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Covid-19 crisis: risk of global shortage hangs over wooden pallets

2021-04-10T09:22:32.182Z


The prices of wood have increased in the context of the health crisis and logically increase those of pallets, essential for the transport of goods.


They are the discreet but essential supports for the transport of goods.

In high demand, transport pallets are more and more expensive, due to a shortage of wood that affects many sectors, such as construction.

Concretely, the price of a pallet, which fluctuated between 9 and 12 dollars in 2020, exceeded 15 dollars in 2021, notes Bloomberg.

Read also: Shortage of materials and soaring prices worry the construction sector

The wood used to build the pallets is of lower quality compared to structural lumber (used on construction sites) but the two materials see their prices rise in a comparable manner.

Behind this increase, several factors: first of all, the supply chains were disrupted by the health crisis.

Then, the sudden restart of economic activity led to sudden surges in demand and therefore to a rise in prices.

A sector that no longer attracts

In addition, there is a lack of manpower.

Pallet woodworking is difficult and disaffected by workers, Bloomberg notes.

This situation of tension makes producers not very flexible in the face of an increase in demand.

But "

supply is barely enough to meet demand,

" warns Howe Wallace, director of manufacturer PalletOne.

Read also: There is "no shortage of toilet paper" in France, reassure the manufacturers

5 billion transport pallets are currently in use around the world.

Of that number, 2 billion are in the United States and 90% of them are made of wood.

Of the remaining 10%, between 5% and 6% are plastic.

These are lighter and generally stronger, but they are also about three times as expensive.

These plastic models, coveted during a pandemic because they are easier to disinfect, are also the subject of a demand that exceeds production capacities.

The American multinational Costco, specialist in mass distribution, has for example announced its desire to do without wooden pallets and rely on plastic pallets.

Read also: Launch of a private fund to develop the wood industry, especially for construction

But the price barrier makes this pivot to plastic difficult for many companies.

Demand for wooden pallets does not look set to abate in the coming months, as vaccination campaigns around the world fuel hopes for an economic recovery, and with it an acceleration in world trade.

"

Wooden pallets will continue to dominate the market as long as we do not know how to teleport toilet paper from the store to home

," sums up in the tone of humor Marshall White, professor at the University of Virginia interviewed by Bloomberg.

Source: lefigaro

All news articles on 2021-04-10

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