Lumber prices soar, plastic pallets are about to usher in a "highlight moment"

It's no secret that lumber prices have soared over the past year, affecting wood-intensive industries such as home building
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As the United Fresh Product Association pointed out in an email to Supply Chain Dive, rising lumber costs have also caused the price of wooden pallets to skyrocket by 400%
.

Not only will wooden pallet makers compete for lumber from the housing market as builders get back to home construction, but both industries must also compete with forestry companies that are bought by Big Oil and other big companies not to cut down trees.

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Efforts to maintain forests as carbon sinks are depleting the supply of wood
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This is where plastics come into play in these "green" initiatives
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Plastic pallets have been competing with wooden pallets for over two decades
.
In fact, according to a March 2021 report by Grand View Research, the global plastic pallet market is expected to reach $10.
4 billion by 2028, expanding at an average annual growth rate of 5.
6% from 2021 to 2028, due to There is an increasing demand for strong, long-lasting, pollution-free and eco-friendly packaging, says Grand View Research
.

Plastic pallets are usually made of sturdy materials, including polypropylene (PP) and high-density polyethylene (HDPE), and are mainly used for multiple shipments
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In addition, plastic pallets are made from a combination of virgin and recycled plastic resins, representing a good end use for recycled materials
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This also makes plastic pallets more sustainable and less expensive, thus generating considerable traction within the market
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In 2020, HDPE has the largest value share in the materials segment
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HDPE pallets are easy to clean and are highly impact, solvent and corrosion resistant
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They are less prone to damage from rough handling by forklifts and other material handling equipment, if not impossible
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Additionally, HDPE trays have strong weather and chemical resistance, which makes them suitable for pharmaceutical and food applications
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From 2021 to 2028, the growth of the PP materials market will reach the highest level
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Since PP trays are very durable, they are ideal for heavy duty applications
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"PP pallets are more expensive than HDPE pallets; however, PP pallets are more economical due to their superior durability, allowing for more cycles than HDPE," says Grand View Research
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Unlike wooden trays, plastic trays can be soaked in leaking meat, fruit and other food items and are easily cleaned by high pressure jets with low maintenance costs
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Wooden pallets are highly susceptible to moisture and can harbor bacteria, pests or fungi that can damage stacked food and medicine
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In addition, Grand View Research reports that wood chips or protruding nails in wooden pallets have the potential to damage pharmaceutical packaging, so end-users are increasingly opting for lighter-weight plastic pallets that avoid such risks
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Orlando, Florida-based iGPS Logistics, one of the largest suppliers of plastic pallets and containers in the United States, announced in April that Coscto was shifting its supply chain to plastic pallets
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Coscto is working with a growing number of suppliers to "essentially rewrite the pallet collection model that has been dominated by wood for more than half a century
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At the annual supplier event in September 2019, Coscto leadership shared Its own vision requires suppliers to seriously consider switching from 'regular' heavier wooden pallets to lighter and more efficient plastic pallets
," iGPS said
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“The durability and stronger construction of plastic pallets means that compared to wood, there is much less damage
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A large portion of the product can be effectively inspected before being shipped directly to suppliers from Coscto’s network of warehouses
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Coscto's global packaging plan for 2019 will be completed by the end of 2021, making Coscto the first retailer in the world to confirm its preference for lighter and more durable plastic pallets," iGPS added
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