The biggest pallet distributor in the world, CHEP, has called for its customers to stop hoarding wooden pallets and return them, as the pellet shortages gets worse.
“Since the outbreak of Covid-19 in 2020, supply chains globally and domestically have been experiencing multiple challenges ranging from pandemic-related disruptions to geopolitical tensions,” country general manager Lis Mannes said in a note to customers.
“We have seen impacts from international shipping disruption, timber, transport and labour shortages, and weather-related events. In response to these challenges, manufacturers, producers and importers are continuing to derisk their supply chains by increasing levels of ‘just in case’ inventory which is being held on pallets in warehouses.
“In addition, we are continuing to see hoarding of pallets and the circumvention of the industry’s circular ‘share and reuse’ pallet pooling systems.
“To support availability, we continue to urge all customers to please return any pallets surplus to your needs directly to CHEP, especially as those pallets are offloaded from the Christmas trading period, so that we can ensure that they are reconditioned and returned swiftly to the pool.”
