Blog – Page 9 – Nature's Packaging

Carbon Cycles and Sinks: How Forests Fight Global Climate Change

January 11, 2021/in Blog/by Glenn Meeks

A graphic representation of the environmental cycle with hands holding a seedling in soil.

In December 2020, the Canadian government announced its plan to plant two billion trees in the next decade, at a cost of $3.16 billion. That strategy is anticipated to reduce greenhouse gas emissions by up to 12 megatons by 2050, while creating as many as 4,300 jobs in the process.

As that recent announcement reflects, forests have been increasingly recognized by policymakers around the world as a crucial component in the “carbon cycle” and the fight against climate change. Effectively managed forests can play a leading role in absorbing and storing carbon, and as such, help reduce atmospheric carbon levels associated with global warming.

What is the Carbon Cycle?

The “carbon cycle” refers to the series of processes by which carbon transitions from land and water through the atmosphere and living organisms. The National Oceanic and Atmospheric Administration refers to the carbon cycle as “nature’s way of reusing carbon atoms, which travel from the atmosphere into organisms in the Earth and then back into the atmosphere over and over again.”

Most of the carbon is stored in rocks and sediments, while the remainder resides in the ocean, atmosphere, and living organisms. While carbon travels throughout the cycle, the total amount of carbon has not changed over time.

Due to human activities such as burning fossil fuels, however, carbon balances within the cycle have shifted, with more of that carbon having been introduced into the atmosphere.

In forests, trees absorb carbon dioxide through photosynthesis. During this process, oxygen is emitted and carbon is stored in woody stems, branches, roots and leaves. The process of absorbing and depositing carbon is known as sequestration.

A forest is referred to a “carbon sink” if it absorbs more carbon from the atmosphere than it releases back into it. This outcome is positive, from a climate change perspective, with carbon stored in woody biomass, wood products, dead organic matter and soil.

On the other hand, a forest becomes a “carbon source” if it releases more carbon than it absorbs. Catastrophic disturbances such as forest fires, windstorms, and major insect infestations can increase the release of carbon and make a forest a net source of carbon in the short run.

Forest Carbon Reserves are Growing

In the past 40 years, forests have moderated climate change by absorbing approximately one-quarter of the carbon emitted by human activities such as the burning of fossil fuels and the changing of land uses. That carbon uptake reduces the rate at which carbon accumulates in the atmosphere and thus slows the pace of climate change.

In the United States, where forests cover approximately one-third of the country, forest carbon stocks have expanded by 10% since 1990. “ Overall forest carbon stocks have increased annually…, meaning U.S. forests have been a net carbon sink, absorbing more carbon out of the atmosphere than they release,” according to a 2020 report by Congressional Research Service.

As of 2019, U.S. forests stored 58.7 billion metric tons (BMT) of carbon in 2019. Most of this amount (95%) was held in forest ecosystem pools, with the remainder sequestered in harvested wood products.

Forest ecosystem carbon pools include above-ground biomass, below ground biomass, deadwood, litter, soil and harvested wood products. Forest soils are the largest pool of forest carbon, accounting for roughly 54% of storage. The second largest pool is above ground biomass, which holds around 26% of forest carbon.

The graph below shows the ongoing growth of overall carbon storage as well as the relative importance of the various forest ecosystem pools, measured in billion metric tons of carbon.

How Forest Management Helps Improve Carbon Stocks

Effective forest management helps to ensure that more carbon is sequestered and that less is released through events such as forest fires or processes such as slash burning. In the short term, management efforts are aimed at reducing carbon emissions through measures to protect against fire and insect infestations, as well as through avoiding the burning of logging slash.

In the longer term, strategies such as afforestation (planting new forests), and preventing deforestation will play critical roles. Management practices such as lengthening harvesting rotations, species selection and ensuring prompt replanting after harvest or disturbance will also play a part in promoting forest health and further building forest carbon stocks as a critical pillar in our defense against climate change.

Forklift Safety in the Warehouse and Working Yard

January 4, 2021/in Blog/by Glenn Meeks

Forklifts and pallet jacks play a critical role in the handling of goods in supply chains. They are essential in moving palletized loads, crates, bundles of lumber, and other products.

Powered industrial trucks (PITs), such as forklifts and pallet jacks can raise, lower, and transport materials, expediting the flow of materials through various stages of manufacturing and distribution such as loading and unloading, transporting work-in-process, and storage operations.

PIT training is an OSHA requirement and the importance of training for people who work around forklifts, while also emphasizing the importance of facility design in promoting safety for others, is a priority. Consider not only your facility employees, but also visitors, customers, office staff, or salespeople that venture into the plant or yard. Pedestrians in the vicinity of forklifts can be at risk.

While OSHA does not address forklift-pedestrian training specifically, the OSHA General Duty Clause spells out that employers take measures to protect employees from recognized risks. For example, they point out the importance of clearly delineated travel lanes for forklifts with speed limits.

The following are some ideas for helping to ensure pedestrian safety in warehouse and working yard facilities:

Plan traffic patterns. The creation of routes that keep pedestrian injury. Physical barriers, signage, and painted markings can help identify pedestrian-only paths. Be sure to create and uphold safety rules around traffic right-of-way and pedestrian-only paths.

Training for pedestrians. While infrequent visitors to your plant do not require an exhaustive session, pedestrian training should cover the basic hazards related to forklifts and the rules that need to be followed, such as sticking to designated pedestrian paths, engaging operators through eye contact or verbally when in proximity, and taking extra care at intersections.

Pedestrians should be mindful of keeping clear of material that might fall as well as ensuring that they are outside of the turning radius of the PIT and its load. In wood products industries, for example, they should be mindful of the wide turning radius of long lifts of lumber.

Utilize safety equipment. Personal protective equipment such as a high visibility vest, safety shoes, and in some workplaces, hardhats are required. Additionally, forklifts are required to have horns and may be fitted with warning lights and forklift travel alarms such as a backup warning indicator.

Onboard cameras and sensors are also increasingly available to help alert operators that a pedestrian is present. Curved mirrors can also be used to improve pedestrian safety at intersections and corners.

While forklift training in the past has largely centered on operators, we should also be mindful of risks to pedestrians. Effective communication among managers, supervisors, PIT operators, as well as pedestrians are essential to creating an effective network of safety in a busy warehouse and/or yard environment.

Small Pallets Can Carry Huge Benefits

December 21, 2020/in Blog/by Glenn Meeks

When it comes to the efficient handling of pallets, it makes sense that bigger should be better. Why move 100 cartons at a time when you can do 125? A larger pallet translates into more productive forklift handling. In the case of pallet selection, however, other factors can skew decision-makers toward smaller footprint pallets.

What is a Pallet Footprint?

To take a step back, the footprint of a pallet refers to its length and width. The pallet’s length is determined by the length of the stringer, or in the case of a block pallet, the length of the stringer board. The width of a pallet refers to the deck board length.

For a 48×40” stringer pallet, for example, the stringers are 48,” and the deck boards are 40”. In a 48×40” block pallet, the stringer boards, which lie between the deck boards and the blocks, are 48” and the deck boards are 40”.

What is a Fractional Pallet?

Small pallets can be fractional pallets such as half pallets and quarter pallets. They are fractional in the sense that they combine to become the equivalent of a full-size pallet. In North America, where the most popular pallet size is 48×40”, a half pallet is typically half of that measure.

To envision a half pallet, think of a full pallet that has been cut in half – either to 48×20” or 24×40”. Likewise, a quarter pallet is often 24×20” or 20×24”. Because fractional pallets can be combined to fill a standard pallet footprint, they readily integrate into supply chain transport and handling systems designed for standard full-size pallets.

What are the Benefits of Small Pallets?

Less touch labor at the warehouse and at retail. Half and quarter pallets permit the benefits of unit load shipping in smaller order quantities. Unit load shipment from a distribution center to the retailer translates into less touch labor for order pickers, resulting in improved productivity. Likewise, where the small pallet is displayed on the floor or positioned in-aisle, retail stocking activities can be largely eliminated.

Less product damages. According to one study, 80% of product damage in the FMCG supply chain takes place between the distribution center and retail. Because half or quarter pallet displays remain intact until they arrive at retail, the product damage associated with case picking, stacking and shelf stocking activities is avoided.

Sales boost on the retail floor. Evidence suggests that shoppers are drawn to floor displays, and as a result, they help boost sales. Small pallets can further enhance sales enabling more SKUs to be available to shoppers. Because small pallets take up less space, it is possible to increase the number of displays at a given time. Smaller pallets are also more shopper-friendly, eliminating the need to stretch across a full-size pallet to grab an item.

Easier navigation for shoppers and material handlers. Small pallets are better suited for delivering product through narrow doorways or in and out of backroom coolers with small openings. For deliveries to convenience stores, for example, the use of small pallets has been found to help reduce driver time at each stop. Small pallets also provide retailers with the opportunity to create displays that take up less space and therefore are more pedestrian-friendly.

Where they better fit product requirements. Small pallets also provide value where they conform to a particular product being shipped, thereby avoiding pallet underhang and wasted space (the product not utilizing the complete deck of the pallet).

More facings at the warehouse or assembly line. Because small pallets are not as wide as full pallets, more pallet facings can be created in the same distance, thus reducing travel time for assemblers.

What are the Disadvantages of Small Pallets?

Smaller payload. As mentioned above, half pallets hold only half as much product as full-size pallets. As a result, twice as many pallets are required, and twice as many unit loads must be handled to deal with the same amount of product.

Small pallets can add complexity. Small footprint unit loads can also pose challenges for material handlers. Some configurations may be more unstable than full pallets, requiring attention to mobile equipment operator training. Once emptied, small pallets must be sorted for return or otherwise recycled. Small pallets, especially non-fractional sizes, may be less desirable to pallet recyclers.

Benefits of small pallets aren’t applicable. While small pallets are becoming increasingly popular for retail display, they may not be applicable for many other supply chains.

The bottom line is that in some applications, such as retail, small pallet displays are helping retailers to boost sales and reduce stocking labor. No matter what size of pallet best meets your needs now or in the future, however, the good news is that pallet manufacturers can readily fabricate wood to produce the optimal size for your supply chain.

Environmental Product Declarations (EPD’s) and Life Cycle Assessment (LCA) for Wood Pallets

December 7, 2020/in Blog/by Glenn Meeks

EPDs can provide insight to buyers, as well as support pallet customer LCA and green marketing efforts. Think about EPDs as you would the nutrition label that you look at on food packaging, except instead of reporting saturated fat and calories, it is environmental impacts that matter.

“EPDs are a disclosure tool that helps purchasers better understand a product’s sustainable qualities and environmental repercussions, so they can make more informed product selections,” explains UL, a global leader in PCR creation and EPD certification.

Beyond procurement, the information included in an EPD can also help a pallet user understand the broader environmental impact of manufacturing or distribution activities in aggregate when particular EPDs for various inputs are examined collectively.

EPDs can also be useful for marketing purposes. “In marketing, many organizations want to make claims of their product´s environmental performance, especially if it is superior compared to other similar products on the market,” observes Stockholm, Sweden-based EPD International. “However, such claims must be conveyed in a manner which is recognized by the market as being relevant, credible, and transparent.” That’s where an EPD can help.

EPD’s: Standardized, Independently Verified, and Registered

Each Environmental Product Declaration (EPD) is an independently verified and registered document that communicates transparent and comparable information about the life-cycle environmental impact of a product. EPDs provide a declaration of environmental performance based on a standardized, common methodology used for performance evaluation.

They rely on third-party-verified documentation of environmental performance and follow a scientifically accepted and objective methodology detailed by a product category rule (PCR).

An individual EPD is based on a specific PCR. Each PCR contains a set of requirements and guidelines used for conducting and reporting environmental life cycle assessments of a particular category of products. The PCR evaluates environmental performance including aspects like carbon emissions, resource depletion, and energy use, to name a few.

PCRs ensure that products of the same function are evaluated consistently for a meaningful comparison of results. PCRs and EPDs are available for various product categories, including construction and architectural wood products.

An EPD for Wood Pallets: A First for Shipping Materials

The PCR for wood pallets certified by UL in 2019 set the stage for the creation of a wood pallet EPD in 2020, also certified by UL. The PCR and EPD initiative was sponsored by the National Wooden Pallet & Container Association (NWPCA) and Pallet Foundation in conjunction with the USDA Forest Service Forest Products Lab. UL’s PCR for wood pallets is the first of its kind for shipping materials.

“UL applauds the efforts of NWPCA and the Pallet Foundation to develop a PCR and now issue an EPD for wooden pallets to better understand the environmental impact they have,” said Alberto Uggetti, vice president and general manager of UL’s environment and sustainability division. “The reusable nature of wooden pallets makes them a more circular, sustainable form of reusable packaging, and with this EPD, manufacturers will be able to communicate the impacts of their products with more transparency and confidence.”

The EPD solidifies wooden pallets as the clear sustainable choice for supply chains across industries. “This industry-wide wood pallet Environmental Product Declaration (EPD) is not only a first in the supply chain, it is a major step toward scientifically validating the benefits of wood pallets,” said Brent McClendon, President and CEO of NWPCA. “Beyond anecdotal evidence, this research supports the sustainability of wood. The results are something that all wood pallet companies can trumpet to their customer base as a new tool in their toolbelt.”

The creation of an EPD for wood pallets marks a crucial step in communicating the sustainability advantages of wood and providing clarity for pallet buyers.

Four Essential Tips to Manage Pallets During this Holiday Season

November 30, 2020/in Blog/by Glenn Meeks

Santa and his helpers always practice safe pallet handling

It is definitely not the season to be jolly if your supply chain grinds to a halt for lack of pallets. If the order picking crews are scrambling to find pallets to build orders, then shipments can quickly get delayed and complicate the delivery schedule. Here are four essential tips for making sure that customers are happy and workers stay safe throughout the holiday season.

Plan ahead for the need

Based on previous experience and projections, make sure to have the pallets on hand needed to fulfill orders. This year (2020) presents a unique challenge in projecting demand, so it makes sense to be nimble in terms of finetuning pallet requirements. Clear communication and an ongoing dialogue with your pallet suppliers are critical.

A best practice tip is to have the supplier hold an inventory of ready-to-ship pallets, so they will available when you need them. Do not be left in a position where you run out of pallets and must start cold calling pallet vendors for an emergency delivery.

Train the seasonal workers

Peak season volumes and seasonal employee support go hand and hand. By taking the time to train new team members in safe manual pallet handling and the efficient forklift handling of pallets, you can reduce the risk of injury and damage to products and pallets alike.

Remember other seasonal team members who make pallet-related decisions, such as new delivery drivers and temps hired to sort pallets. Do they have the necessary knowledge to ensure that damaged pallets are consistently removed from use and that drivers fulfill their responsibility regarding empty pallet return or other duties related to pallet management?

Don’t neglect to bring pallets back

When logistics systems reach peak and delivery driver capacity is stretched to the limit, one shortcut that companies take is to delay bringing back distribution residuals such as cardboard, reusable trays, and, of course, empty pallets. With trucks focused on keeping up with outbound shipments, retail locations are faced with stockpiling pallet accumulations either in the back room or in the parking lot.

Unwanted buildups of pallets can impede store operations and result in those pallets not being returned to the warehouse, where they might be urgently needed. Also, consider that the unprotected outdoor storage of pallets and reusable packaging at retail dramatically increases the risk of pallet theft.

Consider outsourcing to your pallet provider

It can be a scenario of all hands on deck for retail distribution during the holiday season. With labor urgently needed for filling and delivering orders, roles such as pallet sorting are often viewed as secondary. Unsorted stacks of pallets can back up in warehouse corners or fill up trailers desperately needed for outbound shipments.

The other alternative, the introduction of unsorted pallets into your system, can result in other inefficiencies. And as mentioned above, driver and road equipment limitations can impede your reverse logistics process.

Retailers can avoid this seasonal strain by working with their pallet company partners to provide pickup of pallets and other distribution residuals. The result is pallet and residual processing capacity that does not strain your labor availability and provides ‘ready to go’ pallets as needed for the distribution center.

When it comes to the holiday season and pallets, it can be a time of extremes – too few for order picking or too many to return and sort. Attention to planning, training, and pallet supplier coordination can make a big difference.

How Forklift Drivers can Reduce Wood Pallet Damage

November 23, 2020/in Blog/by Glenn Meeks

Call it synergy – the combined result is exponentially more potent than the sum of the individual components involved. That’s the way it is for pallets and forklifts. The development of pallets and unit load handling dramatically has improved material handling. The mutually beneficial relationship between lift trucks and wood pallets spans over 80 years and continues to evolve.

Today, palletized handling is a fact of life in many supply chains. Logistics professionals, however, continue to strive for continuous improvement opportunities. As they explore ideas for reducing product and pallet damage, an opportune place to start is the interface between the forklift and the product – the wood pallet.

Why is reducing wood pallet damage important?

There are crucial reasons for eliminating pallet damage. Let’s start with safety. Exposed nails and splinters can cut or puncture the skin. More seriously damaged pallets can result in toppled loads or load failure – events with potentially catastrophic outcomes. Broken pallets can damage palletized goods, and the impacts that damage the pallets can also damage the products they carry.

Pallet damage can also put a damper on supply chain flow. This factor has become critically important as operators find themselves pressed to process orders faster than ever before. Pallet damage can unexpectedly disrupt that flow and cause unplanned delays.

For example, warehouse staff must re-board, or double-board unit loads palletized on damaged pallets before inducting them into the warehouse or production plant. Damaged pallets can get caught up in material handling systems such as conveyors and pallet racking, requiring intervention and causing expensive downtime.

How forklift operators can reduce wood pallet damage.

Slow down upon pallet entry

It may seem counterintuitive to slow down when speed is required, but slowing down immediately before entering the pallet will reduce impact damage to pallet lead boards and product alike, eliminating the need to deal with these issues subsequently.

Place forks accurately

Incorrect fork placement can result in fork tips damaging the ends of pallet stringers or blocks. Take care to enter the pallet cleanly. Remove obstacles that make a level fork entry into the pallet difficult, such as floor debris.

Keep forks level

Ensure that forks are horizontal when lifting palletized products. If forks are angled, stress on the pallet’s top deck boards will not be uniformly distributed, increasing the likelihood of broken boards.

Avoid “shortforking”

Shortforking is an industry term for not completely entering the pallet with the forks. As in the case above, shortforking results in uneven distribution of weight. With all of it being shouldered by the pallet’s front half, the chance of pallet damage is increased.

Avoid bottom deck damage with correct pallet jack placement

Where forks are longer, such as in the case of a double pallet jack, markings on the forks can help. The operator can use the markings to quickly determine that forks are correctly positioned. This technique eliminates the risk of load wheels resting over bottom deck boards and damaging them when raising the forks.

Don’t hump pallets

One common cause of lead board damage results from operators making contact with an adjoining unit load in a row before completely lowering. The best practice is to lower the pallet immediately prior to placing it next to another unit load. When one pallet rides on top of the adjoining pallet lead board while being lowered, it can damage the lead board.

Take a look at your warehouse floor. Suppose you see many longer splinters on the floor. In that case, the chances are that forklift operators are lowering pallets after contact rather than prior.

Don’t bulldoze pallets across the warehouse floor

Pushing or bulldozing stacks of pallets or unit loads with a forklift is still commonly practiced. It is seen as a time-saving technique – moving several unit loads rather than one. This approach can cause damage to forklift and pallet deck boards alike, however. As one article notes:

Pushing an object (by forklift) subjects the drive train to higher loads than it’s designed for. Additionally, the inertia used to push can apply higher peak forces than it is supposed to handle. All of this can significantly reduce the life of the transmission.

Bulldozing pallets also presents safety risks. If an operator’s line of sight is blocked by the unit loads being pushed, they may not see other workers or equipment. Additionally, if a bulldozed load catches on a seem in the floor, it can topple and cause injury and damage.

Attention to forklift operation best practices can help your company minimize pallet damage, as well as damage to products and other equipment. Better forklift practices can reduce your pallet repair and replacement costs, and most importantly, better protect people who work in proximity to pallets. Now is the time to incorporate pallet handling best practices into your forklift training program.

Workplace Safety and Wood Pallet Handling

November 16, 2020/in Blog/by Glenn Meeks

Companies recognize the importance of wood pallets and the imperative for working safely around them. With 80% of U.S. commerce transported under pallets, their role is crucial in warehouse and supply chain operations. While each workplace will have a unique risk profile that will ultimately inform its approach to working safely with pallets, it is essential to consider worker interactions with pallets in health & safety programs. In this post, we look at safe work practices regarding the handling of wood pallets and working in their proximity.

Pallet safety in operational health and safety programs

The Ontario Province Workplace Safety & Prevention Services (WSPS) recommends that companies incorporate a pallet safety program, including pallet inspection, removing damaged pallets from use, and properly handling and storing pallets. Consider the best practices listed below when incorporating pallet safety into your organization’s health & safety approach:

Train supervisors and workers on all safe practices and procedures – Workers who handle pallets and work around them are exposed to strains and sprains, cuts and abrasions, as well as other risks. Employees can minimize risk by exercising best practices, introduced through training, and reinforced daily by effective supervision.
Use appropriate personal protective equipment (PPE) – Glove and safety shoe usage are often a requirement for personnel who handle wood pallets. Gloves protect against cuts and puncture wounds, while safety shoes guard against the impact of a dropped pallet or stepping on a protruding nail from a broken pallet.
Implement a process to identify and remove damaged pallets from service, and restock loads on undamaged pallets – WSPS stresses the importance of establishing a routine of inspecting pallets and removing damaged ones from service for return to your pallet provider. Without a formal process for removing damaged pallets, they can easily get mixed up and find their way back into service. The use of broken pallets can increase injury risk to workers.
Eliminate trip & fall hazards: pallets in pedestrian walkways and pallet debris – Avoid setting pallets in pedestrian walkways, even temporarily, where they can result in trip & fall hazards. Also, clear wood pallet debris from the floor as frequently as needed to minimize the risk of twisted ankles or falls. In the warehouse, dock locations and order picker start and staging points often generate the most debris.
Eliminate trip & fall hazards: walking on top of pallets and between them – You can lose balance and fall when walking on the top deck of wood pallets and between closely placed pallets. Engineering your process to eliminate the need to walk on pallets or between them can pay dividends. A straightforward way to eliminate the need to step onto a pallet deck to reach a box at the far end of it is through using a picking hook to extend the warehouse worker’s reach.
Utilize a team lift approach to manually handling heavier, larger pallets – While mechanized solutions such as the forklift or pallet dispenser are generally preferred for lifting or positioning pallets, manual handling is a fact of life in many warehouses. Facilities may encourage a team lift of empty pallets by two employees, particularly for heavier or large pallets. When lifting a pallet solo, keeping it in proximity to the torso helps to maintain a close center of gravity.
Never use pallets as a lift platform – Only use approved, engineered lift platforms for elevating workers, and only after having received and signed off on necessary training. Pallets are engineered to support uniformly distributed loads, not people. A pallet should never be used as a man lift.
Never Stand Empty Pallets on End – While it might seem convenient, avoid resting empty pallets standing on end. Pallets standing on end are highly unstable. If they tip, they can cause lower-body injuries.

Ultimately, wood pallets are a crucial component in the safe and efficient function of warehouses and supply chains. Take time to understand the hazards and exercise best practices. Make wood pallet safety a part of your health & safety conversation.

The Peculiar Pricing of Wood Pallets

November 9, 2020/in Blog/by Glenn Meeks

In explaining why wood pallet prices vary, let us look at gas prices as a comparison. Consumers reluctantly accept the upward and downward shifts in prices paid at the gas pump. People understand that gas prices are largely dependent upon the price of crude oil, and so changes in the cost of crude are quickly reflected in the retail price of gasoline. Wood pallets are similar in that much of their cost is also related to another commodity – timber.

Consider that as much as 65% of the cost of a new pallet is directly related to the wood and fasteners used to build it. And given that pallet industry margins are generally very low, it is hard to avoid passing along cost increases. As such, pallet prices are extremely sensitive to the cost of material inputs. Other factors can influence wood pallet prices, including supply and demand, weather, government policies, and more.

Regional Variability for new wood pallets

National pallet buyers quickly come to understand that pallet prices vary across North America. Chances are that the price you pay for a new wooden 48×40 pallet will be different in Arkansas than in East Texas. Variables such as lumber, labor, and real estate availability all play a role.

A quick scan of a recent pallet market report revealed more than an 8% spread in pricing across the country for a new 48×40 wood pallet. Given that material costs are such an important component of wood pallet prices, it stands to reason that geographic regions enjoying access to cheaper wood will be able to produce pallets at a lower cost than in other areas. Regions with proximity to local timber supply can avoid significant transportation costs.

Regional variability for recycled pallets

As for recycled wood pallets of good usable quality (sometimes known, a recent market report showed that they varied almost 25% from the lowest pricing in New England to the highest in the Pacific Northwest. Unlike new pallets, however, the cost of new lumber is not a primary determinant of price.

The regional availability of recycled wood pallets and the demand for them, shape the market. In strong produce industry markets (read: fruits and vegetables), demand for recycled pallets may be very high. The supply of recycled pallets, however, is in large part generated from the consumption of consumer goods.

In larger metropolitan markets, more recycled pallets are generated. In markets where demand is very high, but where population and pallet generation are low, the price can be expected to be higher. On the flip side, a populous region that creates a lot of recycled pallets, but without a strong local demand, can be expected to experience lower pricing.

Seasons and Weather

Predictable wet seasons and extreme events can impact timber and pallet prices. Seasonal wet weather, or events such as hurricanes, floods, or forest fires, can limit access to timberlands, imposing significant challenges to loggers.

Mill investment and optimization

Pallets are made from low-grade or industrial lumber, which is a byproduct of grade lumber production by sawmills. Mills make more money from grade lumber than industrial, so they try to recover as much grade as they can. New softwood mills, featuring technologies such as computer laser scanning, offer significantly improved grade yield. Even though overall production is increasing in the U.S. South, total industrial lumber generation is declining, thus adversely affecting pallet lumber supply, resulting in higher priced material.

Competing and complementary markets for wood

Increased competition for industrial lumber from other sectors such as rail ties or flooring can also result in higher prices. There can also be complementary effects. Stronger demand for grade lumber and increased production can lead to the generation of more industrial lumber, and thus favorable pricing. Conversely, reduced consumption can lead to less industrial lumber in the market, as was the case after Chinese hardwood tariffs contributed to hardwood production curtailments in the Eastern United States.

External shocks: Policy and Pandemic

2020 provides great examples of how government policies and exogenous shocks can impact lumber supply, and ultimately, wood pallet prices. The UK’s decision to leave the EU demonstrates the influence that policy can have on the pallet market. Departure from the EU will mean that all wood pallets moving between the two markets will be required to be ISPM 15 compliant. Many companies have cautiously chosen to build product and material inventories prior to the effective date, thus resulting in increased short-term demand and higher pallet prices in the face of tight lumber supply internationally.

In North America, as industries such as construction ground to a halt during the early months of the COVID-19 pandemic, many mills curtailed production. By summer, however, construction returned, and the new housing market boomed. Due to the mill closures, lumber availability was tight, resulting in historic high lumber prices in the months that followed, until the supply could catch up.

In the final analysis, a new wood pallet, as a timber-based product, is subject to price fluctuation. The good news is that despite price movements, wood remains the most cost-effective and sustainable material available for pallet construction.

5 Ways to Eliminate Unwanted Wood Pallets from Your Business

October 26, 2020/in Blog/by Glenn Meeks

Most companies benefit from sustainable and cost-effective pallet systems, and overall, wood pallets are highly recycled. The most recent research has determined that 95% of wood pallets in the United States are recycled.

For some businesses, however, empty pallets can stack up over time. When unwanted pallet accumulations get out of control, they can take up valuable space, require double handling, impede video surveillance, and catch the ire of corporate risk managers. While for small businesses, it might be enough to set them outside the fence with a “free pallets” sign, that is not an option for many companies.

If you waste valuable time and space handling and storing post-use wood packaging material, it does not need to be that way. Taking a circular approach can make a lot of sense – employing strategies that maintain the value of pallets through reuse, and ultimately, recycling when the pallet material is no longer of other use. Here are five ideas that can help keep your yard clear.

Wood Pallet Return and Re-use

Moving to a pallet return and reuse program can help control empty pallet buildups in some supply chains. In this type of program, the supplier retrieves the accumulated emptied pallets. In many cases, a superior quality reusable pallet will provide a better performance and a lower cost per trip even after considering the cost of reverse logistics, sorting, and repair.

Pallet reuse programs can save money and keep your parking lot free for its intended purpose. If the idea of managing a pallet retrieval program seems like an unnecessary complication, consider reaching out to a professional pallet supplier. Many companies offer custom pallet management services.

Conversion to a more common size wood pallet

Explore pallet size options. If you can convert inbound pallets to a popular size, especially the 48×40 GMA style pallet, they will be much more attractive for a pallet recycler to pick up from your location. A bonus is that recycled 48x40s are attractively priced. Other common wood pallet sizes include 40×48, 48×48, 48×45, 48×42, 48×36, 42×42 and 37×37.

At one time, before the growth of the pallet recycling sector, empty pallet accumulations were much more prevalent. Thanks to the pallet recycling expansion in recent decades, however, there is a strong demand, especially for the 48x40s. This demand helps pallet users keep their locations free from unwanted buildups.

Wood pallet rental

If you employ a 48×40 pallet, rental may be an option. In a pallet rental program, the shipper typically rents pallets on a one-way basis for shipment to customers. Emptied pallet accumulations at the customer location are then returned to the rental provider.

Pallet Flow-Through

Think about pallet flow-through as another possibility. This method was first pioneered over seventy-five years ago but used far too infrequently. Is it possible that your supplier can send goods to you on a pallet that you can then reuse in-house or for outbound shipment from your plant? Some companies purchase new pallets meeting their requirements and arrange to have them delivered to a supplier, so that once goods are emptied, the pallets can be put to work rather than needlessly stacking up.

Pallet Recycling

If none of the options above make sense, or if you have an immediate urgency to remove unwanted pallets, recycling might be your best option. Some plants that generate high volumes of custom wood pallets and packaging have wood grinding machinery onsite to reduce it to fiber. Many other companies contract with recyclers to take wood waste away. The cost of the service will depend in part on the recovery value of the material.

Recyclers recover wood to its highest possible value, including pallets, recovered pallet components, and finally, converting unusable material to fiber. Fiber is used for a range of purposes, including new board or sheet products, biomass, mulch, bedding, and more.

As a leading pallet association says, “Pallets move the world.” Remember that pallets support the circular economy by maintaining their value in various reuse and refurbishment models, or by being recycled into components and ultimately, fiber, as outlined above. That same circular approach also aids in keeping your location clear from unwanted accumulations of empty pallets. Contact a pallet professional to find out more.

Talking To The Source: Dr. Jennifer Russell of Virginia Tech and the Circular Economy – Part 2

October 19, 2020/in Blog/by Glenn Meeks

*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 is value retention and how do we all stand to benefit from it?

In the past 100 years western culture and society has become normalized to the idea that products can just be ‘thrown’ away – that things have no value once we are finished with them. Our focus on convenience, variety, and an expectation of low-prices means that products once made to last 10 years (e.g. clothing) now cycle through retail stores and personal closets within only a few months. And global waste streams are exploding with these ‘unwanted’ items.

But if we think about the entire life-cycle of a product — from the extraction of the materials, it’s fabrication and manufacture, its use, and what happens when it is no longer wanted — you get a different perspective on the inherent value of the product.

Value can be related to the materials that are used, where they come from, how the products are assembled, who assembles it, how long it will last, and the variety of ways that it can be used, beyond the function that was originally intended.

Circular Economy challenges the us to find ways to extend product lives (e.g. make products last longer by designing them to be more durable, investing in maintenance, and finding opportunities to reuse, repair, refurbish, and even remanufacture them when they are no longer useful to the original owner).

Value retention is a fundamental shift in how we assess and understand the value of things – beyond price and brand – and thus, what we decide to do with those things when they are no longer wanted or needed.

Specifically, the Value Retention Processes that were studied in the UN Report relate to:

reuse – where a product gets to serve an additional life providing functionality to someone else, instead of being directed to landfill.
repair – where a product is returned to functionality for the original owner, through relatively smaller outlays of new materials, energy, and labor.
refurbishment – where a product is brought back to full functionality, and potentially even upgraded to provide new functionality and performance for a new user.
remanufacturing – a standardized industrial process where a product is fully disassembled, its component parts recovered and tested for quality, and those parts reassembled into a new product that meets or even exceeds the performance and quality standards for a new version of the product.

Through these activities, we can reduce environmental impacts, create employment and revenue opportunities, and continue to use products that provide important functions for individuals, businesses, and governments.

What are some of the barriers to change and how can they be overcome?

One of the greatest barriers to change right now lies in the attitudes and behaviors of individuals. We have been normalized to expect ‘new’, without realizing the environmental cost of that expectation.

We have also been conditioned to see reuse, repair, and multi-service lives as something that could be a significant risk, from economic, performance, and safety perspectives. A cultural focus on consumer convenience, immediate gratification, and low prices, makes it very difficult for consumers to make more sustainable decisions.

An example of this is the cost of repair: Many people opt to replace a broken product because the cost to have it repaired is actually higher than the cost of the product. That initial price comparison is typically as far as the decision-maker goes; other important factors that are usually not considered are that the independent repairer owns a local community business, is highly skilled, is trying to make a living, and can prevent ~95% of the product from going into the waste stream.

On the other side of the example is the low-priced new replacement product: the low-price is often a factor of overseas production, lower product quality, and shorter lifespan. What is a ‘good’ decision in this example, and how can the consumer legitimately gather all of the details needed to make the good decision?

Many organizations struggle to know how to make changes to be more circular, and to effectively communicate these opportunities to shareholders and stakeholders.

A feeling that “…if it ain’t broke, don’t fix it…” often keeps organizations locked-in to conventional processes and approaches; in other words, it can be hard to get organizations to make changes until there is a crisis, such as a major supply chain issue.

How do wood pallets fit into the circular economy model?

There are three main principles of circular economy:

To minimize the waste associated with the production, use, and end-of-life of products and materials.
To extend the productive/service life of products and materials, and thus increase the productive utilization over multiple service lives.
To regenerate natural systems.

The wood pallet industry already practices circular economy in many ways; particularly for wood pallets that are designed to have multiple service lives (trips), and for which systems are in place to recover, evaluate, repair, and reuse those pallets.

For the first principle, many wood pallets are constructed from wood that is actually by-product of another wood manufacturing process – thus, waste from another process is used as the input to wood pallet manufacturing. There are many examples of repurposed wood pallets – once these pallets are no longer viable to serve as pallets, they are often integrated into alternative uses, instead of being directed to landfill as waste.

For the second principle, wood pallets are often recovered and repaired multiple times by wood pallet companies as part of the planned service life of the pallet – thus, the design of both the pallet and the system integrates repair over multiple use cycles, rather than requiring a new pallet every time.

Finally, wood pallets are constructed of a durable biomaterial that can be used to regenerate natural systems when they can no longer be used for anything else.

Many wood pallet companies choose to mulch the scrap wood materials that cannot be used any longer for pallets, and this mulch can be used in landscaping and biosphere applications – thus, enabling some of the embodied materials within the wood to be returned to the natural system, although it is important that this is only done with wood that has not been chemically treated.

Wood pallets are an excellent example of circular economy principles, in practice; an important thing for the industry to consider is how to more fully-embrace circular economy thinking, and where these systems can be further optimized and improved to reduce negative environmental impacts.