Odd Lots Why the Price of Wooden Shipping Pallets Has Soared
Dec 13, 2021
Marshall White, Professor Emeritus at Virginia Tech, dives into the world of wooden shipping pallets, highlighting their underappreciated importance in global supply chains. He discusses the recent price surges stemming from labor shortages and pandemic-related disruptions. White explains how the pallet industry is adapting with automation and emphasizes the critical role of pallets in logistics. He also compares plastic versus wooden pallets, revealing the economic implications and challenges each face in modern shipping.
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Pallet Durability and Damage
- Forklift impacts cause the most damage to pallets, not necessarily heavy loads.
- Using higher quality fasteners improves pallet resistance to damage, especially during handling.
The Pallet Shortage
- The "pallet shortage" was an imbalance of supply and demand exacerbated by labor shortages and climate events.
- The pandemic, West Coast fires, and a surge in agricultural demand in spring 2021 all played a role.
Labor Shortage Impact
- Labor shortages in pallet factories and the lumber industry affected pallet production.
- Government unemployment stimulus slowed the return of workers, contributing to the issue.