Overall, the pallet sector, with its direct link to manufacturing and construction, has been suffering. “The year started very poorly; things seemed to improve at the end of spring but they’re falling away again now,” one contact told TTJ.
Another source estimated that demand for pallets had fallen by 30-40% since last October. “The pallet market is very difficult, demand is way, way down. All end user markets are depressed. There has always been an overcapacity but this has increased with lack of business.”
One pallet manufacturer said forward ordering, was steady, albeit at a low level. “Ultimately it’s still quiet. There seems to be a pattern of a surge in interest and then quiet; it’s not continuous. People are being very cautious about holding stock.”
Mills also appear to want to increase their prices but are finding it hard to do so legitimately when manufacturing is down across the board.
The raw material shortage is weighing on the pallet sector, prompting one contact to point out that “any potential issues are going to be to do with shortages as opposed to demand”.
Packaging nematode crackdown
EU emergency measures against the pine wood nematode came into force on June 16, requiring all member states to carry out ‘import’ controls on conifer wood, bark and plants consigned from Portugal to ensure they carry a valid plant passport or, in the case of wood packaging material, comply with ISPM 15.
Forestry Commission inspectors will randomly inspect commercial vehicles from Portugal as they disembark from ferries and also check premises of traders known to handle Portuguese goods. Any suspect material is likely to be held for sampling, and non-compliant material will be dealt with in accordance with the normal rules.
From January 1, 2010 all wood packaging material, regardless of age or origin, leaving Portugal for any destination will be required to comply with ISPM 15. Currently, only material of Portuguese manufacture must meet ISPM 15. The Forestry Commission strongly recommends that UK exporters of goods to Portugal use ISPM 15-compliant wood packaging to enable its subsequent reuse.
