Palletcentrale supplies a broad range of new and used pallets, both nationally and internationally. With five branches and their own production, the pallet company offers a 100 per cent availability guarantee. The increasing wood prices, however, are currently causing wood shortages.
The wholesaler of used and new pallets and related products was founded 50 years ago. In the following years the company grew into a business with 110 employees, divided over five locations. Its main branch is in Moerdijk, the Netherlands. The other branches are in Helmond, Rotterdam and Middenmeer. For five years now, Palletcentrale has had its own production location in Sas van Gent. About two million pallets are produced here every year. “We offer a total solution because of this. We sell new and used pallets, and besides, we buy up surplus pallets. These are reused, repaired or recycled. Customers can also come to us to rent pallets,” says Frank Bennemeer of Palletcentrale Group.
Every year, Palletcentrale sells about six million pallets. Of these, two million are own production and the remaining four million are used pallets that have been bought from large-scale consumers, distribution centres and others. Frank: “We mostly work with permanent suppliers, but anyone could actually sell their surplus pallets to us. We even come pick them up when it’s more than 50. Our own lorries drive through the Netherlands, Belgium and Northern France to pick up and deliver pallets all day.” Customers are mostly production companies and logistical service providers in various branches. Depending on the products that have to be transported and their requirements either a used or a new pallet is chosen. “In pharmacy, new pallets are used exclusively. The same is true for so-called aeroplane pallets, which are mostly used in fresh produce. These lightweight pallets have been made especially for aeroplane transport. Fully automated companies can only use new pallets as well.” Frank says many used pallets are used in fresh produce, Europallets or display pallets of 60 x 80 are often asked for, particularly for shorter distances.
Most sustainable material
About 35 per cent of used pallets that arrive at Palletcentrale have to be repaired. Only a small part ends up on the pile to be shredded. “Wood is by far the most sustainable material. Although certain branches increasingly ask for plastic pallets, which we also supply, I don’t think plastic is a direct competitor. For packed products, wood is much cheaper and environmentally friendlier. Moreover, requirements are becoming stricter.” As an example, Frank mentions that in more and more countries, the imported wood packaging is obligated to be ISPM 15-treated to prevent the spread of harmful organisms. This mandatory heat treatment is applied to all pallets exported or imported outside of the EU. Palletcentrale has multiple drying ovens at its disposal for Heat Treatment (HT). Unfair competition is also tackled. Last year, Epal decided to end the exchange agreement with UIC. “Cheap pallets are produced on a large scale, particularly in Ukraine, that erroneously have the UIC/Eur designation,” he explains.
Palletcentrale has a constant flow of supply and transport of pallets, and Frank says this is necessary to keep their stocks up. “In principle, we offer a 100 per cent availability guarantee , but we also regularly supply customer-specific products. For some shipments, different sizes are requested, which we manually make. We always have standard sizes in stock. Because we have a large permanent clientele, we can now guess who needs what at what time quite well.” Frank says they’re also becoming more and more active online. Suppliers can now offer surplus pallets via the website, but the online sales of pallets have taken flight in particular, according to him. “The online shop is ideal for incidental purchases. Ordering is very easy, and the pallets are delivered within a few days.”
Scarcity and high wood prices
In 2017, Palletcentrale once again managed to realise a record turnover. This was the sixth year in a row that the wholesaler of used and new pallets and related products showed an increase. “This growth is probably thanks to the fact that we offer a total solution. We notice that customers prefer having one contact for questions regarding pallets. Besides, the investment in online sales has also borne fruit. It’s resulted in an additional customer segment,” Frank proudly says. Although he’s positive about the future, the market currently also experiences some developments that are challenging. For example, the transport sector is currently profiting from a recovery of the global economy, but transport costs have increased considerably. Besides, the entire sector is struggling with a shortage of drivers, which comes at the expense of loading capacity. “Wood that’s ready at the sawmills can’t always be transported to the producers on time,” Frank says.
The current scarcity in wood in particular is an influence on pallets. The wood price has risen rapidly in recent months, so that pallets and crates have become more expensive. This is due to the limited availability of wood on the global market, and a considerably larger demand. Frank: “We expect that continued scarcity and price rises will follow, which is because of the economic developments, among other things. The economic growth in many countries means the number of transport movements is increasing. Besides, the European wood market has become a global market. China and India focus more and more on the European wood market, and are willing to pay for it. This, combined with frost and cold, means sawmills couldn’t enter the forests for a longer period, is leading to scarcity and more expensive pallets. We personally aren’t experiencing major problems yet, but longer waiting times and price increases can’t be avoided forever. That’s why we decided to give priority to serving our current and permanent customers first, and that’s been going well so far.”
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Palletcentrale
Frank Bennemeer