If you’ve been trying to source plastic pallets in 2021, you already know it ain’t pretty. The reality right now is that prices are on a steep trajectory. And, it may be some time yet before we see any relief.
What gives? If you’re pointing the finger at COVID-19 (and who isn't), you’re part way there. Let's take a look at more factors contributing to this chaotic ride.
Plastic Supply Chain Disruptors
We've never seen a plastic market like this before. The raw materials required to make plastic pallets including polypropylene (PP) and polyethylene (PE) are in short supply. The market is so tight right now that factories are starting to slow production or completely shut down if their product relies on plastic.
Here are the top culprits for rising prices:
So now what?
Talk with your pallet supplier to develop a plan. Prepare for possible delays and future increases in price. If your system has room for flexibility, alternative pallet types or sizes may help bridge the gap until we see the market return to normal.
What impacts are you feeling the most in this plastic pallet market? Tell us in the comments below.
Post by: Mike Cunneen, Director of Sales & Marketing
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