Pallets are the unsung heroes of global trade, making the distribution of goods in nearly every industry possible. In the United States, about 513 million pallets are manufactured each year, highlighting their primary importance in the shipping industry. Pallets are key to the effective movement and warehousing of consumer products. They are primarily constructed out of wood, though some are made from plastic. This vital resource is under severe threat—not just from theft and general loss, but increasingly from misuse in the form of bonfires.
Because pallets are often color-coded, that introduces a whole other layer of complexity into the management of pallets. Blue pallets, used by grocery stores and owned by the company Chep, are one famous example. These pallets are illegal to purchase, sell or destroy. Instead, they are built to be reused in numerous ways maximizing their utility and minimizing excess waste through the supply chain. Peco oversees an extensive, complex stock of unique pallets. They store more than 20 million red wooden pallets among their 90 depots. This effective stewardship is especially important as pallets are considered high-value, reusable assets in the logistics industry.
Even though they are so important, millions of pallets annually disappear across Europe due to theft. This widespread devastation takes a huge toll on individual businesses. It further sends tremors through the entire supply chain creating costs and inefficiencies. Not only are pallets vulnerable to theft, but that’s just the beginning. They pay shipment fines when they fail to comply with standards or remain untracked.
Unfortunately, palleting dumping is more severe than ever around the time of bonfires. Partygoers in particular gravitate toward using wooden pallets, as they stack neatly and add a colorful pop to the flames. One particularly stark instance came in July 2021 with a bonfire in Larne, County Antrim, that used a staggering 17,000 pallets. Either way, these practices raise red flags for sustainability and resource management.
To combat these challenges, several companies have developed programs to promote pallet return. Deposit or voucher schemes are very effective tools to incentivize businesses to return pallets after use. Beyond loss mitigation, these programs encourage the industry to adopt more responsible practices.
The surplus of 48.6 million additional wooden pallets produced by the UK in 2021. This was an incredible 8.3% jump from the year prior! This growth emphasizes the continued need for pallets despite these many obstacles. Businesses are becoming more reliant on these basic building blocks of logistics and freight transportation. For these reasons alone, tackling the issues of our pallet management is now needed more than ever.