Where Have all the Pallets Gone? Shortage Has Growers in a Pickle
It’s becoming clear that growers across the country are feeling the effects of supply shortages.
Last week, the Produce Marketing Association (PMA), which represents the production, packaging, and retail segments of the fresh produce, and floral industries, emailed the following alert to its members:
“There is currently a shortage of all types of pallets available for rent or sale in the U.S. This is not unique to just the produce and floral industry.
Ed Treacy, PMA’s Vice President of Supply Chain and Sustainability, has spoken to executives from CHEP USA and PECO Pallet, and they both have reported their companies are facing challenges in supplying pallets to their customers.
Here is the situation:
- There is a lumber shortage in the U.S. due to COVID-19 shutting down the lumber mills for weeks.
- The surge in new house and renovation construction is consuming most of the wood available from the mills.
- The price for lumber is at an all-time high.
- Distributors, wholesale, and retail inventories are very high for non-perishable product to protect them from further supply chain disruption. That product is on pallets in their warehouses and distribution centers.
- There is a shortage of all pallets, not just CHEP and PECO pallets. White pallets (lower quality and not always rack-able) also are not available.
- Both CHEP and PECO Pallets reported that they are doing everything in their power to deal with this crisis.
All PMA members should plan on this situation not being resolved in the near term. Secure any pallet you can and inform your customers that they may receive their shipment on a non-preferred pallet until this situation is resolved.”
For more, continue reading at GreenhouseGrower.com.
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