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Pallet Prices & Shortage: What You Should Know

December 6, 2021

Pallet prices in Sydney have been stable for decades, with supply never being an issue and most pallet companies and manufacturers would want to generate more business and sell more from their stock. Nowadays and since Covid-19’s lockdowns were first introduced, that game has changed.

Many people used to repurpose and recycle pallets and use them in DIY furniture, bookshelves, garden art and more, but with the prices increasing and stock shortage, wooden pallets are now more of a gem, and many pallets suppliers in Sydney cannot actually find stock to sell.

It all started with Covid-19 in early 2020 which had lockdowns introduced and operations were cut and caps on workers were reinforced and sawmills weren’t open to cope with the increase in demand for shipping domestically and internationally, and the impact of this is still to be felt in 2021 and it looks like it is not looking any better for 2022; with the great resignation hitting multiple countries, and making its way to Australia. In an industry involving sawmills, we would expect the great resignation to have a greater impact, since it is not an exciting profession or considered to be the safest. 

At the same time, lowered interest rates had people scramble to go into the real-estate market trying to build houses and the bushfires experienced in New South Wales in late 2019 didn’t help matters either.  

It is now clear how the record-breaking demand along with the prolonged labour shortage led to this massive shortage in pallets, leading to skyrocketing prices in Sydney as well as other markets. While we are seeing prices beginning to stabilise and stock levels starting to improve, we are not seeing this happening as quickly as we would have hoped, which is affecting everyone, including freight companies and their customers.

Some pallet suppliers in Sydney have more than doubled their prices. The demand is still increasing though as consumers are now more accustomed than ever to e-commerce during the pandemic, and not many have returned to their prior shopping habits. 

The pallet shortage has impacted the businesses that rely on shipping to deliver products to their customers, which is adding to their costs along with many other factors. 

At Cooperage Pallets, we are fortunate enough that we have stock readily available at affordable pricing to our customers, and we have been leading the way through the pandemic. To lessen the impact on your business operations, we would like to suggest the following:

 

  • Requesting a quote from affordable pallet companies in Sydney 
  • Considering non-timber pallets such as plastic pallets
  • Considering used pallets as an option
  • Learning how to recycle pallets

The pallet shortage won’t last forever but we are here to help. If you are looking to buy pallets in Sydney or prepare your packages for shipping, contact us today.

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