Storms and floods likely to increase pallet prices

In the first months of 2014 the UK was hit with some of the worst storms and flooding in history, now that the Somerset Levels are finally draining we can see the other ways that the weather is going to affect us.

One of these effects to hit the Logistics sector is the price of pallets. The weather has put additional stress onto forest-based industries, according to the Timber Packaging & Pallet Confederation (TIMCON).

TIMCON general secretary Stuart Hex said: “Widespread damage caused by the recent storms and flooding means we are anticipating much stronger demand than usual for fencing and construction timber. This will potentially have further impact on the availability of timber to the pallets and packaging industry and as well as other sectors.”

The latest Markit PMI Prices and Supply Monitor report states that out of all raw material inputs, it is timber that is by far experiencing the severest supply shortages and, as a consequence, upward pressure on price.