Tag Archive for: european union
The National Wooden Pallet & Container Association (NWPCA) Secures Major Win for Wooden Pallet Manufacturers in New EU Packaging Regulation
March 26, 2024 – NWPCA today announced a significant victory for wooden pallet manufacturers worldwide following the finalization of the European Union’s (EU) Packaging and Packaging Waste Regulation (PPWR). NWPCA’s successful advocacy efforts secured an exemption from the regulation’s reuse requirements for wooden pallets entering and leaving the EU under load.
The PPWR aims to tackle the pressing issue of packaging waste by introducing rules for all packaging placed on the EU market. Key objectives of the regulation include reducing packaging waste through recycling and reuse initiatives. As wood is a natural and fully recyclable material, NWPCA fully supported the PPWR’s aims to reduce waste and promote recycling. However, concerns arose regarding the prioritization of reusability over recyclability and the interpretation and implementation of the pallet reuse requirements, which posed a significant challenge to manufacturers and stakeholders.
Recognizing the potential impact on the wooden pallet industry and its users, the NWPCA engaged extensively with EU decision-makers, including the European Commission, the European Parliament, and member states in the Council of the EU. NWPCA explained the logistical issues with managing a reuse system of imported pallets and advocated for a targeted exemption to alleviate these burdensome requirements for wooden pallets entering and leaving the EU under load. Through consistent communication and collaboration with key stakeholders, NWPCA actively built support for this critical exemption.
Jason Ortega, Vice President of Public Affairs at NWPCA, stated, “This exemption is a clear win for wooden pallet manufacturers globally. Any company shipping goods into or out of the EU on a pallet will be exempt from challenging and costly reuse requirements. Wood pallets are made from a natural, renewable resource, and billions of them serve as the backbone of the supply chain. We know that in the United States, they are recovered and recycled 95% of the time, more than any other packaging product. We do not contribute to the growing global landfill problem. Our successful engagement on this issue minimizes supply chain disruptions and safeguards the pallet industry’s vitality.”
NWPCA’s success in securing the inclusion of the “within the territory of the Union” language in the final negotiated text is a testament to the organization’s steadfast dedication and collaborative approach. NWPCA acknowledges the invaluable support of its partners, including the international membership of the Global Wood Packaging Forum, the Canadian Wood Pallet and Container Association, the UK Timber Packaging and Pallet Confederation, and allies in the Canadian and United States governments, whose collective efforts helped raise awareness and advocate for the exemption.
The final adoption of the negotiated text by each branch of the EU institutions is anticipated to proceed smoothly, paving the way for the regulation’s implementation phase. NWPCA remains committed to supporting sustainable solutions within the transport packaging sector and celebrates this milestone achievement as a testament to the power of collaboration and advocacy.
Contact
Jason Ortega, JD/MBA
Vice President, Public Affairs
703.519.6104
Email
Wooden pallet & packaging body warns supply chain cost pressures remain
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.”
Wood pallet industry welcomes Waste Directive changes
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.