are shipped, Canada and Mexico, South America and the Caribbean account for the highest proportion. While the number of companies shipping pallets to China, Japan, Southeast Asia, North Asia and Oceania plummeted to 33 percent last year, this year the number has rebounded to 55 percent, more in line with pre-pandemic levels.