Are pallet shortages on the horizon or has severe winter weather disrupted pallet flow through the supply chain?
This is the question many pallet companies are asking as inventories are rapidly being depleted while inbound pallets to repair are down. Inline with the overall US economy, pallet demand began to increase throughout the second half of 2010 and into 2011. Over the past 4 weeks, demand has remained strong while the inbound supply has dramatically decreased creating a shortage of inbound pallets. Has severe weather and a delay to the spring distribution cycle created the imbalance in pallet supply or is this a trend where one should expect a pallet market similar to 2005 through 2008? This answer should be clear by mid-April to early-May.
In the meantime, the immediate impact of these market conditions will be lead times. Please plan your pallet needs as far in advance as possible to ensure the uninterrupted operation of your business. When business is slow and inventories are high, last minute orders can easily be filled. In today’s market, this is not always possible. Allowing for 2 to 3 days of lead time should ensure your needs can be met.
Please contact me if any questions exist.
Paul Lovett
President
Lovett Pallet Recycling, LLC
