Industry body highlights challenges facing reconditioned pallet sector as timber, labour and logistics costs increase amid ongoing supply chain disruption
The National Association of Pallet Distributors (NAPD) is advising supply chains that rising costs of raw materials and other inputs are placing increasing pressure on the used pallet market.
The organisation, which represents the UK pallet repair and reconditioning industry, said June PMI data for the UK market shows timber, pallet timber, reused timber, pallet logs, and other components are all up in price.
The monthly report also pointed to continued upheaval in the market caused by port and other shipping disruption, customs delays, materials shortages, and the impact of impending trade tariffs.
In the last two months, both the Timber Packaging & Pallet Confederation (Timcon) and the European Federation of Wooden Pallet and Packaging Manufacturers (Fefpeb) have also both highlighted independent measures showing significant upwards movement.
“The latest UK market confirms what our members have been telling us; that the market for reconditioned pallets is now facing many of the same pressures affecting production of new,” said Paul Tait, NAPD chairman.
“This includes rising inflation in the price of timber and for labour and logistics.”
Saleh Hijazi, press officer for NAPD, noted: “In April, Fefpeb pointed to the rising price of sawn timber across parts of Europe, despite flat demand.
”The organisation’s pallet timber price index – which collates measures in Germany, Italy, the Netherlands, Sweden, and the UK – showed all countries apart from Italy tracked upwards during the first quarter of the year.
“The following month, Timcon highlighted increasing prices, with the UK’s AFRY index rising 0.6 per cent for the first quarter of 2025, and Germany’s HPE index for pallet timber up 7.1 per cent between January and April – all of which is impacting on the businesses in the repair and reconditioning sector, too,” Hijazi added.
NAPD said that reused pallets remain a sustainable and cost-effective choice and it is advising supply chains to contact their suppliers to discuss these pressures.
