By Travis Cleven
May 21, 2021 | 2:55 AM
The United Fresh Produce Association says pallet shortages are hurting the produce industry. The organization says the lack of pallets adds to the challenges they’re facing. For example, other issues include a lack of available trucks and shipping containers, labor challenges, and a unsettled shortage of resin, which is used to make reusable containers and pallets. They say that the pallet shortage will continue for months, possibly until the end of 2021.
The shortage of lumber and wood products has increased the cost of lumber by 200 to 350% and makes the cost of wood pallets increase significantly. Some report over the past few weeks, pallet costs have gone up over 400%, if they’re even available. The organization warns that without making sure pallets are available for produce shipments, “there is little doubt that it will be very difficult, if not impossible,” to meet consumer produce demand.
SEPC in full support of PMA and United Fresh merger
Southeast Produce Council’s (SEPC) Executive Committee convened in early May and expressed full support of the recent merger between Produce Marketing Association (PMA) and United Fresh Produce Association (United Fresh) who will consolidate to create a new global trade association.
Since its inception in 1999, SEPC’s mission has remained steadfast in promoting the consumption of fresh fruits and vegetables, specifically in the 10 Southeastern states it represents. There are many solutions that are needed to advance our industry into the future, and the SEPC applauds PMA and United Fresh for joining forces to prioritize value for their member groups. The SEPC welcomes future opportunities to work together with this new association to drive value and meet industry needs through aligned efforts.
The United Fresh Produce Association says pallet shortages are disrupting the produce supply chain.
The organization says the lack of pallets is adding stress to a supply chain that is already facing significant challenges. Other supply chain issues include a lack of available trucks and shipping containers, labor challenges and a pending shortage of resin used to make reusable containers and pallets.
Expectations are that the pallet shortage will continue for months, perhaps for the balance of 2021. The shortage of lumber and wood products has increased the cost of raw lumber 200% to 350% and makes the cost of wood pallets increase incrementally. Some reports over the past few weeks, pallet costs have increased more than 400%, if the pallets are even available.
May 19, 2021
Although conversations are occurring within the North American (and global) industry relative to the current acute pallet shortages, many do not yet realize the factors impacting the situation and the potential scope of the issue, including the availability of produce to consumers.
A multitude of issues are impacting pallet availability including:
Efforts of wholesalers, distributors and retailers to ensure sufficient inventory of non-perishables given previous pandemic-related impacts.
The availability of lumber to repair and build new pallets.
The escalating price of lumber when it is available.
Non-perishable inventory dwell time increase.
Lack of available trucks to relocate pallets.
The lack of pallets is adding stress to a supply chain that is already facing significant challenges that include a lack of available trucks and shipping containers, ongoing labor challenges, fluctuating fuel costs, pandemic-related challenges and a pending shortage of resin used