New EU regulations, supply constraints, and economic uncertainty were discussed at the recent Timcon general meeting
Changes to regulations, supply constraints, fuel prices impacts material costs, wider cost issues, and ongoing economic uncertainty are set to create some of the most challenging conditions for the wood pallet and packaging sector in the year ahead.
That was according to speakers at the recent Timber Packaging & Pallet Confederation (Timcon) general meeting, held in Manchester in early March.
They offered updates on forthcoming compliance obligations, including the EU’s PPWR (Packaging & Packaging Waste Regulation) and EPR, the dynamics of the UK and global economy, the timber supply situation, and the potential impact of emerging conflict in the Middle East alongside a highly uncertain market.
Nikhil Varghese, director of global advisory and EU affairs experts, DGA Group, told the meeting that PPWR was expected to be enforced from August this year – and that it would apply to all forms of packaging, including wooden pallets, export packaging, cable drums, and lightweight packaging.
He explained that packaging will be required to be designed for recycling from 2030, while at least 40 per cent of transport packaging should be reused by the same year – an “aspirational target” that will increase to 70 per cent by 2040.
“By 1 January 2030, 100 per cent of transport packaging that is used within the same EU member state and for intra-company use should be reusable, so it’s a significant topic of discussion in the EU right now,” he said.
Varghese detailed current or possible exemptions for wooden packaging based on its superior sustainability credentials, but stressed the importance of the sector continuing to engage closely with the process to ensure that this is reflected in policy decisions affecting market access.
“As a wood industry, we have a big role to play in making the Commission understand the recyclability of wooden packaging and that you shouldn’t just copy and paste ‘design for recycling’ criteria that have been designed for plastics, to wood, which they have been doing a lot lately,” he said.
“It is key that we define a joint industry position.”
Global overview
The meeting also heard updates from the UK, European, US, and global wood market.
Jason Ortega, senior vice-president of the National Wooden Pallet & Container Association (NWPCA) gave an overview of his organisation’s name change to Woodpack Global.
This has been driven by the fact that more than half of its membership is now international, with more than 400 members across 43 countries – and aims to help it engage better with policymakers outside the US.
“The supply chain is global,” he said. “It really doesn’t matter where you’re based, your pallet can end up anywhere.”
Ortega said the largest issue affecting business is currently uncertainty, while tariffs and other policies have added to the generally difficult trading environment and intensified price competition.
Nick Boulton, TDUK’s head of technical and trade policy, presented the latest on trade issues and availability, including the possible re-entry of Canada as a supplier to the UK market following the exit of Russian wood and the impact of approximately 10mn m³ of forest being blown down by storms and potentially entering pallet markets.
Rob Driessen, owner and managing director of specialist pallet and packaging wood procurement firm Connec3, gave an overview of wider influences currently impacting on the market.
He said with growth returning to the Eurozone, Asia, and the US, he expects demand to increase in the coming months, alongside pressure on supplies that are already limited.
“If demand continues to recover, supply will not be able to keep up – and that will impact both price and availability,” Driessen noted.
“This was an extremely valuable meeting, covering a wide range of essential issues for the wood pallet and packaging sector, from the growing burden of regulatory compliance to extremely challenging market dynamics and economic headwinds,” said Timcon president John Dye.
“It demonstrated how interconnected these issues are and how important it is for us to come together as an industry, share information, and work together to tackle these challenges, and represent the sector with a unified voice.”
