A national shortage of timber pallets used to transport consumer goods, from food to electronics and even beer, further demonstrates just how important our national forest industries are to provide timber and fibre products, according to the Australian Forest Products Association. Source: Timberbiz
“In the lead up to Christmas, Australia’s consumer goods supply chain is reporting a shortage of timber pallets to move goods,” AFPA CEO Ross Hampton said.
“Like many essential timber and fibre products that are sourced from Australia’s sustainably managed plantations and native forests – you don’t realise how badly you need them until they aren’t there,” he said.
Timber pallets were manufactured from both hardwood and softwood and provided an essential, cost effective, and carbon friendly means of transporting goods through Australia’s logistics supply chains.
“They in fact support all but a small percentage of movements through Australia’s major supermarket retailers like Coles, Woolworths, ALDI, IGA and Costco,” Mr Hampton said.
“We produce over two million pallets each year to support movement in Australia’s food supply chain.”
Pallets are made from sustainable native and plantation timbers that aren’t suitable for construction or appearance-grade products such as decking. These pallets can be repaired up to 50 times during their 6–10-year lifespan and last 20 to 30 trips between repairs. The average weight of a standard pallet is 30-40kg.
“Combined with national timber supply constraints, the COVID-pandemic has led to goods businesses increasing sitting stock levels to manage disrupted supply lines while the return of pallets has also reduced because of COVID protocols,” Mr Hampton said.
“These factors contribute to the pallet shortage.
“The way to future-proof these supply issues is by growing Australia’s plantation estate and guaranteeing supply security for sustainable native timber industries so we can continue to manufacture essential products like timber pallets in this country.
“Australia’s forest industries provide essential timber and fibre products for use in everyday life, from house frames to pallets to tissues. If there’s one good thing to come from supply pressures of these products, it’s that the federal and state governments need to work together to ensure supply security for the future,” Mr Hampton said.
Victorian Forest Products Association CEO Deb Kerr said that according to the Australian Pallet Survey (Deakin University, 2017), the “supply of hardwood timber is expected to be impacted by a general shortage of hardwood supply in Australia from 2025, as harvesting of native forests transitions to plantations”.
“It seems like this shortage has arrived four years early,” Ms Kerr said.
“As more and more supply issues come to light, from house frames to pallets, we urge the Victorian Government to change their position on native forestry,” Ms Kerr said.
“Forestry is sustainable and, when managed well like it’s done here in Victoria, will continue to produce vital native timber furniture and other appearance grade products, along with wood fibre and paper and pulp products that we all depend on – and of course the pallets to move our food and other goods around the nation,” she said.
