LOGISTICS
Finally , the pallets that circulate around England ’ s roads and freight routes aren ’ t necessarily in the right place at the right time . Some have suggested using improved RFID ( radio-frequency identification ) to track where pallets are and where they ’ re going . But while we ’ ve seen an increase in companies offering track-and-trace solutions in recent years , introducing any new tech will take time .
How Are Logistics Companies Affected ? They have to pass costs on to their customers and consumers . Weber Logistics , for example , has started to update its rates per pallet each Monday based on current prices . ‘ We ’ re doing everything that we can do to buy pallets at the best market price ’, Robert E . Lilja , CEO of Weber Logistics , explains . ‘ We buy in truckload quantities . Unfortunately , demand is currently exceeding supply , and many pallet vendors won ’ t accept purchase orders from new customers ’.
As a result , pallet makers doubled down to serve their current customer networks , leaving many out of the loop . ‘ Every pallet that we provide our clients has turned into a net loss ’, says Lilja . Pallet prices have risen by roughly 100 % across the board . According to Bloomberg , the Producer Price Index ( PPI ) shows that the pallet category has risen for 13 straight months — increasing by 31 % this year alone .
When Will It Return To Normal ? Not tomorrow by any stretch of the imagination . B & B Albany Pallet Company , located in one of the highest lumber cost regions of the US , expects a lengthy recovery . ‘ Our speculation is that we may see a return to normalcy in late Q4 ’, says Dorian Orellano , Pallet Sales , Design & Production . ‘ But considering the supply chain bottlenecks occurring throughout the world , [ the shortage ] may persist into mid-Q1 2022 ’.
98 September 2021