Wooden pallet & packaging body warns supply chain cost pressures remain

/in /by

Supply chains across Europe have been warned that remaining high prices of inputs other than raw materials are expected to keep costs of essential products such as pallets and packaging high for the foreseeable future.

The European Federation of Wooden Pallet & Packaging Manufacturers (FEFPEB) said according to some European industry indices, the costs of raw materials used to make packaging – pallet wood and steel (for nails) – fell during quarter 3 2022.

But high cost of energy and fuel are pushing upward rates for logistics, and for heat treating and kiln drying timber.

And other higher-priced inputs, including labour, are now making up a considerably larger proportion of the price of goods such as pallets and packaging than they were previously.

This has all pushed the price of these items up significantly.

According to the European Road Freight Rates Benchmark Report, produced by Transport Intelligence, Upply and IRU, in Q3 2022, average European road freight contract prices reached an all-time high, and while the cost of diesel would usually account for one third of total operating transport costs – but may now account for 50% of costs.

Market and consumer data company Statista says the average monthly OPEC basket crude oil price rose from US$85.41 in January 2022 to $117.72 in June 2022.

European Union agency Eurostat said that hourly labour costs rose by 4% in the Euro area in the second quarter of the year and 4.4% compared with the same quarter the previous year.

Increased costs of inputs such as these are impacting on manufacturing businesses of all kinds around Europe, including the pallet and packaging sector.

Fons Ceelaert, Secretary General of FEFPEB, said: “Having reached all-time highs, raw material costs have eased slightly in recent months. However, national associations across Europe are reporting that ongoing highs in the cost of energy, transport and labour are still impacting heavily on the prices paid by manufacturers and repairers.

“Pallet and packaging businesses across Europe are working closely with their customers to minimise the impact of these continuing pressures. In the meantime, FEFPEB will continue to monitor this situation and keep the market informed about the latest developments.”

Article published in PackagingNews on November 11, 2022.

NWPCA

NWPCA hosts first-ever Mexico Chapter conference

/in /by

MONTERREY, NUEVO LEON, MEXICO September 9, 2022 – The inaugural conference of the Mexico Chapter of the National Wooden Pallet & Container Association (NWPCA) took place from September 7-8 in Monterrey, Mexico. The Conferencia de la Industria Mexicana del Embalaje de Madera brought together more than 130 international business leaders from five countries.  

“The formation of the Mexico Chapter (Capítulo) in March 2022 has been a member-based initiative,” said Brent McClendon, president/CEO of NWPCA. “We’re excited to continue to support our Mexican members and become an industry thought leader in Latin America.” 

“The Mexican pallet market, valued at over USD 3 billion, is growing with many new business opportunities,” added Hilary Carr, senior director, Mexico & Latin America. “We were thrilled to bring an exciting program to enhance networking and have expert presentations on topics like sustainability, automation or investment opportunities, and the economy.” 

Some of the conference speakers included: 

  • José Luis Burnes, business development manager, American Industries Group
  • Natalya Calleja, vice president, Marketing & Communications, 48forty Solutions 
  • Brad Gething, PhD, vice president, Science & Technology, NWPCA 
  • Jocelyn Moreno Piña, director general, Cámara Nacional de la Industria Maderera 
  • Jeff Williams, president, PRS Group 

The Mexico charter was made official during a signing ceremony at the event. Fernando López Bello, Losifra, serves as president of the Capítulo and is an international director of the NWPCA Board, and María José Martínez, El Martillo, is vice president of the Capítulo.  

“It’s an honor to serve as the Capítulo President and represent Mexico on the Board of Directors,” added Fernando. “Over the past year, we’ve worked hard to expand our network and connect with wooden packaging manufacturers across Mexico. María José and I will continue to ensure that the Chapter highlights the dynamic nature of our industry by providing the highest level of professional service.” 

The Capítulo leadership and staff are full steam ahead with next year’s conference planned for Guadalajara.  

Thank you to sponsors: Softwood Export Council, Deacero (Mid-Continent Steel), Freedom Sourcing, GoFast Manufacturing, PRS Group, Southern Mississippi Trading, and Wood-Mizer. 

###  

ABOUT THE NATIONAL WOODEN PALLET & CONTAINER ASSOCIATION (MEXICO CHAPTER)  

The Capítulo Mexicana was created in March 2022 by NWPCA members in Mexico. The goal is to promote using wooden pallets and packaging as a sustainable and high-value supply chain resource in the Mexican market.  

ABOUT THE NATIONAL WOODEN PALLET & CONTAINER ASSOCIATION  

The National Wooden Pallet & Container Association (NWPCA) is the world’s largest organization of wood packaging professionals. NWPCA has over 700 companies that manufacture, repair, and distribute pallets and wood packaging in unit-load solutions or supply products and services to the industry. For more information on NWPCA, visit www.palletcentral.com.  

FEFPEB president calls for packing industry action to attract staff

/in /by

President of the European Federation of Wooden Pallet & Packaging Manufacturers (FEFPEB), Rob van Hoesel, has called on the wooden pallet and packaging sector to update its businesses and communication to ensure it can attract and retain high quality staff for the future.

The head of the organisation said the industry must adapt its operations to provide rewarding careers and personal development, and communicate its strong ethical characteristics to potential employees, to give it an advantage in an increasingly competition jobs environment for companies. Large numbers of staff have left positions across many sectors since Covid, while younger people coming into the market have new priorities to cater for, he added.

“Similar to those in many other industries, pallets and packaging businesses are facing a recruitment challenge, which we only expect to increase in the years ahead,” said Mr van Hoesel. “People are no longer just looking for financial rewards, they are looking to work for businesses that give them flexibility and opportunities to learn and develop, which have ethically sound operations and make a positive difference to society. We need to make sure we tick all these boxes in order to attract the highest calibre staff.”

He added that the wooden pallets and packaging industry already had many of the ethical credentials today’s employees were looking for.

“The wooden pallets and packaging business is inherently ethical, based on a raw material that is endlessly renewable, and manufactures, repairs and reuses its products until they are recycled at the end of their useful life. With a majority of wood from managed, sustainable sources, the industry encourages tree planting, which helps remove carbon dioxide from the atmosphere. It has care for the environment at its heart and, as illustrated during the pandemic is an industry that is essential to the smooth running of the global economy,” he said. “These are just some of the attributes which make it an exciting place to work and attractive to the younger generation, and we need to make sure we communicate this well to potential employees.”

He added that companies in the industry needed to keep up to date with technological developments, to help them attract staff and compete well into the future.

The subject of attracting and retaining staff will be one of those addressed at the 70th FEFPEB congress, which will be held on September 28-30 in Florence, Italy. Other topics will include sustainability, reforestation and the future of the pallets and packaging sector. The event will include a one-day tour around some of Italy’s leading pallet and packaging businesses.

Source: Timber Trades Journal Online, August 17, 2022 – https://www.ttjonline.com/news/fefpeb-president-calls-for-packing-industry-action-to-attract-staff-9934351/

European Business Reusing More Wooden Pallets

/in /by

European pallet and packaging manufacturers are repairing more wooden pallets for reuse than ever, according to a survey by the European Federation of Wooden Pallet & Packaging Manufacturers (FEFPEB).

The latest figures from the organization, show that 197.5 million pallets were repaired in 2019, an increase of 25 percent from the previous survey carried out three years earlier.

In countries that are running formal packaging surveys – such as France, the Netherlands, and the UK – pallet repairs are generally equal to, or exceed, the numbers for new pallet production. Some 435.9 million pallets were manufactured during the same three-year period, an increase of 12 percent on FEFPEB’s 2016 study. Accordingly, the organization estimates the European total to be closer 500 million.

These figures do not yet include repairs to pallets in several of FEFPEB’s 18 member countries and there are also significant numbers of pallets inspected and reused every year without needing to be repaired.

The figures also show an increase in the use of industrial and lightweight packaging, growing by 8.5 and 14 percent, respectively, between 2016 and 2019.

FEFPEB President Rob van Hoesel said: “We are encouraged by the results of FEFPEB’s latest manufacture and repair survey, as they show not only an increase in the use of all kinds of wooden packaging but also a welcome growth in reuse and repair of these products. Wooden pallets and packaging have a key role to play in reducing the carbon footprint of businesses and establishing true sustainability in supply chains.

“Awareness about the need for action on climate change has increased, so we can expect demand for environment-friendly business solutions such as wooden pallets and packaging to increase in the months ahead. I will be interested to see the impact of this on our manufacturing and repair figures for the three years ahead.”

At FEFPEB’s 2019 agm, Van Hoesel called for the pallet and packaging industry to target sourcing 100 percent of its timber from certified sources, such as PEFC and FSC, to further increase its strong environmental credentials.

“With COP26 taking place in Glasgow, it’s a great time to remind ourselves of the important place wood has in building the circular economies we need for the future. Wood is already the most sustainable choice of raw material for manufacturing and as such has been recognised as central by authorities including the European Commission to doing this and lowering the carbon footprint of businesses,” said van Hoesel.

FEFPEB is continually seeking to improve the collation and analysis of data on the manufacture, reuse, and repair of wooden packaging and pallets. With packaging surveys already taking place in several countries, the organization is working with its membership to encourage further measurement and reporting to build up an increasingly accurate picture of developments within Europe.

FEFPEB has collaborated with the European Woodworking Industry Confederation (CEI-Bois) to ensure that pallets and packaging have been included as part of the organization’s presentation of the forest-based industries at COP26 and submissions on developing more sustainable business in the EU.

The packaging and pallet industry purchases approximately 25 percent of the European sawmill output of timber.

Notes:

  • The European Federation of Wooden Pallet & Packaging Manufacturers (Fédération Européenee des Fabricants de Palettes and Emballages en Bois – FEFPEB) represents European national timber packaging associations, including the pallet, lightweight packaging and industrial packaging sectors. It was established in 1946.
  • It is a not-for-profit organisation, whose objectives include promotion of timber packaging and representing the interests of the European wooden pallet and packaging industry.
  • National professional associations of wooden pallet and packaging manufacturers are full members of FEFPEB.
  • Other companies involved in the industry, including suppliers of timber and timber blocks, machines and equipment are associated or individual members.
  • The major European pallet pools (including EPAL, CHEP, LPR, IPP Logipal and PRS) are also part of FEFPEB.For more information, please contact: info@fefpeb.eu

Source: FEFPEB Press Release, November 10, 2021 – https://www.fefpeb.eu/news/press-release-european-business-reusing-more-wooden-pallets

Global Wood Packaging Forum Celebrates Certification of Carbon Footprint of Wood Pallets

/in /by

Statement from the Global Wood Packaging Forum 

The Global Wood Packaging Forum (GWPF) congratulates the National Wooden Pallet and Container Association (NWPCA) and the Pallet Foundation on its Environmental Product Declaration (EPD) for United States Wooden Pallets. This document, certified by UL (formerly Underwriter Laboratories) and produced in conjunction with Forest Products Lab, the research wing of the U.S. Forest Service, is the first of its kind for a product in the distribution packaging space. This declaration speaks to the quantitative impact that wooden pallets have on the environment beyond their reusable, recyclable and biodegradable qualities. 

Brent McClendon, President and CEO of the National Wooden Pallet & Container Association commented, “We are proud of the results of this EPD. When considering its life cycle, wooden pallets can have a potential net carbon positive impact. Through the unique properties of wood, carbon offsets may be achieved by the reuse of pallet materials and substituting wood fuel from pallet waste (e.g., unusable pallets) for natural gas.” 

EPDs provide consumers and professionals with transparent and product-specific environmental information through an independent validation from a third-party organization. A critical component of the wooden pallet EPD study is a life cycle assessment (LCA), measuring the impacts of a wooden pallet’s product stages of gathering, transporting and manufacturing raw materials, the use and repair of the pallet, as well as its end of life usage.  

John Dye, President of TIMCON, the UK Timber Packaging and Pallet Confederation commented, “The industry has been promoting for years the environmental benefits of wood and now thanks to the work of the NWPCA these claims have third party verification.” 

Scott Geffros, General Manager of the Canadian Wood Pallet and Container Association notes “This EPD sets that standard that all competing platforms to wood packaging must follow.  It supports what we have long known about the sustainability of wood and wood packaging.  The Canadian industry applauds the work of the NWPCA and The Pallet Foundation in making the EPD possible.” 

As part of this process, a Product Category Rule (PCR) with UL was also developed.  “UL applauds the efforts of NWPCA and the Pallet Foundation to develop a PCR and now issue an EPD for wooden pallets to better understand the environmental impact they have,” said Alberto Uggetti, vice president and general manager of UL’s environment and sustainability division. “The reusable nature of wooden pallets makes them a more circular, sustainable form of reusable packaging, and with this EPD, manufacturers will be able to communicate the impacts of their products with more transparency and confidence.” 

Today, wood remains a fundamental and sustainable part of the supply chain from manufacturer to distribution center, and finally retail store. Wood pallets are moving goods billions of times a day globally; every day, seven days a week, 365 days a year. Wood pallets and wood packaging truly do move the world, and this report confirm that it’s done sustainably. 

The full wooden pallet EPD, including its methodology and data, and the corresponding LCA, can be found here. 

About GWPF 

The Global Wood Packaging Forum is a collaboration of associated wood packaging organizations and representatives from around the world that meets to discuss global issues that affect the industry.  

About UL 

UL fosters safe living and working conditions for people everywhere through the application of science to solve safety, security and sustainability challenges. The UL Mark engenders trust enabling the safe adoption of innovative new products and technologies. Everyone at UL shares a passion to make the world a safer place. We test, inspect, audit, certify, validate, verify, advise and train and we support these efforts with software solutions for safety and sustainability. To learn more about UL, visit UL.com. 

Additional Resources

The Supply Chain’s Unsung Hero: The Wooden Pallet

/in /by

The impact that wooden pallets and containers have on the supply chain as an important and sustainable stakeholder, especially how it impacts up the chain of supply and demand for the industry’s customer base, is a message that cuts across the cluttered decision making process that companies are faced with when choosing their distribution packaging.

Read more

NWPCA Announces Environmental Product Declaration for U.S. Wooden Pallets

/in /by

Environmental Product Declaration (EPD) and Life Cycle Assessment (LCA) on Wooden Pallets were certified by UL, a leading EPD operator, and developed in conjunction with Forest Products Laboratory, the national research lab of the United States Forest Service.

Today, the National Wooden Pallet & Container Association (NWPCA) and the Pallet Foundation presented an Environmental Product Declaration (EPD) for U.S. wooden pallets that reinforces the environmental attributes of wooden pallets for the supply chain and procurement industries. This document, certified by UL and produced in conjunction with Forest Products Lab, the research wing of the US Forest Service, is the first of its kind for a product in the distribution packaging space. This declaration speaks to the quantitative impact that wooden pallets have on the environment beyond their reusable, recyclable and biodegradable qualities.

EPDs provide consumers and professionals with transparent and product-specific environmental information through an independent validation from a third-party organization. A critical component of the wooden pallet EPD study is a life cycle assessment (LCA), measuring the impacts of a wooden pallet’s product stages of gathering, transporting and manufacturing raw materials, the use and repair of the pallet, as well as its end of life usage. When considering its life cycle, wooden pallets can have a potential net carbon positive impact. Through the unique properties of wood, carbon offsets may be achieved by the reuse of pallet materials and substituting wood fuel from pallet waste (e.g., unusable pallets) for natural gas.

“The findings of the life cycle assessment and subsequent EPD are an affirmation of our belief that wooden pallets are truly nature’s packaging,” said Bob Wenner, President of Pallet Service Corporation. “On top of UL’s Product Category Rules (PCRs) for wooden pallets published last year, this EPD establishes wooden pallets as a leader of environmental stewardship and provides a tool for pallet users to measure their own impacts.”

UL’s PCR was the first of its kind for shipping materials and is used to standardize how environmental impacts are determined. This research also complements an independent study published earlier this year at Pennsylvania State University that indicates wooden pallets have a significantly lower carbon footprint than plastic pallets during their life cycle.

“UL applauds the efforts of NWPCA and the Pallet Foundation to develop a PCR and now issue an EPD for wooden pallets to better understand the environmental impact they have,” said Alberto Uggetti, vice president and general manager of UL’s environment and sustainability division. “The reusable nature of wooden pallets makes them a more circular, sustainable form of reusable packaging, and with this EPD, manufacturers will be able to communicate the impacts of their products with more transparency and confidence.”

Funded in part by the Pallet Foundation, this EPD solidifies wooden pallets as the clear sustainable choice for supply chains across industries. “This industry-wide wood pallet Environmental Product Declaration (EPD) is not only a first in the supply chain, it is a major step toward scientifically validating the benefits of wood pallets,” said Brent McClendon, President and CEO of NWPCA. “Beyond anecdotal evidence, this research supports the sustainability of wood. The results are something that all wood pallet companies can trumpet to their customer base as a new tool in their toolbelt.”

The full wooden pallet EPD, including its methodology and data, and the corresponding LCA, can be found here.

ABOUT NWPCA

The National Wooden Pallet & Container Association (NWPCA) is the largest organization of wood packaging professionals in the world, with more than 670 company members in 28 countries who manufacture, repair and distribute pallets and wood packaging in unit-load solutions, or who supply products and services to the industry. To learn more about NWPCA, visit palletcentral.com.

ABOUT UL

UL fosters safe living and working conditions for people everywhere through the application of science to solve safety, security and sustainability challenges. The UL Mark engenders trust enabling the safe adoption of innovative new products and technologies. Everyone at UL shares a passion to make the world a safer place. We test, inspect, audit, certify, validate, verify, advise and train and we support these efforts with software solutions for safety and sustainability. To learn more about UL, visit UL.com.

MEDIA CONTACT

Annette Ferri
NWPCA VP, Communications
Email
703.519.6104 ext. 207

###

Pallet Manufacturing is an “Essential Service” and “Critical Infrastructure” for Supply Chain Continuity and COVID-19 Recovery Efforts

/in /by

Statement from the Global Wood Packaging Forum

As our global leaders across the world put in place emergency measures to protect the world’s population from the spread of COVID-19, we respectfully urge that policies being developed and implemented safeguard the ability of essential businesses to continue operations. We need to avoid an inadvertent mistake that has a global negative impact.

Wooden pallets and containers are essential services and critical infrastructure. We are the ‘blood cells’ of the body of the world; moving food, medical supplies, pharmaceuticals, chemistry, beverages, and essential paper products. There are 2 billion pallets in circulation in the United States alone and over 4 billion in Europe. Businesses that manufacture, repair wooden pallets, offer pallet pooling services, and provide wood containers and wood packaging that are essential to maintaining critical operations and the flow of commerce. Community members providing critical care, and services should be assured they will receive their shipments in a timely manner and in good condition. This will be crucial beyond the current crisis, when we turn to recovering from this pandemic.

We are appealing to all Governments to support pallet and packaging manufacturers, pallet pools, reconditioned pallet businesses, and the logistics industry; and also ensure that global sawmilling and material support operations are able to continue providing timber and essential equipment and supplies to our operations. Many pallet manufacturing businesses affected are family owned and support their local economy. The industry does this through purchases of lumber, nails, machinery, and related goods. Most importantly, wooden pallets and containers are a critical piece of global supply chain logistics, as no other ‘essential’ goods make it through the supply chain without pallets.

This is an unprecedented situation and we will be working with the industry and with the Government to ensure these businesses can carry on operating to ensure continuity of supply of these essential products.

About:

The Global Wood Packaging Forum is a collaboration of associated wood packaging organizations and representatives from around the world that meets to discuss global issues that affect the industry. 

Wood pallet industry welcomes Waste Directive changes

/in /by

FEFPEB welcomes changes that affect how recycling targets for wooden packaging are calculated, following work by the industry.

The European Federation of Wooden Pallet and Packaging Manufacturers (FEFPEB) said the European Union has accepted that wood used in both the reuse and repair of pallets and packaging should be included in the calculation of recycling rates. It informed members about the changes – which have been incorporated into the Packaging & Packaging Waste Directive – at its two-day spring meeting, held in Edinburgh at the beginning of May.

Speaking at the meeting, secretary general Fons Ceelaert, said FEFPEB had advocated the European Union’s Packaging & Packaging Waste Directive change and was pleased with the outcome. “Wood used in both reuse and repair of pallets and packaging has been accepted, which is a real success,” he said. “Not reaching recycling targets could cause great problems in terms of penalties, so we are happy with this helpful new regulation, which removes a lot of concern for our industry.” He added that under the amended directive, replacing one component in a pallet also now allows the full weight of the pallet to be accounted for as recycled.

Read the full story in Packaging News.

Environmental Excellence

/in /by
Read more

Global Wood Packaging Forum

1421 Prince Street, Suite 340 Alexandria, VA 22314-2805
Tel. 703 519 6104 | Fax. 703 519 4720

Site Navigation:

© 2018 Global Wood Packaging Forum. Privacy Policy