PalletTrader Market Report: Buyers and Sellers Cautiously Optimistic in Q2

• PalletTrader Market Report: Buyers and sellers remain upbeat despite tariff and cost pressures.

• Outlook for peak season positive, but caution persists amid inflation and trade uncertainty.

Despite inflation, tariff worries, and mounting operating expenses, a new PalletTrader survey finds that most pallet buyers and sellers remain cautiously optimistic about short-term demand and market momentum.

The third edition of the Pallet Market Survey Report, released June 30 by PalletTrader, provides a snapshot of industry sentiment drawn from hundreds of North American participants—manufacturers, resellers, brokers, and pallet buyers across sectors like freight, warehousing, and manufacturing.

While overall mood is upbeat, the report doesn’t gloss over the storm clouds forming on the economic horizon. “Our third semi-annual survey found that both the current viewpoint as well as future outlook sentiment among pallet market participants was generally optimistic yet tempered by a number of potential short- and long-term headwinds,” said John Vaccaro, CEO of PalletTrader.

Tariffs and Lumber Costs Emerge as Top Concerns

Among the most cited concerns? Tariff policies, with 60% of respondents anticipating a negative impact on the pallet sector. New duties and escalating trade rhetoric are already sowing uncertainty, especially in an election year.

Lumber prices are also expected to climb. Again, 60% of survey participants forecasted higher lumber costs in 2025, signaling potential strain across both new pallet production and reconditioned supply chains.

Inflation, logistics expenses, and labor remain ongoing cost challenges. “Choppy economic activity” and fluctuating fuel and freight costs were also referenced by survey participants as inhibitors to pricing stability and future growth.

Prices Holding—For Now

Despite these concerns, pricing for white-wood pallets over the past six months has remained “generally flat to slightly increasing,” according to the report. Some sellers noted intensified competition that is depressing local prices, while others cited improved demand holding pricing firm.

These dynamics reflect what PalletTrader calls “a stable but tenuous balance” between supply and demand. While modest growth was expected from existing customers, some 42 percent of suppliers and 56 percent of buyers anticipate substantial growth from new customers, according to the report.

Inventory Normalizing, Supply Stable

One of the more reassuring takeaways: on-hand pallet inventory levels are stabilizing. Two-thirds of respondents reported they hold two weeks or less of inventory—down from pandemic highs that saw some yards bulging with slow-moving stock.

Only 10% said they had more than 30 days of inventory, a strong signal that warehouses are moving stock at a healthy clip.

On the supply side, 71% of those surveyed reported no change in pallet availability over the last six months. And 79% expect no significant shift in availability through Q3.

Outlook for Peak Season

Looking ahead to the traditional late summer and fall shipping surge, many respondents anticipate solid demand, particularly from new customers. While no runaway growth is forecasted, the mood is one of quiet confidence, conditioned by years of volatility and tempered by inflation and labor shortfalls.

Vaccaro sees these mixed signals as a call to remain nimble. “Among the most widely cited concerns were choppy economic activity due to uncertainty over tariff policies, their scope, duration and potential impact on growth and costs,” he said.

About the Survey

Conducted over a three-week period in April and May, the survey drew from a wide mix of pallet ecosystem players, providing insight not just from traditional manufacturers and brokers, but also from end users in warehousing, freight, and distribution.

The report offers a detailed look at buyer and seller expectations on pricing, inventory levels, raw material costs, and economic sentiment, making it a useful pulse check for anyone tracking pallet market trends.

A free copy of the full survey is available from www.pallettrader.com

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Rick LeBlanc

Rick LeBlanc, EMBA, is the founder and editor of Reusable Packaging News (subscribe to the free newsletter) and editor of Western Pallet Magazine. A supply chain journalist with more than 30 years of experience, he specializes in pallets, reusable packaging, material handling and related operations. Rick is co-author of Pallets: A North American Perspective and Pallets & Progress: A Collected History of Pallets and Palletized Handling 1922–1945. He is also an advisory board member of the Virginia Tech Center for Packaging and Unit Load Design. Read Rick’s full bio.