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Shortage of pallets increases warehousing costs

Pallet availability and the resulting costs related to demand exceeding supply are a thing now, since Russia went to war against Ukraine on February 24. Prior to the invasion, pallet production and distribution were already in short supply, adding to existing Covid-related supply-chain concerns by creating more challenges in packing, handling, and the storing of goods.

According to a French trade association representing 120 companies, La Chaîne Logistique du Froid, pallets are becoming more and more difficult to find. It listed raw materials required for pallet production, especially wood, as the main reason for the worsening shortage. As a direct consequence of the situation, the per-pallet price has spiked from €7 to €29.

The most important reason for the steep increase in price is believed to be the situation in Ukraine, a major producer of industrial wood and exporter of pallets. It is no longer able to provide the 15 million pallets per annum for supply-chain use all over the world because of the havoc Russia has unleashed.

Source: freightnews.co.za


Photo source: Dreamstime.com


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