Talking To The Source: Dr. Jennifer Russell of Virginia Tech and the Circular Economy

*Editor’s Note: The viewpoint and statements of the following post may not reflect the views of Nature’s Packaging, however, we are always committed to providing an open forum for all members of the forest and forest products community.

Dr Russell, what is your role at Virginia Tech, and what is your area of expertise?

 I am an Assistant Professor in the Department of Sustainable Biomaterials, at the College of Natural Resources and Environment. My area of expertise is in economic systems-modeling, with a focus on the environmental impacts associated with industrial use of resources and energy.

Our conventional economic system generates a significant amount of solid waste, consumes a significant amount of fuel and energy, and distributes a lot of pollutants into the water and atmosphere. This system becomes even more problematic when we consider that every product requires materials that must be extracted from the earth and that are destined to go to a landfill when the user is finished with it.

Given all of this, I study how we can incorporate innovative changes into business models and material flows in order to achieve a system that is more ‘circular’ — in which flows of waste materials and products can be integrated as inputs into new production and manufacturing. This effectively reduces the loss of valuable materials into landfills, and it offsets some of the need to extract new materials and resources for inputs to production.

Throughout this system, there are opportunities for reduced energy consumption, reduced emissions, and even increased employment opportunities. This alternative economic framework is called “Circular Economy”, and it is a concept that governments and businesses around the world are engaging with and adopting, increasingly, over the past 10 years.

What is your current area of research in the topic of the “circular economy”?

I am very interested in contributing to the realization and operationalization of circular economy practices and processes – in other words, how are we making these changes now, given the legacy systems, infrastructure, and cultures that exist (and that might pose challenges).

Much of the research in circular economy is focused on high-tech innovation and industrial solutions – these are very important; but also important are the activities, processes, and behaviors that are accessible to everyone around the world.

 For this reason, a lot of my current research is focused on the challenges and opportunities related to the increased practice of repair and reuse. Arguably, anyone in the world can engage in these practices, and there are not really many stringent barriers to people participating in repair or reuse.

These processes have also been common-practice for many communities for centuries – they are not ‘new’; However, the ways in which we value these activities, as a society, has changed. Where, a century ago the mending and repairing of goods and equipment was common practice and expected, many categories of goods and equipment have become ‘disposable’; there is a lot of evidence of the decline of the independent repair community, and the relegation of reuse to something only done for charitable purposes.

Other ways I am exploring this theme of ‘operationalizing circular economy’ is through the lens of local policy solutions – how are community leaders and municipal governments engaging with the ideas of circular economy to move it forward in ways that respect local conditions and priorities.

You recently co-authored a UN report, “Re-defining Value – The Manufacturing Revolution”. Why is re-thinking how we manufacture industrial products and deal with them at the end of their useful life so important?

Industry’s singular pursuit of ‘efficiency’ has led to some major environmental and economic challenges. Not only do we have millions of tons of valuable materials being sent to landfill each year because, as a society, we have become normalized to the idea that things can just be ‘thrown’ away; we are also facing a realization that many of the resources and materials that we have relied on for the past 100 years are finite, and that we might actually run out of them.

Although the word “sustainability” is now used in a variety of ways, fundamentally, industry decision-makers are starting to think about the longevity, security, and resiliency of their supply chains – our ability to ‘sustain’, ourselves, our economies, our health, our way of life, and the future of our children.

The analogy of a “linear economy” really highlights this challenge: We take materials from the ground; we convert them into products; we use those products; and then we throw them away – a figurative “take–>make–>dispose” system. When we manufacture products in a linear system we also generate other negative environmental impacts associated with production: for every new product made, energy and fuel are consumed, solid waste and pollutants are generated, and emissions are released into the atmosphere.

Unlike nature, a linear economy does not replenish stores of valuable materials, and it does not return any nutrients back into the environment; it depletes resources in one place, and concentrates wastes and valuable materials alike into inaccessible landfills. It is easy to see that this model is really not sustainable at all.

The idea of cycling materials, components, and products within a circular economy is really about mimicking nature: In a forest there is no waste – every item within that ecosystem is part of an elaborate food web that includes plants, bacteria, herbivores, omnivores, and carnivores. The solution to our challenge of finite materials and environmental damage is to find the industrial analogy of a food web: In other words, how can we organize and manage material and product flows so that there is no waste, and so that we do not run out of the materials we need to keep our economies running?

Goals to achieve zero-waste to landfill can be helpful, because they focus on finding valuable applications and outlets for materials and products that are no longer wanted by the original owner. However, we cannot rely on recycling alone: Only a small subset of products and materials can be recycled; many products have components and materials that are so integrated, that we cannot separate them out to be recycled (e.g. old laptops and smart phones); and recycling processes can require a lot of energy. Further, many of the products entering the waste stream are still functional and have a lot of residual value.

Many of these waste stream challenges can be addressed much further upstream in the process, through improved design and manufacturing practices: designing products to be easily disassembled, easily repaired, modular, and/or upgradable are key ways that we can enable a product to have multiple long service lives.

Manufacturing products and reorienting business models in a manner that allows for the use of recaptured parts, instead of new parts, can significantly reduce the amount of new materials that are required for production, as well as the associated cost, energy, and time.

Join us next week on the Nature’s Packaging Blog for Part 2 of this interview.

Pallet Pool Class Specification: How does it affect supply?

When there are potentially millions of pallets in a pool, why do pallet buyers sometimes experience delays in filling an order? Often it can come down to the class (or grade) of pallet needed, according to one pallet broker who spoke anonymously to Nature’s Packaging.

For example, the customer requires a very high class 48”x40” pallet such as a “premium A grade” – one that looks almost new. If a pallet supplier does not have a ready inventory, a period of time might be required to recover the required amount from incoming empty pallets being recovered, sorted, and repaired.

In the case of the 48×40” pool, pallet recyclers produce a variety of grades from those incoming pallets. The higher grade ones are typically in greater demand and in shorter supply, so available supply can be an issue.

Even in the case of pallet rental programs, customers with extremely rigid quality requirements may require new pallets or pallets that have just been repaired versus sorted pallets, which can result in more limited availability.

It can seem counterintuitive that in a pool of possibly millions of pallets that there might tight supply, but that can be the case when the customer’s expectations are more stringent than that found overall in a pallet pool.

How pallet classes are managed in pallet pools

Some pools have detailed pallet specifications that must be met by pallet manufacturers as well as by pallet repair providers. This approach is followed by major pallet rental pools as well as cooperative groups such as EPAL – the European Pallet Association. Such pools utilize  inspection personnel to ensure that pallets are properly classified.

One point of separation is whether the pallet is designated for a “one-way” model or an “exchange” model. Some rental systems, particularly in North America, rely on the one-way approach.

Once wood pallets are emptied of the product by customers, they are returned to the pallet company service center for inspection and repair, if necessary. Such an approach provides for a classification assessment before pallet reissue.

In an open or exchange model, however, pallets may be redeployed without classification, and as a result, there is a greater likelihood of lower grade pallets in the pool.

Mind you, many product manufacturers require high-grade pallets to work efficiently with palletizers, conveyors and other automation, and so they will, by necessity, remove lower grade pallets from circulation and supplement, as needed, with higher grade pallets.

All of the pallet pools above can be categorized as formal pallet pools. They have detailed pallet manufacturing and repair specifications as well as ongoing management to ensure their ongoing viability. Other pools can be categorized as “informal” or “common” pools. One of these is the 48×40” whitewood pool in North America.

Unlike the other pools discussed above, the 48×40” whitewood pallet does not have a detailed specification, nor does it have an administrative body to manage any inefficiencies or challenges.

The pallets typically have similar overall dimensions but can vary regarding deckboard thickness or stringer width, for example, or in terms of lumber species and grade. It is a market-driven pool that reflects the purchase decisions made by pallet buyers.

As a result, there is considerable variety among pallets, which can create challenges in meeting supply when a customer has particular classification requirements. Typically, these challenges can be overcome when pallet providers have users clearly communicate their pallet needs to them. 

When pallet buyers have trouble sourcing pool pallets of higher grade, there are a variety of approaches that they can take:

  • If you are retrieving empty pallets from customers, work with a service provider who will pick up pallets as well as inspect and repair, as necessary, prior to returning them to you.
  • Work with a pallet service provider who offers on-site sorting and repair services.
  • Pursue longer-term relationships with pallet suppliers so that they have time to accumulate the required grade and ensure availability. In the case of the whitewood pool, another approach is to buy new pallets, thereby ensuring they meet requirements, and also boosting the overall availability of higher grade pallets in the pallet pool.
  • Develop a proprietary pool. Another way to retain grade classification  in a pool is to invest in higher quality pallets made from higher quality pallet components . Incremental investment in pallet quality such as better nails, for example, can result in reduced frequency of repair and a much longer pallet life. This, in essence, is the approach that has been taken by pallet rental companies. It is an approach also taken by companies that run proprietary pallet pools, where it makes sense for a particular supply chain.

Ultimately, pallet classifications in a pool can have a big impact on sourcing the pallets that you need, when you need them. As outlined above, however, there are solutions at hand to help you meet your pallet requirements.

 

Talking to the Source: A Conversation with Leigh Greenwood of The Nature Conservancy

*Editor’s note: The viewpoint and statements of the following post may not reflect the views of Nature’s Packaging, however, we are always committed to providing an open forum for all members of the forest and forest products community.

What does your organization do, and why is solid wood packaging an area of interest to it?

The Nature Conservancy is a global nonprofit with a mission to conserve the lands and waters on which all life depends. This means that we are an organization working around the world to protect all ecosystems from many types of damage- and forests are an incredibly important ecosystem.

Forests face many threats- illegal deforestation, forest fires, drought, attacks by insects and diseases, and more- and unfortunately, solid wood packaging can become a threat to the health of forests when it is infested or contaminated (either in the wood or on the surface of the packaging) with tree-killing insects and diseases.

What is your role? What does your day look like?

I’m the Forest Health Program Director, which means I spend my days working with colleagues and partners all around North America on the issues where I think we can make the greatest difference on the issue of non-native insects and diseases that reduce the health, safety, and beauty of our trees and forests.

Most days, I spend my time emailing and video conferencing with partners on my current focus areas; pests that can be better managed via improved firewood outreach and regulations, and pests that can be transported accidentally as part of the global supply chain.

Why do we need ISPM-15? What has happened in the past to warrant its creation?

Forest pests that infest live trees, like bark beetles and wood-boring beetles, are particularly problematic because they are both very damaging, and easily moved in infested packaging materials. ISPM 15 was created to allow for a set of approved treatments (usually heat treatment, but other listed treatments are acceptable) that render the wood in solid wood packaging functionally very unlikely to contain live pests.

Several types of very damaging insects- most notably the Asian long-horned beetle were being repeatedly transported internationally in infested pallets, which then led to a series of very serious insect infestations in the recipient countries.

ISPM-15 was designed to dramatically decrease the risks of using solid wood packaging so that this important part of the global supply chain could continue to be used around the world without further destruction of forests from these pests.

What is an example of an issue on your radar screen right now from an ISPM-15 perspective?

The ISPM 15 standard relies on the effectiveness of the plant protection organization (PPO) at the pallet’s country of origin to ensure that the treatment and stamp is conducted and applied properly. For instance, if a product is produced, boxed, and palletized in England and then shipped to the USA, it is the responsibility of UK’s Department for Environment Food & Rural Affairs to ensure that the treatment is correctly applied, not the responsibility of the receiving entity in the USA.

So the forest pests that I am most concerned about are not particular insects or diseases- but rather I am concerned about the chance of new and potentially very damaging forest pests in pallets originating in countries where the treatments required by ISPM-15 aren’t being adequately or consistently enforced by their PPO. While a given pest might be worrisome, the idea that many different types of pests might be coming in repeatedly from regions with poor enforcement is an even bigger issue in my mind.

What are the most worrisome types of pests- and why are they particularly concerning?

The pests that are accidentally transported in or on solid wood packaging can be roughly divided into two types- primary (wood infesting) pests, which are already in the bark or wood when it is initially harvested as a tree, and secondary (surface hitchhiking) pests, which attach later onto the surfaces of the packaging.

Primary pests like the Asian long-horned beetle can be well controlled with good consistent adherence to ISPM-15 by all trade partners- but there are some primary pests, and many hitchhiking pests, that I believe currently do not have sufficient policies and regulations in place to prevent them from entering North America. So what worries me is what might fall through the cracks- highly heat resistant pests, hitchhiker pests that contaminate pallets or crates after ISPM-15 treatments are completed, and others.

What would be your takeaway message to the forest products industry and to the wood packaging sector in particular?

The long term viability of solid wood packaging materials in international shipping will depend on outstanding international cooperation in adhering to ISPM-15. It is incredibly important to work with trade organizations and shipping specialists overseas to ensure they know about ISPM-15, why it is important, and how to comply. Solid wood packaging can be just as safe as any other shipping material if it is treated appropriately.

Talking to the Source: Conversation with a Lumber Broker

Lumber yard with forklift carrying a random length load

For this blog, Nature’s Packaging reached out to a lumber wholesaler based out of Canada within the Quebec province. The company supplies products to the wooden pallet industry as well as the fence industry. 

NP: What does a lumber broker do?

A good lumber broker offers value added to the product: when a mill is down, he should be able to ship from another mill. He can also offer different alternatives such as softwood, aspen, hardwood as well as different grades and dimensions. Most mills are specialized and limited to a certain number of dimensions and species.

By talking to customers in many states and areas, and talking to mills in different areas, the broker has a broad view of what is happening in the market. From the log situation to demand, the broker has a global understanding to share.

Good brokers have a diversified team communicating with hundreds of customers and many suppliers. Different personalities, different contacts, different experiences bring a wider range of perspectives.

Can you tell us what you do on a daily basis?

Our team talks to mills every day. We visit them on a regular basis. We are involved when it is time to look at new equipment so the production meets the customer’s requirements.

We also listen to our customers to match their needs with the mill’s capacity. Our participation in different associations keeps us well informed of the legal changes, the technological improvements, and allows us to network with equipment suppliers and help the mills and customers.

Industrial or lower grade lumber isn’t worth as much as premium grades. Why is it important to the overall lumber market, and particularly for wood pallet and packaging manufacturers?

The mills need to make money. Some cut higher grade logs and produce grade lumber. Some scrag mills produce only pallet grade lumber. SPF and SYP mills produce commodities that represent 80% of their products but the pallet lumber prices can make the difference between a good year and not making it.

It is important to be aware of what is going on in the higher-grade markets because they are directly affecting industrial lumber prices. When premium, #1 & #2 and stud prices are as high as they are today, it forces the builder to use #3 grade that is usually going to the Industrial markets, making availability and prices shift very quickly.

What about logistics and transportation management? Why is this area important to lumber supply?

Customers want “just in time”, they do not want inventories and mills needs cashflow. So scheduling the production, then the shipments to meet customer’s needs is an everyday challenge. Freight costs and availability change with demand and fuel costs.

Respecting the truckers and nurturing good relationships with them is as important as paying fast. Good people, good software, and great relationships are key ingredients to a high-quality logistics program.

The price of lumber has been particularly volatile, lately. What types of events cause such price movement, and what can you, as a lumber supplier, do to help buyers through such times?

COVID has changed our lives. Instead of traveling, we work from home, we cook more, we are building a new fence, a new deck, painting the house, building a shed…so that our “cocoon” is better and we keep busy!

Pallets move the world so your paint comes on a pallet, the screws, and nails for the deck and fence as well as many renovation products. Demand for lumber went up just as many mills were missing workers because of COVID.

Our job has been to work with our customers at trying other species and dimension, changing the ratios of 3 ½’’ vs 5 ½’’ to have a better supply. I cannot share all of our secrets but we have been supplying lumber solutions to many customers.

What are some of the biggest mistakes that customers make when it comes to lumber buying?

Some do not know what their actual cutting costs are and what their waste factor when cutting their own wood. When comparing to pre-cut lumber we can see that price is important, but the waste factor is part of the costs too.

Buying the lowest bidder can be dangerous. It is better to spread a bit and have more diversified sources. Working with a supplier when a problem happens is better than rejecting the load and leaving the other to deal with the problem.

If you could give lumber buyers one or two key takeaways from this interview, what would it be?

Suppliers are as important as customers. I can have all the customers but if I do not have the lumber, I am useless. If I have all the lumber and all the customers, I still need the truckers and they need to be treated with respect too.

Finally, a good broker must be competitive but is not always the cheapest. The team of professionals provides market information, is there to find lumber solutions for you, to bring various mills, species, dimensions, and grades so you can provide the shipping platform solutions your customers need.

pile of pallet wood scraps ready for recycling

How Wood Pallets are Recycled into New Products

Wood pallets are highly sustainable, in part because of their high rate of recyclability. According to the latest research available, 508 million wood pallets are produced annually in the U.S. each year, while only 25 million of them end up in landfills, down from 178.5 million in 1998.

Old wood pallet material is utilized in many creative ways. With a laudable recycling rate of 95%, most end-of-life wood pallets are processed to create other products. Recovered lumber is used for pallet repair or re-manufactured pallet components as well as other purposes, while unusable lumber is reduced to fiber for many applications.

This approach improves the economics as well as the sustainability of pallet recycling. Recovered wood is much less expensive than virgin material, and as such, it provides cost advantages versus new components both for repair as well as pallet re-manufacturing.

There are also sustainability advantages associated with this practice, known as “cascading use”. Cascading use refers to the method of recovering material for the next most valuable alternative – such as pallet boards, and eventually, fiber. This approach reduces the carbon footprint impact at each stage of use thanks to recycled material availability, which is much less carbon-intensive to produce than virgin fiber alternatives.

Here is what happens to end-of-life pallets:

Recovered pallet repair components

When pallets are too severely damaged to repair, or they are not a popular size, pallet recyclers typically dismantle them using a bandsaw dismantler. Broken components are sent to the grinder, while pallet recyclers use intact pallet boards or stringers to repair other pallets.

Recovered components used to build combo or re-manufactured pallets

Recyclers also use intact recovered pallet components in the assembly of combo or re-manufactured pallets. The variability of sizing in recovered pallet boards and stringers makes them more challenging to work with than new material. Increasingly, the pallet industry is turning to automated nailing systems as well as lumber sizing and sorting machinery to enhance the efficiency of re-manufacturing.

Recovered solid wood used for upcycling crafts or architectural projects

Old pallets have become extremely popular for upcycling arts and crafts projects, as well as pallet art. Architectural trends such as industrial chic embrace the look of weathered pallet wood material. As a result, some pallet recyclers are also now selling recovered pallet lumber to home builders for installations such as feature walls.

Fiber used to manufacture new products

Where nearby manufacturing plants exist, fiber can be utilized in wood composite products such as particleboard and fiberboard sheets for construction, and as filler in absorbent socks for spill containment. Wood fiber is also used in material handling products such as wood composite pallet blocks, molded wood plugs and pallets.

Fiber for mulch, bedding, and soil amendments

Popular applications for recycled fiber including colored landscaping mulch as well as animal bedding and soil amendments. A soil amendment is when wood fiber is added to soil to improve its water retention, permeability, water infiltration, drainage, and aeration. The goal of a soil amendment is to create a better environment for roots to take hold within the soil.

Fiber for biomass

Wood fiber is used as boiler fuel as well as in other applications to generate energy. Aside from bulk fiber, wood fiber can also be compressed or densified into more compact products such as pellets, cubes, briquettes or fire-logs. Densified products have a higher value and are more economical to ship a greater distance.

Fiber for emerging applications

Ongoing research continues to uncover new applications for wood fiber, while other markets are anticipated to grow. Fiber applications expected to play a larger role in the future include biochar, a soil amendment utilizing charcoal, and cross-laminated timber (CLT). CLT involves the usage of smaller pieces of wood to manufacture larger panels.

The discussion above illustrates how pallet recycling follows the cascading use principle, utilizing material for its next most valuable use, whether as pallet boards, feature walls, or several fiber products. Such an approach optimizes the economic value of wood while enhancing its sustainability story.

 

Stack of Pallets

Pallet Tracking: Then and Now

Pallet tracking has evolved tremendously over the last 40 years, and it continues to transform with the adoption of new technologies. Before we begin the discussion, let’s review this deceptively ambiguous term and provide some clarification.

What is Wood Pallet Tracking?

Many pallet users talk about pallet tracking in the sense of unit load tracking. They are most concerned with the materials stacked on the pallet and ensuring that those goods reach the consignee as prescribed. In this sense, pallet tracking is a component of inventory management and product quality assurance.

Within the pallet industry, or for pallet users responsible for managing pallets as corporate assets, pallet tracking pertains to the management of the pallet itself. Pallet tracking enables pallet users to track pallet movements to other stakeholders and thereby mitigate the loss of the pallet as an asset.

Pallet tracking can help facilitate pallet return in a returnable pallet system. It can also be used to report customer shipments to a third-party pallet provider, such as a pallet rental company.

At risk of further confusion, some pallet insiders use pallet tracking as a synonym for pallet management. In contrast, others use it in a narrower context, as the shipment and return information that is manually or digitally captured into the pallet management software. For the purposes of this article, we’ll speak about pallet tracking and pallet management interchangeably.

Why is Pallet Tracking Important?

Pallet tracking can help keep reusable pallets on the job versus accumulating excessively at trading partners, becoming lost or otherwise underutilized. When managed effectively, pallets provide a lower cost per trip through repeated reuse, while reducing the need to manufacture new pallets enhances sustainability.

Poor pallet tracking can eventually lead to failed reusable pallet systems and significant financial loss. More importantly, inadequate pallet management can result in shipment disruptions if usable wood pallets are not available during production. Customer dissatisfaction downstream in the supply chain can result from subsequent delayed deliveries or deliveries on inferior quality pallets, so do not underestimate the importance of pallet management.

Wood Pallet Tracking-Then

Pallet tracking is not what it used to be. Back in the early 1980s, before PCs became commonly deployed, keeping track of pallets was a manual and uncelebrated task, often one assigned to a junior employee.

It was a time of ledgers and 3-ring binders used to record the pallet “ins” and “outs” with various trading partners. The pallet documentation used by multiple shippers could be diverse, accumulating each day into an unwieldy stack of papers to be processed. Accurate data entry could require considerable training and experience for the clerk to interpret, depending upon the complexity of the supply chain.

From those records, the pallet manager could initiate the return of pallets owed to various manufacturers, for example, or approve payments for pallets that had arrived under load and that had been invoiced. But it could get complicated. Did the invoiced pallets meet the required specification? Had the carrier taken back exchange pallets? If either of those outcomes took place, the pallet manager might reject the invoice, leading to a dispute.

Especially in the grocery industry, it was a time of generally haphazard pallet management and ongoing issues regarding pallets owed to trading partners and pallet quality. Ultimately, several leading grocery retailers in North America abandoned the pallet exchange model because of such frustrations.

Wood Pallet Tracking-Now

The paper trail and manual entry of 40 years ago gradually evolved to ledgers and databases residing on PCs and ultimately to the cloud. Manual entry evolved to various forms of automated data capture, such as estimating the number of pallets shipped based on the amount required to send a particular number of cases.

Over time we have seen a transition from batch tracking of wood pallets moving through the supply chain (such as a shipment of 30 standard 48×40 wood pallets under load), to now being able to track each wood pallet with a unique identifier.

Unique identification can help provide more precise details regarding pallet repair history or loss. For instance, if pallets are not returned the pallet manager can review their history to see where they were last shipped and identify potential leakage points. Unique ID has been made possible through innovations such as barcode and RFID. More recently, other IoT technologies have continued to improve the accuracy of tracking and provide real-time visibility of pallet locations.

Today’s leading pallet tracking solutions are easy to use. They offer operational, financial, and in some cases, environmental reporting capabilities and dashboards easily customized to meet customer needs. Some systems feature reconciliation features to help quickly identify and resolve discrepancies between trading partners. Some solutions interface with transportation providers to initiate pallet movement requests. Many tracking systems are cloud-based and sync with mobile devices carried by delivery drivers, asset managers, and other personnel working in the supply chain.

As the desire for real-time visibility and data management increases, we are seeing a shift in interest from barcode and RFID (Radio Frequency IDentification) data capture to other solutions such as GPS (Global Positioning Systems), cellular, LPWAN (Low Power-Wide Area Network), BLE (Bluetooth Low Energy). From a pure pallet management perspective, the solution’s cost can still be a barrier to acceptance, depending upon the use case.

For this reason, we see pallet managers taking various approaches to mitigate cost, such as using lower-cost LPWAN or, alternately, tagging only some pallets versus all of them to provide visibility of pallet flows. Even some tagged pallets can help the pallet manager understand where lost pallets are going.

Another option for reducing cost is through employing a hub and spoke strategy, where proximate pallets might communicate through BLE, for example, to a hub pallet that communicates by cellular or GPS to the cloud-based tracking system.

Increased visibility eliminates guesswork and allows supply chain operators to make more informed decisions. The overall value of unit load visibility is a topic for another blog, but in many cases, it will transcend the pallet management use case.

For an increasing amount of reusable pallet programs, that value is anticipated to tip the scales in favor of IoT adoption. Pallet tracking continues to evolve, and it plays an increasingly integrated role in supporting supply chain operations

Recycled wooden block and stringer pallet stacks

Block and Stringer Pallets: What makes them different?

Do you have an unusual material handling application? No problem. Wood pallets can be designed in an infinite variety of ways to meet the unique needs of any supply chain.

Aside from the fact that wood is a highly sustainable choice for pallets, one of its many wonders is also being an extremely versatile material. It is easy to mill, cut to the desired dimensions, and then assemble into a pallet.

Through experience, training, and specialized software such as PDS (Pallet Design System™), pallet professionals can design a pallet to optimize material handling in your supply chain.

While the design opportunities are limitless, however, they are based on the two pallet classes. As described in the Uniform Standard for Pallets, those classes are the block pallet and the stringer pallet. The critical difference between them is the choice of vertical members.

The stringer pallet is the most common pallet class in North America, accounting for around 76% of production. And according to the Peerless Research Group 2018 pallet survey, 54% of respondents mainly used stringer pallets while 18 percent primarily used block pallets. The remainder of respondents (28%) used block and stringer pallets equally. Stringer pallet usage thrives in many supply chains.

Wood Stringer Pallet

Stringer pallets utilize stringers, often nominal 2x4s or 3x4s. The stringers act as support beams. They separate the top and bottom deck boards and run perpendicular to them. Stringers may be solid or be notched to allow entry by forklift tines.

Such pallets are referred to as two-way entry and partial four-way entry, respectively. Two-way pallets may be entered only from the two pallet ends by forklifts or pallet jacks (Class lll electric hand trucks or hand/rider trucks.) Partial four-way entry refers to the fact that while a forklift can enter such a pallet from all four sides, a pallet jack is limited to the two end openings.

Wood Block Pallet

Block pallets, on the other hand, are referred to as having full four-way entry. By utilizing blocks rather than stringers, pallet jacks and forklifts alike can enter on all four sides. Full four-way entry is highly prized in industries that rely on pallet jacks or that work in congested material handling environments.

Four-way functionality allows material handlers to position pallets more easily in tight spaces, enabling them to save time and space. Pinwheeling pallets to get more pallets onto a trailer or accessing pallets on congested loading docks are examples of where block pallets can add considerable value. A 2016 study reported that one Canadian grocery distribution center could benefit from $56,000 per year in warehouse efficiency gains by switching to block pallets.

There is a common misconception that the block pallet is a recent design innovation in North America. They were developed by the U.S. military (both Milton Boone and Norman Cahners independently filed patents in 1943) to deal with congested conditions found in the holds of World War ll warships and at war plants.

In the years after the war, the less complicated and more easily manufactured stringer pallet would prove to find far greater acceptance, although some industries did come to rely on block pallets. In recent decades, block pallet usage increased noticeably after being adopted by leading pallet rental companies in FMCG (Fast Moving Consumer Goods) supply chains.

Block pallets rely on blocks as vertical members. Blocks are rectangular, square, or cylindrical deck spacers that provide separation between the top and bottom deck. Stringer boards extend the full length of the pallet, perpendicular to the deck boards, and are placed between top deck boards and blocks.

Heavy-duty block pallets tend to be more durable, mainly due to the substantial amount of material used in construction. They are also typically readily repairable due to the width of the pallet block.

In terms of recyclability, stringer and block pallets are easily repairable and able to function in the supply chain over long periods before the need to recycle the pallet entirely for its components

To summarize, wood pallets are sustainable and can be customized to create optimal unit load handling solutions for the supply chain. All pallets, however, are based on stringer or block pallet classes.

While stringer pallets are preferred by many North American pallet users, block pallets’ four-way entry functionality makes them an attractive choice in some handling environments.

Checklist

Avoid These 6 Mistakes When Buying Wood Pallets

When it comes to buying wood pallets, there are several factors to consider. Modern Materials Handling Magazine’s 2018 annual survey found that purchase price was the most important factor in the selection process for 57% of respondents, although this was down from 59% and 60% in the two preceding years. Other criteria registering high scores included strength, durability, reusability, availability, meeting customer requirements, and cost-per-use. Here are some missteps to avoid.

Relying on outdated wood pallet specifications

Supply chains evolve over time. Companies acquire other companies that have different equipment and processes. Even at existing plants, investments in material handling equipment, evolving product offerings, and a changing customer base may all present new challenges in transporting the unit load on a legacy pallet.

A periodic review of the pallet specification with your pallet supplier can achieve continued unit load optimization, even as the supply chain transforms.

Approved pallet supplier cannot perform a site visit

As a busy pallet buyer, it can seem inconvenient to allow approved bidders on site to review pallet conditions and processes, especially considering COVID-19 precautions. It is an essential part of the process that will pay dividends.

A site visit allows the bidder to accurately capture important information about the pallet application, and in a timely manner. This approach can help expedite the bidding process. A site visit can also help pallet suppliers identify cost savings opportunities or other insights that can provide value to pallet users.

Inflexible on hardwood vs softwood pallet types

In the United States, the West and the South are more commonly associated with softwood, while the East is typically oriented to hardwood production. Pallet specifications can propose either hardwood or softwood in their build.

However, if a new plant begins operations in a different part of the country, or if comparative prices of hardwood and softwood change due to market conditions, it makes sense to revisit the pallet specification with regards to available lumber supply.

When market volatility increases the spread between hardwood and softwood prices, it can make sense to explore pallet redesign options with a pallet supplier.

ISPM-15 Heat treatment and mold on wood pallets

There is a common conception that the heat-treatment required for ISPM 15 compliance will help to prevent the occurrence of mold on pallets.

While heat treatment will initially kill surface mold on pallets, mold can easily re-colonize wood pallets that have a moisture content of more than 19%. A better approach to mold prevention is assuring that pallets arrive in a dry condition from the pallet supplier and that they are kept dry when received and put into storage prior to use.

Overlooking transportation opportunities

Products such as pallets have a relatively low value in comparison to their weight and volume. Such products are referred to as having a low value density.

Given the low value density of pallets, transportation can quickly become a significant portion of pallet cost. At the same time, the number of trucks running empty is significant, estimated at 20% or higher. By working with pallet suppliers to examine carrier and route information, possible synergies can be identified to help reduce costs and transportation miles.

Underestimating the value of customer service

When buying pallets, there is more to consider than price. Do not underweight the importance of customer service. Your company will have expectations about reliable quality and availability, delivery schedule, type of delivery vehicle, whether pallets are banded, and more.

Shortcomings in customer service can result in costly downtime, double handling, and customer dissatisfaction. The result can be increased production and distribution costs, and potentially lost revenue. The direct savings in pallet purchases can become overwhelmed by increases in indirect cost.

The list of false steps mentioned above provides a useful starting point in addressing the blind spots that pallet buyers can encounter. The common thread in these cautions is the importance of keeping an open line of communication with your pallet supplier. Communication and trust are critical to optimizing the purchase of new pallets for your supply chain.

CP-1 Pallet

Introducing the Chemical Pallet Pool

There are several pallet pools that provide quality assured pallets for their respective supply chains. Pallet pools offer standardization and the opportunity for pallet reuse and environmentally friendly pallet solutions.

The CP or chemical pallet pool is one pallet pool you might not have heard about. It is well established in the chemical sector, particularly in Europe, but not well known outside of it. Increasingly, however, it is becoming global in scope, and more pallet customers are asking about CP pallets.

Several million CP pallets are produced annually, and they are readily identifiable by the CP pallet stencil on them.  There are nine different CP pallet specifications, ranging from CP1 to CP9.

CP pallet markings include the CP pallet number as well as the manufacturer code, pallet reconditioner, if applicable, and the month/year of production. The ISPM 15 stamp is also required for international shipment. The latest specifications for CP pallets can be viewed here.

The CP pallet pool organizers created strict quality guidelines for pallets in the extremely sensitive chemical supply chain. While the pool is European in origin, the increasingly worldwide nature of the chemical supply chain is making the CP pallet more relevant than ever for North American shippers fielding requests for shipments to be made on CP pallets.

For pallet buyers looking to source CP pallets, it is important to communicate clearly with customers and understand their requirements. They may or may not have issues with “knock-off” or used CP pallet quality that should be vetted with them prior to shipping to avoid costly rejections or delays.

Such concerns are explored later in this article. Beyond chemical industry applications, however, CP pallets are often in demand for other applications where their block design makes them popular.

The CP pallet pool was established in 1991 by the VCI (Verband der Chemischer Industry) in Germany. Pool oversight subsequently passed to the APME (Association of Plastics Manufacturers in Europe), now Plastics Europe. Over the last few years, the European Pallet Association (EPAL) has also expanded its pallet range to include quality-assured EPAL CP pallets.

In the past, EPAL noted in a 2017 announcement, “price competition and the lack of independent quality assurance have often meant that chemical pallets have not met the requirements for the safe transport of chemical products.”

In many pools, there is a trade-off between standard pallets and unit load optimization. The CP pallet pool addresses this issue by incorporating several sizes. The most popular CP pallet sizes in North America are CP1, CP3, CP7 and CP9.

Typical applications for various CP pallets are as follows:

●       CP1 pallet (1200 x 1000 mm)  – boxes and sacks

●       CP2 pallet (1200 x 800 mm) – carton boxes and sacks

●       CP3 pallet (1140 x 1140 mm) – drums and bulk bags

●       CP4 pallet (1100 x 1300 mm) – sacks

●       CP5 pallet (760 x 1140 mm) – small packages such as boxes and bins

●       CP6 pallet (1200 x 1000 mm) – sacks

●       CP7 pallet (1300 x 1100 mm) – sacks

●       CP8 pallet (1140 x 1140 mm) – container transportation

●       CP9 pallet (1140 x 1140 mm) – containers, drums and bulk bags

The importance of pallet quality

The chemical industry is particularly sensitive to industrial hazards, a fact that underscores the importance of pallet quality. “Storing and transporting packaged and bulk chemicals is both a high risk and complex process,” one industry expert wrote recently. “Complex because the sector is highly regulated and there are many raw materials and manufactured products that need to be handled in specific and unique ways. Products are high risk because they can be corrosive, volatile, hazardous and expensive to store and move.”

Given the risk of handling chemicals and their value, it is no surprise that the chemical supply chain often leans towards new pallets.  “When you have an extremely valuable and sensitive product, why would you take the risk on a used pallet,” one former CP pallet buyer from Germany told Nature’s Packaging.

A quick online search indicates that both used as well as new CP pallets can be sourced in the North American marketplace. When customers specify a particular pallet, such as a CP pallet, it may be important to drill a little deeper to determine the sensitivity of customers regarding pallet certification and state of repair.

It is good practice to understand whether the customer requires a certified CP pallet as opposed to a non-certified pallet that broadly follows the specification. In a similar vein, used, certified pallets are often required to be in top condition due to the inherent risks of the supply chain.

It pays to take the time to fully understand customer pallet requirements. Watch for CP pallets to play an increasingly important role in the global chemical supply chain.

Identifying and Mitigating Mold on Wood Pallets

As we pass through the hot summer months in North America, an increasing number of Nature’s Packaging readers are entering search queries regarding pallet mold. Whether you are a pallet supplier, a pallet user, or even as a hobbyist, there are practical steps that can be taken to prevent or mitigate mold. This blog post provides a quick starting point to better understand the problem of mold on wood pallets and the options for managing it.

What is pallet mold and what are the concerns?

Mold (or mould in other English-speaking countries) is a fungus that grows in the form of multicellular filaments.


Mold filaments

Mold spores are found everywhere in the environment, and they are more likely to colonize wood surfaces that have a moisture content greater than 19%.

On wood pallets, mold may produce pigmented spores on the wood surface. They may appear in various colors, while some might not be visible to the naked eye.

There has been an increasing demand for mold-free wood packaging from the food and pharmaceutical sectors in recent years. The primary concern with mold relates to spore transmission. Airborne spores may land on nearby surfaces, potentially contaminating or growing on nearby materials.

Spores may also colonize other adjacent wood packaging or pallets, thereby increasing the extent of the problem. Secondary health concerns include asthma and toxin production. Like other airborne particles, spores can induce asthma. The more spores that are present, the higher is the risk. As one researcher notes, some mold fungi are also capable of producing toxins, but while high levels of toxins can have health effects, the levels produced by fungi on wood tend to be low.

Not all wood discoloration is a concern

Before flagging or rejecting a pallet for mold, consider that the discoloration you see might be something else. By taking the time to understand the different types of stain that can occur in wood, you can avoid wasting time, money, and potential disruption to your supply chain.

For example, bluestain creates black discoloration but does not cause human health concerns. Additional sources of non-harmful discoloration that might be present on pallets include iron stain, brown stain (or zebra stain), natural weathering, and others. NWPCA has a helpful brochure that can be downloaded at this link.

Mold remediation

Although labor-intensive, a simple solution of water with bleach (10 to 1 ratio) or 3% concentration of hydrogen peroxide can remove mold. Scrub or pressure wash clean the affected cants or wood packaging. Proper drying is needed to ensure that the mold does not return.

Mold prevention tips

Mold prevention starts with understanding the recipe that mold requires to flourish. There are four essential ingredients needed. This list includes:

  • oxygen,
  • adequate temperature,
  • a food source (the wood),
  • free or liquid water.

The variable most easily controlled is water. By limiting the exposure of wood pallets to moisture, you can mostly avoid mold problems.

Keep stock fresh and remove moldy material.

At the sawmill or pallet manufacturing plant, one expert advises against storing wet lumber in solid piles for no longer than three days, especially in warm conditions.

Create good airflow to accelerate surface drying, and avoid accumulations of older, moldy material. Such lumber can increase the risk of fungi spreading to freshly milled material.

Unload pallets quickly and protect them from the elements.

Pallet users can benefit by thinking of a trailer full of pallets as an incubator. While logistics professionals often rely on trailers for temporary storage, leaving pallets on trailers during warm weather, even for a brief period, can quickly turn into an unintended science experiment.

Also, avoid staging pallets outside in moist conditions. If pallets do become wet, dry them immediately.

Store pallets in a dry, well-lit, and ventilated location.

Do not store pallets in a far dark corner of your building. Look for a dry area that is well lit and ventilated. For stringer pallets, leave a space on the stringer side of the stacks to ensure good airflow.

For the same reason, orient the end openings in the direction of air movement. Also, elevating pallet stacks at least 6 or 8 inches above the floor helps prevent pallets from coming into contact with water puddles.

Chemical treatment for mold prevention might be an option.

Several registered chemicals can be applied to prevent mold, subject to those treatments being permitted for your application. A dialogue between pallet suppliers, customers and other supply chain stakeholders can pinpoint the best option for a particular use case.

Do not rely on ISPM 15 heat treatment as a preventive measure.

One common misunderstanding is that heat treatment can be an effective course of action to prevent mold. This belief is not valid. The heat treatment of wood packaging is undertaken to kill wood born insects.

While heat treatment can kill surface mold already present during the process, it does not prevent the recolonization of mold after treatment. It is true that when kiln-dried lumber is used for pallets, the low moisture content of the wood does help prevent the colonization of mold, but only if the pallets continue to be kept dry.

The bottom line is that keeping your wood pallets and packaging at 19% moisture content or lower can help prevent mold. Rotating stock, attention to unloading pallets from trailers quickly, ensuring adequate airflow in a well-lit storage location, and removing any moldy material can all help. Consider chemical treatments, if permitted in your supply chain, to increase your level of protection. Attention to keeping pallets dry in your material handling operations can make a critical difference.

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