It might sound like déjà vu, but the price of new wooden pallets is expected to soar a further 18% this month, on top of the 18% rise we saw in January, according to Goplasticpallets.com.
Continued pressure on the availability of timber and issues with log felling licenses in Ireland have been cited as the main reasons for the nearly 40% price increase according to a letter from a major supplier of wood packaging material, stated the plastic pallet provider in a release.
While the UK housebuilding sector remains buoyant, the UK wood packaging industry has been forced to compete with other markets for timber stock, namely fencing and DIY products. This competition is expected to increase further with the better weather as consumers continue to invest in home improvements and gardening retail products – a sector that saw a huge 50% increase in online sales following the first UK lockdown.
It seems there is little relief in sight for the wood packaging industry, but for the plastic pallet market, it is quite a different story.
Jim Hardisty, Managing Director of Goplasticpallets.com, said: “As the price of wooden pallets continues to rise, we’re seeing the price gap with our recycled plastic pallets rapidly narrowing. This could be a game-changer for the UK pallet industry.
“We’re already seeing more widespread use of plastic pallets in the food and pharmaceutical industries – which has increased further since the Covid-19 pandemic, but the export market too is recognizing the benefits of switching to plastic.
“In January new post-Brexit trade rules made it compulsory for all wooden pallets carrying goods between the UK and EU to be heat treated and certified to meet ISPM15 regulations. Failure to do so could see consignments being rejected at the borders – another major setback for wooden pallet users. Heat treatment capacity in the UK is already being stretched to its limits, yet whilst this goes on, plastic pallets remain completely exempt from ISPM15 heat treatment requirements.”
Goplasticpallets.com supplies the UK’s widest range of plastic pallets and is able to deliver large volumes direct from stock. For expert pallet advice, call 01323 744057 or email email@example.com.