National Association of Pallet Distributors member companies have warned of a dramatic fall in the number of used pallets in the market.
Members believe the situation is due to the rapid rise of timber prices and the consequent increase in the cost of new pallets.
The NAPD said Europe was under the same economic pressure as the UK and the used pallet shortage here was made worse by a higher demand for used pallets in Europe.
“Vast numbers of pallets are being returned to Europe instead of staying in the UK and this is new pressure on our stocks of used pallets,” it said.
“New industries create manufacturers that are now competing for new and used timber for wood fibre for biomass projects. This is also adding to the pallet shortage.”
It said the cost to pallet recyclers to obtain used pallets was therefore increasing, as other markets compete for them.
“Fuel costs add to the final price and these extra costs have and will continue to be passed onto customers.”
