A PalletTrader survey found pricing over the past six months for white-wood pallets to be generally flat to slightly increasing, reflecting a stable but tenuous balance between supply and demand. Some sellers nevertheless reported higher competitive pressures that depressed pallet pricing in some regions, likely representing changing supply chain dynamics as well as buyer caution due to economic uncertainty.
“Our third semi-annual survey found that both the current viewpoint as well as future outlook sentiment among pallet market participants was generally optimistic yet tempered by a number of potential short- and long-term headwinds,” says John Vaccaro, PalletTrader’s CEO. “Among the most widely cited concerns were choppy economic activity due to uncertainty over tariff policies, their scope, duration and potential impact on growth and costs.”
Key takeaways:
· Among the headwinds cited were tariff increases, anticipated to have a negative impact by 60% of respondents; and lumber prices, with 60% of respondents expecting increases this year. Inflation and general operations expenses also were cited as ongoing cost concerns.
· Looking ahead, respondents expect demand to remain relatively strong over the next three months, coinciding with shipping’s annual peak season. While modest growth was expected from existing customers, some 42% of suppliers and 56% of buyers anticipate substantial growth from new customers.
· On the supply side, 71% of respondents reported no change in pallet supply compared to six months ago, with only 7% experiencing tightening. Some 79% of respondents forecast no change in supply over the next three months. Lastly, the survey found that on-hand pallet inventory retreated to more normalized levels, with 67% reporting two weeks or less of on-hand inventory. Only 10% reported inventory levels greater than 30 days.
