The National Association of Pallet Distributors (NAPD) is
advising supply chains that rising costs of raw materials and
other inputs are placing increasing pressure on the used pallet
market.
The organisation, which represents the UK pallet repair and
reconditioning industry, says June PMI data for the UK market
shows timber, pallet timber, reused timber, pallet logs, and
other components are all up in price.
The monthly report also points to continued upheaval in the
market caused by port and other shipping disruption, customs
delays, materials shortages, and the impact of impending trade
tariffs.
In the last two months, both the Timber Packaging & Pallet
Confederation (TIMCON) and the European Federation of Wooden
Pallet and Packaging Manufacturers (FEFPEB) have also both
highlighted independent measures showing significant upwards
movement.
Paul Tait, NAPD Chairman, said: “The latest UK market confirms
what our members have been telling us; that the market for
reconditioned pallets is now facing many of the same pressures
affecting production of new. This includes rising inflation in
the price of timber and for labour and logistics.”
Saleh Hijazi, press officer for NAPD, said: “In April, FEFPEB
pointed to the rising price of sawn timber across parts of
Europe, despite flat demand. The organisation’s pallet timber
price index – which collates measures in Germany, Italy, the
Netherlands, Sweden, and the UK – showed all countries apart
from Italy tracked upwards during the first quarter of the year.
“The following month, TIMCON highlighted increasing prices, with
the UK’s AFRY index rising 0.6% for the first quarter of 2025,
and Germany’s HPE index for pallet timber up 7.1% between
January and April – all of which is impacting on the businesses
in the repair and reconditioning sector, too.
Source: packagingnews.co.uk