The Forgotten Shipping Pallet Stages a Pandemic-Era Rally
Bloomberg 5 hrs ago
(Bloomberg)
After carrying the weight of the global economy since World War II with little fanfare, the lowly shipping pallet is finally commanding some respect.
Demand for the platforms used to haul nearly every consumer good or industrial ingredient is soaring amid a surge in e-commerce, forcing retailers and manufacturers to expand warehouses or pile inventories higher. At the same time, two keys to production cheap lumber and labor are scarce, and even nail costs are rising.
The result: Pallet prices have hit record highs, according to a U.S. Labor Department index, and European gauges show big jumps from the U.K. to Germany. The market may stay hot through the peak construction season in the springtime and as Covid-19 vaccines help revive restaurants and event venues adding to inflationary pressures rippling across supply chains.
The forgotten shipping pallet stages a pandemic-era rally
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The forgotten shipping pallet is staging a pandemic-era rally
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Jacob Hodes
There are approximately two billion wooden shipping pallets in the United States.
1 They are in the holds of tractor-trailers, transporting Honey Nut Cheerios and oysters and penicillin and just about any other product you can think of: sweaters, copper wire, lab mice, and so on. They are piled up behind supermarkets, out back, near the loading dock. They are at construction sites, on sidewalks, in the trash, in your neighbor’s basement. They are stacked in warehouses and coursing their way through the bowels of factories. The magic of these pallets is the magic of abstraction. Take any object you like, pile it onto a pallet, and it becomes, simply, a “unit load” standardized, cubical, and ideally suited to being scooped up by the tines of a forklift. This allows your Cheerios and your oysters to be whisked through the supply chain with great efficiency; the gains are so impressive, in fact, that many experts consider the pallet to be the most important mater