The promise of real-time cold chain visibility has long intrigued cold chain leaders. For practical purposes, however, that initial excitement seemed to atrophy into many years of ‘hurry up and wait.’

The promise of real-time cold chain visibility has long intrigued cold chain leaders. For practical purposes, however, that initial excitement seemed to atrophy into many years of ‘hurry up and wait.’ During that time, onboard temperature recorders have continued to be the accepted practice for temperature monitoring in transit. Unfortunately, such devices draw attention to temperature issues after the fact, helping only in identifying compromised product rather than in informing front-line decision making and preventing product loss.

Gartner’s Hype Cycle for Emerging Technologies for 2018 continues to position IoT platform close to the “Peak of Inflated Expectations” and another five to ten years away from maturity. None the less, the number of connected devices continues to grow rapidly. According to IHS Markit, the IoT market will increase from 15.4 billion devices in 2015 to 30.7 billion devices in 2020 and 75.4 billion in 2025. According to the 2018 MHI Annual Industry Report, 59% of survey respondents believe that Internet-of-Things (IoT) adoption will be disruptive or provide a competitive advantage, up from 55% in 2017.

New technologies and service providers have continued to emerge in recent years, although the uptake of pallet-level IoT monitoring remains modest. Barriers to IoT adoption in the cold chain have long known but until LPWA (low power wide area) technology there was no alternative solution for the whole supply chain.

“Tracking solutions have either been too expensive or fail due to issues with the need to go through gates or have a manual screening procedure,” explained Ittay Hayut, Co-founder & CEO of hoopo, a provider of affordably priced asset management and tracking solutions. Using hoopo’s unique geolocation technology, its LPWA tracking solution is capable of geo-locating devices without using GPS.

“The expensive solutions are also not an integral part of the pallet and require frequent battery replacement when using GPS,” Hayut continued. The low power hoopo solution, on the other hand, provides long battery life and is securely pallet mounted to provide ease of use.

The Value of Cold Chain Visibility

IoT provides considerable value for the cold chain in terms of preventing food loss, providing automated data capture in support of food safety compliance, improving logistics efficiency, data analytics, and creating a better customer experience.

Improved food safety compliance  IoT solutions can help simplify and automate the increasingly arduous recordkeeping requirements of regulators while reducing the opportunity for human error. Consider that under FSMA in the United States, food companies achieving more than $1 million annually must retain at least two years of safety records. Shippers and carriers must keep on file one year of transportation and training records.

Reduced food loss The prevention of shrink remains a powerful opportunity. Consider that up to 40% of food is lost between field and fork. Real-time visibility can promote product integrity by identifying out-of-range temperatures as they occur, rather than when the recorder is read after delivery. Better temperature control results in reduced shrink, more saleable product, and product with a longer shelf life at retail as well as in the home. Problems can emerge because of refrigeration equipment malfunction or human error. The cold chain is especially vulnerable at “hand-off” points where perishable products may be compromised by a reefer trailer’s doors being open too long, or product being loaded onto a trailer that has not been precooled.

hoopo’s tracking solution was recently implemented by a fresh meat supplier in the UK looking to prevent its loss of goods due to suspected exposure to high temperature as well as to improve logistics efficiencies. “hoopo is intriguing because it offers an end-to-end cost-effective solution,” Ittay said. “The customer is able to track supply location and conditions and to get real-time alerts. Additionally, the fact that the sensors are integrated into the pallet itself means there is no need for battery replacement or any maintenance. And it requires minimal infrastructure.”

Improved logistics efficiency and data analytics  IoT helps improve logistics operations in several ways. Through providing timely alerts to supply chain delays, bottlenecks or out-of-tolerance temperature variation, stakeholders will be able to more actively manage exceptions in order to optimize labor and facility planning as well as in taking steps as necessary to reduce retail out-of-stocks, and over time, reducing safety stock requirements.  

The complex and fast-moving nature of the logistics sector makes it an ideal candidate for IoT and data analytics. IoT sensor data helps feed data analysis, providing opportunities for better forecasting, freshness prediction, inventory management, route optimization, and labor management. Ultimately, IoT paves the way to fewer quality defects, greater efficiency, and better customer experience. Customer expectations for real-time temperature control will predictably escalate. At the recent Canadian Logistics Conference, one session participant commented that for some perishable goods customers, the provision of real-time visibility has become a service provider requirement. Customer pull-through, combined by the opportunity presented by affordable LPWA solutions such as hoopo, offers the potential for greater cold chain IoT adoption.

Reusable pallet containment systems, including pallet wraps, bands, straps and nets, can eliminate the cost of shrink wrap and stretch wrap, reduce solid waste, and provide better product protection.

If you feel dizzy from the rising cost of stretch wrap, or the awkward ergonomics of hand wrapping stretch film to a pallet load, you are not alone. And Workers Comp claims that can result from all those prone wrapping postures and the use of cutting knives. The good news is that reusable pallet wrappers can reduce or eliminate the need for plastic film. They are perfect for internal or intralogistics applications, as well as for regular shipments as long as the receiving destination cooperates in their return.

Avoiding plastic wrap is a good way to reduce environmental footprint. Wrapping the average pallet consumes about 135 linear feet or about a pound of plastic, which is either recycled or sent to the landfill.

Frank Gallucci of Amici Enterprises, the manufacturer of the Envirowrapper, says that his reusable wrapper helps customers better maximize pallet height while eliminating damage due to loads toppling over. In addition, pallets do not cling together as they do with stretch wrap. Using reusable wrap also translates into a reduction in stretch wrap disposal. Frank reports recent new customer wins domestically as well as in India and Malaysia. We previously reported on the use of reusable wrappers at Premier Organics. Amici, which has been selling the Envirowrapper since 1991, reports many happy repeat customers.

And while he isn’t selling “millions per year” as he first envisioned over 25 years ago, Galluci describes his business as global and steady. “We are still going strong,” he says. “And the beauty of our product is that we can make anything the customer wants. It is just material sewn with rods and buckles.”

P.C. Nets is a new, easy-to-use reusable pallet containment solution.

Envirowrapper has been used for many years by a major Canadian grocery retailer, as well as several breweries, mining companies and others. Gallucci is exploring the potential of the Envirowrapper to help make unit loads of more unstable product such as fresh produce compatible with warehouse automation where they currently have load containment concerns.

P.C. Nets is a recent entrant to the reusable load containment arena. It uses a net and cambuckle system to secure loads rather than a pallet wrap or pallet band.  “We have been working on developing and launching our P.C.Net for nearly two years,” said Gary Priestley, owner of Gaprie, the supplier of P.C. Nets. “We feel it is important to introduce environmentally friendly, reusable product to reduce plastic in our world.”

“Pallet Wrapz offers a solution to the high cost of stretch film and a reduction in damage to product on the pallets,” offers Matt Jacobs of Pallet Wrapz, a manufacturer of reusable pallet wrappers. He says that the most popular applications for his company are beverage, document storage and postal.

Jacobs is quick to point out additional benefits in terms of waste reduction, as well as with respect to mesh in the wrap which improves air flow through the product. “There is very little if any condensation buildup during the summer months with high humidity that can cause the food product on pallets to spoil,” he says. Both vendors report that their reusable wrappers are quicker and more ergonomically friendly to apply than manual stretch wrapping, while unwrapping does not prevent risk of knife cuts or strains associated with pulling off plastic film.

Reusable wrappers incorporate a plastic wrapper in conjunction with belts and Velcro or buckle systems to tighten them around the pallet. They can be customized to fit a range of palletized products from fresh produce to postal/printing, beverage, and frozen foods. Additionally, Amici offers an insulated wrapper for temperature-control products. Display pockets or other features can provide messaging on wrapped unit loads.

Another reusable option is the pallet rubber band. One pallet band or multiple bands can be applied to the load. They can also be used to hold corner boards in position while wrapping a pallet, for example. Read more about pallet bands here.

Pallet Wrapz in action. Reusable pallet wraps can be configured for various applications.

There are enormous opportunities for reusable wrappers, especially within facilities where products are palletized after production or container unloading, wrapped and stored, before being unwrapped in the same facility for further processing or distribution. In supply chain applications, attention to reusable wrapper control is important to ensuring the success of the program. Whether for use within a facility or for shipment to trading partners, a few simple steps can help ensure success:

• Determine where wrappers will be stored, to ensure ready access to staff who will be using them.
• Establish best practices for removing and rolling up wrappers, as well as storage and return procedures. It is important for employees at the receiving destination to know not to cut them off as they would with plastic film.
• Use a container to accumulate the rolled up wrappers. One grocery retailer uses an empty watermelon bin to gather them for return.
• Attention to minimizing dwell time and facilitating prompt return will help minimize the amount of wrappers required, as well as help eliminate the possibility of loss.

This article appeared in November 2015, updated in 2019.

Reusable Pallet Containment System Vendors

Amici Enterprises  (Envirowrapper)  888-507-5252

Pallet Wrapz Inc. 855-733-4880

P.C. Nets  t: +64 800 7233638 | +61 1800 723363 

REUSA-WRAPS 847-767-7747

Related Posts

• Reusable Pallet Containment Nets: an Interview with Gary Priestley of Gaprie
• Reusable Rubber Pallet Bands Help Stretch Your Load Containment Budget
• Reusable Wrap and Strap Systems Reduce the Need for Plastic Wrap
• Premier Organics Reduces Stretch Wrap Usage Through a Reusable Pallet Wrap Program
• Pallet Wrapz Profile
• Improve Your Stretch Wrap Recycling Recovery

IPP has committed more than £2.5 million to a new automated pallet inspection and repair service centre in Leicestershire which will initially process more than three million reusable pool pallets each year.

The company has signed a long-term lease on the premises on the Interlink Business Park in Bardon Hill, Coalville, near junction 22 of the M1, which is the biggest IPP service centre of its kind in Europe and reinforces our commitment to the circular economy.

The new automated system will process in excess of 700 pallets per hour – a capacity of an incredible six million each year.

IPP has entered into a long-term agreement with the James Jones Group, one of the largest timber processing groups in the UK, to operate the new state-of-the-art site, which will replace an existing facility at nearby Glenfield.

Phil Storer, UK director of IPP, said: “It’s fair to say 2018 surpassed our expectations in terms of growth and attracting new customers, so we’re in an excellent position to make a commitment on this scale.

“Sustainability has always been at the heart of what we do and this is further evidence of our commitment to increasing re-use and reducing waste, at every level of both of our businesses and the wider supply chain.

“We have invested in high-end equipment which means that ‘healthy’ pool pallets will be back on the road sooner and damaged ones will be efficiently and quickly repaired in double quick time.

“Having worked extensively with James Jones since we started the business in the UK some 14 years ago, we have come to know them as an established and high-quality supplier of pallets, timber and repair services, and we are confident the new service centre and its teams will be in very professional, safe and supportive hands.”

Gil Covey, executive chairman at the James Jones Group, said: “We have built a strong business and excellent reputation for service and quality in the field of pallet inspection and repair operations and we are delighted the close working long-term relationship we have developed with IPP has now led to James Jones taking over operations at the Bardon Hill site.

“This is a flagship operation on a new site with state-of-the-art machinery and we are confident that using our expertise will result in a great success for us, IPP and its customers.”

The Wharton School of the University of Pennsylvania, the Initiative for Global Environmental Leadership (IGEL) and CHEP have released a special report on a “transformative vision” to improve the environment by improving supply chains worldwide. “A Revolution in the Making: The Quest for Net Positive Supply Chains” explains what the net positive movement is, core strategies, progress made, and what that means for complex, global supply chains.

As the report illustrates, net positive supply chains do more than reducing a company’s carbon footprint: They restore and regenerate natural resources that the world and business need to thrive long-term. With that “net positive” result as a global goal, “A Revolution in the Making” begins with the concept that being less bad is no longer good enough.

“If you are an organization that depends upon natural resources or an organization where social cohesion is critical to the operation of your business, simply minimizing impacts isn’t going to sustain your operation long-term,” said Sally Uren, CEO of Forum for the Future. “Net positive is about rebuilding those assets you’re totally reliant on as a business.”

As a global non-profit organization, Forum for the Future created the Net Positive Group (NPG) in 2013 to address sustainability challenges and promote progress. Since then, it has come together with BSR and SHINE (Sustainability and Health Initiative for NetPositive Enterprise) to create the Net Positive Project, a global collaboration to create robust resources to define the net positive concept, and enable more companies to take up a net positive approach.

CHEP, part of Brambles Limited, promotes global collaboration as part of its contribution to a smarter, more sustainable future. The company is in a position to make an impact: Brambles helps move more goods to more people, in more places, than any other organization on earth.

“CHEP customers use our pallets over and over again, so our business model has always contributed to a more sustainable supply chain, increasing efficiencies while eliminating waste, CO₂ and reducing the use of natural resources,” said Juan Jose Freijo, global head of sustainability for Brambles. “We are always looking for ways to do even more. The net positive concepts outlined in this report are both reaffirming and encouraging. We continue looking for new ways to apply these principles to global supply chains.”

Those “new ways” may be found in four key areas highlighted in the report: materiality, transparency, systems thinking, and regeneration. John Pflueger, the principal environmental strategist at Dell Technologies, says regenerative thinking also relates to the importance of collaboration.

“Our biggest opportunity in the space is to look at how our customers use technology to solve environmental and social problems and help them do that more efficiently,” said Pflueger. “That was part of our epiphany back in 2012. If we don’t look at and understand everything that is happening in our value chain, we’re just giving lip service to the issue.”

Dell is one of several global companies cited in the special report. Other industry leaders involved in the net positive movement, and this research study, include Nike, IKEA, Levi Strauss & Co., and the Crown Estate, which manages the monarchy’s property in Great Britain. Unilever, another global giant making net positive progress, is highlighted in the report, along with its collaboration with the Ellen MacArthur Foundation. The foundation plays a key role in worldwide moves toward a circular economy, and net positive supply chains. The work, the foundation points out, must be done now.

“There’s a time pressure to all this,” said Joe Murphy, Circular Economy 100 Network (CE100) lead at the Ellen MacArthur Foundation. “We’re pushing the limits of planetary boundaries, so success is a necessity.”

“A Revolution in the Making: The Quest for Net Positive Supply Chains” includes four sections: Being Less Bad is No Longer Good Enough; Collaboration is Key to Net Positive Results; Four Principles for Creating Net Positive Supply Chains; and Net Positive Supply Chains: How far have we gone? How much further do we need to go? The special report is free to download here.

Gary Priestley

Reusable Packaging News recently reached out to Gary Priestley, the owner and director of Gaprie. In 2018, the company launched its latest product, P.C. Nets, an innovative and simple-to-use reusable pallet containment system which eliminates the need for plastic stretch or shrink wrap.

RPN: What’s important to know about Gaprie, the producer of P.C. Nets?

Priestley: Gaprie Ltd can help you get rid of single-use plastic shrink wrap for wrapping pallets and cut down on disposal costs. Established in 2008, Gaprie Ltd have been keeping workplaces and employees safe, helping you comply with legislation. We are a multi-faceted company specialising in the supply of safety nets, Elenet Safety Net systems for pallet racking and now our reusable pallet containment system, P.C.Nets.

Most recently, Gaprie have created a product that eliminates the need for single-use shrink wrap when transporting and storing goods at height, whilst keeping employee and customers safety in mind. This product comes at a perfect time as the world begins to take responsibility for the consumption of single-use plastic.

RPN: We are going to take a wild stab and guess that P.C. is not an abbreviation for “politically correct.” What is behind the P.C.?

Priestley: P.C.Net came from pallet containment, while we were tossing words/names around. We thought P.C.Net was a nice short, memorable name for our new product.

RPN: Why was it important for you to develop a reusable pallet containment product? When were they launched?

Priestley: We have been working on developing and launching our P.C.Net for nearly two years. We feel it is important to introduce environmentally friendly, reusable product to reduce plastic in our world.

Did you know that humans have made enough plastic since the Second World War to coat the entire world with stretch wrap? We at Gaprie are passionate about doing our part to save our planet.

RPN: How have P.C. Nets been received in the marketplace? What types of applications/supply chains have shown an interest in them?

Priestley: P.C.Nets have been received very well in the marketplace with companies such as Fonterra, DHL, supermarket D.C.s, We now supply to a wide range of industries, from coffee supplies, keeping large coffee sacks secure on pallets. Also for cheesemakers and keeping goods in chillers. Product movement around DCs is another use to avoid wrapping and re-wrapping.

RPN: What benefits do they offer compared to regular single-use wrap or strapping?

Priestley: With the cambuckle tie downs on the top, the P.C. Net can adjust up to 400mm in height so removing product is easy while keeping the rest of the products safe on the pallet Simply loosen tiedown, pull side of the net down the side and boxe(s) – take off one box or one layer from your pallet. Pull the net back into position, tighten straps and your goods are secured again–no need to re-wrap with more plastic. Costwise it only takes you having to re-wrap a pallet about 3-4 times before the PC net starts saving you money and they last for ages.

RPN: How are PC Nets applied and removed? How much space do they take up when not in use?-

Priestley: You simply pull down the P.C. Net over your goods. Secure to the bottom of the pallet with supplied snap hooks. Tighten the cambuckle tiedowns.  P.C. Nets do not take up much room when not in use. Simple follow install / removal instructions. They fold up to a small parcel. Store your spare P.C. Nets in a small area.

RPN: There are a lot of different sized pallets out there. How has P.C. Nets addressed the size issue? Is customised sizing available?

Priestley: P.C.Nets come in three pallet sizes – Euro ( 0.8m x 1.2m ), 1.0m x 1.2m & 1.2m x 1.2m. With three available heights – 1.4m, 1.0m, 0.500mm. They are all colour coded for ease of size recognition.  Custom sizes are available for independent business requirement. (MOQ may apply.)

RPN: Where do you currently ship, and what are your future plans for the product?

Priestley: We currently ship to N.Z., Australia, U.S.A. And about to start to U.K.

For more information, contact Jenny Steward
t: +64 800 7233638 | +61 1800 723363  
m: +64 27 510 8005  | 
e: jenny@gaprie.com
Visit: http://www.gaprie.com

LPR-  La Palette Rouge, the European Pallet Pooler, has opened its new depot generation in Lisbon. In accordance with their continuous improvement and customer proximity, this new depot includes high standard technics for pallets treatment.

LPR – La Palette Rouge in Portugal, raised the bar in terms of the quality and services it provides to domestic customers when it opened its new warehouse in Alverca in March 2018. The company’s newest covered warehouse in Portugal is physical proof of its concerted effort to improve service to the market by enhancing its operational capacity. With this first-hand processes, it gives a practical slant to the way the Alverca warehouse has increased quality standards beyond the admittedly high levels LPR already achieves, and to see why it has become the Group benchmark across Europe as far as the three elements of quality, service and innovation are concerned.

“Here at the Alverca covered warehouse, as is the case at our other collection centres, we have managed to offer a service of excellence to our clients and partners across the country. We’re very pleased that this depot has received recognition from the Group as its best in Europe and that this mark of distinction has motivated our colleagues from all countries where LPR has a presence to visit us so that they can see for themselves details of warehouse operations here – details which we believe can be replicated in other LPR markets in Europe,” said Hugo Silva, Supply Chain Manager, LPR Portugal.

According to François Gay, LPR European Supply Chain Director, “it was an excellent opportunity for knowledge sharing and networking. It is a source of great pride, but also a huge responsibility to know that we have raised the bar even higher now – something which I am sure the LPR Portugal team is going to try and do again”.

It is worth noting that at the Alverca collection depot, incoming pallets are subject to a rigorous inspection process: such thorough maintenance means that each component part is carefully examined, and replaced where necessary, then painted, and chamber-dried to ensure the performance expected from an LPR pallet at all times.

The Alverca depot has given LPR Portugal around 18,000 sq.m. of additional storage, the capacity to sort some 30,000 pallets per day, and the ability to accommodate greater throughput at short notice.

With 6,000 collection points and eight logistics warehouses ensuring the movement and maintenance of 1.5 million pallets in daily circulation in mainland Portugal and its islands, Madeira and the Azores, LPR Portugal markets itself as a specialist in consumer goods handling, with the ability to adapt continuously to customer requirements concerning straightforward pallet management as well as the management of pallet pooling services.

About LPR

La Palette Rouge, a division of Euro Pool Group, is a pallet-pooling company for manufacturers and distributors in the fast-moving consumer goods sector. LPR provides a full pallet service solution to its customers in the manufacturing, distribution and logistics sectors and their retail partners. http://www.lpr.eu

About Euro Pool Group

By using and sharing trays and pallets as circular logistic carriers, we help our customers to reduce their environmental impact and make their supply chain more efficient. Each and every day, producers, transporters, processing companies and retailers benefit from the advantages of our reusable pallets. In close collaboration with our stakeholders, we contribute to the transition towards a circular economy by sharing the benefits of our reusable packaging solutions across the supply chain”. www.europoolgroup.com

For the Oversees Distribution of automotive parts, DS Smith Plastics, Injected Moulded Products designed a solution to combine metal cages with foldable containers. The Ultrabase transit packaging pallet with AkyPak® Sleeve reduces transportation costs and CO² emissions.

THE Challenge

For the distribution of different spare parts, a leading German car manufacturer used metal cages. The metal cages are robust enough to carry the heavy parts but difficult to handle for return transit. For the storage and overseas shipment of lighter spare parts, they contacted DS Smith Plastics to design a lighter, foldable container that is compatible with the metal cages. The objective was to have the first layer available for metal cages at the bottom for the heavy parts, and the second layer of foldable containers with four feet, to be stacked on the metal cages for the lighter parts. Because the plastic base is stacked on only 4 corner-supports of the metal cage, the base needs to be ultra-strong and rigid.

The Approach

The Rigid Plastics’ Design Department in Bilzen, Belgium combined two different techniques: A lightweight extruded plastics AkyPak sleeve with a strong Injection moulded pallet underneath. The pallet is strong enough to carry the weight with only four feet at the side.

The sleeve is fully connected to the base through 4 lips, allowing assembly and disassembly of the box in a few seconds. Made with AkyBoard® polypropylene plastic sheets, the sleeve is durable, lightweight and recyclable.

Combined with a pallet and a lid, the AkyPak sleeve is ideal for creating a light and robust container. The pallet has anti-slip features for safe fork-lift handling.  

The Result

The foldable container fits perfectly on the metal cages. The fixation of the sleeve on the pallet is an easy to use system. When empty, the sleeve is folded in between the lid and pallet and shipped flat, reducing the cost associated with return logistics and transport and CO² emissions significantly. The returnable containers are 100% recyclable at the end of their useful life.

Source: DS Smith

This article has been updated with the most recent pallet industry statistics available.

Also read: Economic Impact Study Shows Wood Packaging Industry Supports 173,000 Jobs in the United States

New wooden pallet industry statistics have been made available, resulting from cooperative research projects involving NWPCA, Virginia Tech and USDA Forest Service. One of the projects looked at wood pallet disposal at landfill locations and pallet recycling rates. The other study related to pallet industry statistics.

The research was based on a survey of wood pallet manufacturers and recyclers, as well as pallet brokers, with reference to the 2016 fiscal year.

Wood Pallet Production and Sizes

• Overall annual industry production in 2016 was estimated at 849 million wood pallets (508 million new and 341 million recycled). This output represents an overall 14% (22% increase for new pallets and 5% for recycled) increase compared to 2011 results – previously the most recent data available.
• Lumber consumption in pallet production is estimated to range between 4.1 and 5 billion board feet in 2016, with a ratio of 45% hardwood and 55% softwood.  According to researchers, pallet production uses 43% of hardwood and 15% of softwood produced in the U.S.
• The dominant size remains the 48×40 pallet, representing 35% of pallets produced. Researchers noted that the gap between 48×40 category and the “other” category is closing over time. The 48×40 has increased from 24% in 2011 to 35% in 2016, while “other” has fallen from 60% to 39%. “When compared to prior studies, the difference between these two categories is smaller, which suggests that the industry may be becoming more standardized than it has in the past,” they wrote. Other popular sizes included 48×48, 42×42, 48×45, 40×48 and 37×37. Click to read our article on standard pallet sizes.

Slides from the research shown below sourced at www.palletcentral.com.

UK Pallet Statistics

April 9, 2018. As reported in this article about the UK pallet industry, an estimated 42.5 million new pallets were produced in 2016, up 5.6% compared with 2015; in the same period, an estimated 41.4 million pallets were repaired, up 6.2% on 2015. Total UK turnover from manufacturing pallets was £268.1 million; while turnover for repairing pallets was £90.2m.

U.S. Pallet Industry Statistics Presented at Western Pallet Association Annual Meeting (2015 article)

“You may have heard reference to there being 2 billion pallets in the U.S.,” Philip Araman told the audience at this year’s (2015) Western Pallet Association Annual Meeting. “That number comes from us.”

Indeed, the reference to the 2 billion pallets estimated to populate the U.S. pallet pool seems to find its way into most every pallet industry business case and analysis as ambitious projections about potential market capture are made for new pallet products and services poised to transform the market…but is it accurate? I asked Phil, and he assured me that the 2 billion pallet estimate is relatively accurate, based on their research, although that research has never been published.

Phil Araman, U.S. Forest Service

Phil is a researcher for the U.S. Forest Service in Blacksburg, Virginia. The group works closely with Virginia Tech.

“We (US Forest Service/VA Tech) have many years of working with your (pallet) industry,” Phil told the group. Their research involves monitoring new pallet manufacturing, pallet recovery/repair/reuse/recycling, as well as waste pallets to landfills. Additionally, the group performs research to support pallet design software PDS and Best Pallet to make better pallets.

Based on surveys and estimates, his research group has generated the following numbers with respect to the U.S. pallet industry:

• Could be over 2 billion pallets in service
• 416 million new pallets made in 2011
• 43 out of every 100 pallets purchased are recovered pallets
• 474 million pallets recovered in 2011
  • 326 million of those returned as pallets
  • The remaining 148 million were recycled to other products
• Millions still end up in landfills every year
  • About 1/4th of these are recycled at landfills

Here are some of Phil’s noteworthy visuals from his presentation.

New Wood Pallet Production

As the graph at right shows, new wood pallet production has been rather flat, registering 416 million units in 2011.

Recovered Pallet Production

Meanwhile, recovered pallet production has grown dramatically in recent decades as shown by the graph at left below.

Overlay the new pallet production with recovered pallet sales, and you can see at lower right how the recovered pallet sales have rapidly closed the gap on new pallets. This slide, Phil said in his presentation, is very powerful.

So what does it all mean? Given that wood pallets still command over 90 percent of the market, if we can believe that number, it gives us a sense of the overall market. The growth of recovered wood pallet sales indicates their acceptance by the market as the quality of used pallet offerings has continued to improve, providing a better value proposition for many users.

Direct value of pallet industry output exceeded $10.7 billion, the highest level of output since 2007.

Source: NWPCA

A recent study from The National Wooden Pallet & Container Association (NWPCA) found that the wooden pallet and container manufacturing industry has a direct or indirect impact on more than 173,000 jobs and generates a total economic impact of US$31 billion in economic activity.  The study titled “Economic Analysis of the U.S. Wooden Pallet and Container Industry” illustrates the far-reaching positive effects of the industry.

“The wood packaging industry is more than just wood and nails. We are tightly interwoven in urban and rural communities, working with other industries to supply materials, parts, as well as financial, IP and logistics, both nationally and globally,” said Larry Howell, NWPCA Chair and President of Cottondale Wood Products based in Alabama. “Our products truly move the world by bringing goods to all homes and businesses.”

Key Findings

• Direct or indirect impact on more than 173,000 jobs and generates an economic impact of US$31 billion. Total impacts of $35.1 billion to the U.S. economy and employment of 197,300 jobs
• Labor compensation reached $3 billion; robust growth has outpaced job gains, indicating higher average wages
• Direct output exceeded $10.7 billion, the highest level of output since 2007
• Production levels increased 4% per year from 2009-2016, outpacing the overall economy.

According to NWPCA President/CEO Brent McClendon, “The research was undertaken to highlight the impressive impact that our industry has in this very complex value chain. We now have the critical data that shows the continued expansion of the industry and has the potential to inform policies that create jobs and support local communities.  We’re proud of the role wood packaging plays for economic growth.”

The research was funded by The Pallet Foundation and conducted with the National Association of Manufacturers (NAM). The full report is available here.

See other industry statistics: Pallet Statistics: Pallet Sizes Becoming More Standardized in the U.S. Market

ABOUT THE CENTER FOR MANUFACTURING RESEARCH 
The Center for Manufacturing Research is part of The Manufacturing Institute, driving an agenda to research and support manufacturing excellence, innovation and talent, and deliver solutions to make manufacturers in America globally competitive. In this role, the Center continues to document the importance of manufacturing in the economy. Learn more about the Center for Manufacturing Research.

ABOUT THE NATIONAL WOODEN PALLET & CONTAINER ASSOCIATION
The National Wooden Pallet & Container Association (NWPCA) is the largest organization of wood packaging professionals in the world, with more than 670 company members in 28 countries who manufacture, repair and distribute pallets and wood packaging in unit-load solutions, or who supply products and services to the industry. Learn more about NWPCA

ABOUT THE PALLET FOUNDATION
Formed in 1996, The Pallet Foundation, a 501(c) 3 charitable foundation, supports research, education/trainin, and safety in the wood packaging industry while promoting the industry to end-user markets. Learn more about The Pallet Foundation.

Pallet News Briefs 2019

Saudi Pallet Manufacturing Company Signs a $90 Million Memo of Understanding for Paxxal Plastic Pallet Production and Logistics Partnership with Saudi Arabian Basic Industries Corporation (SABIC)

Noblesville, IN January 29, 2019– Saudi Pallet Manufacturing Company (SPMC), a multi-use plastic pallet manufacturer utilizing Paxxal Inc.’s proprietary plastic pallet technology and design, has signed a $90 million memorandum of understanding (MoU) with SABIC (Saudi Arabian Basic Industries Corporation). Under the MoU, SPMC will partner with SABIC to manufacture Paxxal pallets for export and develop supply chain initiatives for the local market.

The document was signed during the launch event of the National Industrial Development and Logistics Program (NIDLP) held January 28th, 2019 in Riyadh, Saudi Arabia.

Under the auspices of His Royal Highness, the Crown Prince of Saudi Arabia, Prince Mohammed bin Salman bin Abdulaziz Al Saud, NIDLP is the Kingdom’s largest and most impactful Saudi Vision 2030 Realization Program, which is aimed at transforming the Kingdom into a leading industrial powerhouse and a global logistics hub. The cooperation agreement between SPMC and SABIC exemplifies the joint partnership between the Kingdom of Saudi Arabia’s public and private sectors to utilize locally sourced technology, increase local employment, utilize local resources (such as SABIC’s plastic), increase local GDP and much more.

Oar Shawaf, Chairman of SPMC, and Ben Stoller, CEO of Paxxal, were in attendance to sign the agreement. The MoU comes as a result of SABIC’s strategic initiatives to develop the localization of goods and services and enhance Saudi capabilities to meet the objectives of Saudi Vision 2030.

“We are proud to sign this MoU with SABIC and we highly appreciate SABIC’s efforts and vision to partner with a locally sourced technology company,” says Shawaf.

Stoller adds; “SPMC and Paxxal are honored to build on our partnership with SABIC which will enhance the local capabilities and develop the Saudi workforce, clearly reflecting the objectives of the country Vision 2030 initiative.”

Millwood Promotes Internally for Director of Human Resources

Business Growth Continues to Expand Departments

Vienna, Ohio, January 2019 – Tremendous growth at Millwood, Inc. in the last thirteen years has led to expansion within its Human Resources department. In 2006, Millwood employed 1,003 people. Today, that number is close to 1,700.

Courtney Russell, who was hired in August as a regional human resources manager, was promoted to director of human resources in December and will work closely with Executive Director of Human Resources/Chaplain Ministries Frank Hyatt to continue to cultivate the organizational culture and ensure Millwood’s four Pillars are expressed through the HR processes and functions.

Russell will also manage the human resources team members at other locations across the country. Under her leadership, the human resources team will continue to grow as needed to support all of Millwood’s 30 locations nationwide.

“I am excited for the opportunity to help Millwood, Inc. continue to grow and thrive as a business and employer,” Russell said. “I look forward to helping ensure our Pillars are woven into all we do as an employer and felt by our employees on all levels.”

Russell has more than 10 years of human resources experience and previously worked in the government sector. She is currently pursuing a Master of Science in HR Management (MSHRM) and is certified as a SHRM Certified Professional and a PHR (Professional in Human Resources).

“Courtney is more than qualified and capable of leading the HR team at Millwood into the future as we continue to grow and evolve as one of the leading pallet suppliers in the United States,” Hyatt said.

Rehrig Pacific’s FM Approved Fire-Retardant Pallets Exceed Expectations in Rigorous Testing

Rehrig Pacific has announced the release of a new, highly durable, FM approved fire-retardant pallet, it reported in a press release. Virginia Tech University’s Center for Packaging and Unit Load Design put Rehrig Pacific’s new fire-retardant pallets through an exhaustive battery of tests designed to simulate real-world warehouse and supply chain conditions. Rehrig’s pallets survived as many as 200 cycles. The company stated that this durability accomplishment is a first for flame-retardant pallets on the market.

“This is just one more way we can serve Rehrig Pacific’s customers,” said Adam Gurga, National Manager of Rehrig’s Material Handling & Bulk Solutions group. “Distributors and manufacturers shouldn’t have to choose between durability and safety. From the beginning, we’ve designed our FM approved, fire retardant pallets to be strong, durable, and long-lasting so that Rehrig Pacific customers deliver the strongest long-term ROI possible for their supply chain operations.”

Rehrig Pacific’s pallets are non-halogenated fire retardant (NHFR), which sets them apart from much of their competition, it noted in the release. “It’s been a standard assumption in the industry that fire-retardant pallets are less durable than their counterparts without the FR designation, forcing suppliers and managers to choose between the short-term solution of wood and plastic’s sustainability, longevity, and safety. However, with Rehrig Pacific’s new NHFR technology, an FM approved fire-retardant option is now available that currently exceeds any other offerings for fire retardant pallets on the market.”

Virginia Tech University’s Center FasTrack testing program used ten of the new 48×40 NHFR GMA Series pallets and put them through a rigorous durability test, simulating handling in a warehouse environment. The results from these tests exceeded those of competitors and highlighted the superior engineering behind Rehrig products.

Composite wood pallet blocks are popular in Europe. Composite blocks are shown being fed into an automated pallet nailing system, as seen on the FEFPEB 2017 tour in the Netherlands (PKF/Post Pallets)

Litco International intends to begin offering engineered wood pallet blocks in the United States later this year. The blocks will help pallet makers reduce the amount of whitewood and labor to produce block pallets. The company will invest in extrusion lines to facilitate production of the new product line branded as Inca Engineered Extruded Wood Blocks.

Litco is reaching out to pallet companies to engage in a dialogue to better understand block size and volume needs. As a domestic producer, it will eliminate the time and cost associated with shipments from Europe. Among the sizes currently considered are 3 in. x 3 in. and 3.5 in. x 3.5 inches, in various lengths.

A point of performance differentiation from other composite wood blocks is the company intends to produce denser pallet blocks. The blocks will exceed 0.6 gram per cubic centimeter, a block density typically available from overseas sources. The higher density will reduce flaking, improve durability, and nail retention issues experienced with competing products.

Inquiries have been gradually growing over the last few years, according to Gary Sharon, executive vice president for Litco, He had been receiving calls about supplying pallet blocks. However, — “production didn’t make sense in terms of price or volume to compression mold them in the same process, the process used to produce Litco’s industry-leading INCA Engineered Molded Wood pallets, and core plugs.  

With more inquiries fielded in 2018, Sharon said that there is now enough interest to justify investment in extrusion lines for pallet blocks and potentially other extruded products. “The blocks are a natural fit for us, as we have the infrastructure to process the fiber. It is the same for compression molding as it is for extruding.” “The only investments required are the extruding lines and related equipment Completion of the project is anticipated in the 4th quarter of 2019.

Engineered wood blocks eliminate some issues associated with timber blocks, explained Page Clayton, Litco’s sales engineer, a graduate of Virginia Tech. “Wood has a different strength property in each direction,” he said. “So being able to reorient the wood grain or wood fiber in a more uniform configuration allows us to improve select mechanical properties.

“The increased density of the Engineered Extruded Wood  Block provides more impact resistance,” Clayton continued. “In addition, the denser material provides better fastener retention. This is because fasteners’ helixes and flutes have more material to hold onto.”

Engineered wood blocks offer many other benefits. Because they come “ready for assembly”, there is no waste, and additional labor or equipment is required to size them. Dimensional accuracy and consistent quality also facilitate automated assembly.

In addition, the low moisture content means there is no drying or mold treatment needed. Blocks do not check or crack due to shrinkage from drying. The moisture content of Litco’s Engineered Extruded Wood block is 7% at the time of manufacture and is ISPM 15 compliant.

Sustainability is another advantage. Damaged logs, wood waste, and other wood by-products are the materials of choice for Engineered Extruded Wood blocks, making them a positive choice for a circular economy. The component materials are easily reusable for the end user as mulch, absorbents, and animal bedding.

To contact Litco about its composite pallet block initiative, call 877-431-3308 or email Page Clayton at page@litco.com.

Four years since the original launch of its multi-trip pallet box – the Trip Box – Goplasticpallets.com has introduced a new, improved version to its range, which promises to deliver superior strength, better security and enhanced performance for large volume goods handling and distribution.

Designed by Belgium-based plastic pallet and pallet box manufacturer Smart-Flow, the new Go Trip Box 1208 Ultimate 3R boasts a stronger, more robust pallet base; a lockable pallet base and lid to secure the pallet sleeve in place; a durable, injection moulded lid – in contrast to the original thermoformed lid; and the option to choose from different sleeve thicknesses.

In addition, the pallet base can be reinforced with three metal bars to accommodate heavy loads in excess of 500kg, increasing the racking capacity of the pallet box to 900kg.

Jim Hardisty, Managing Director for Goplasticpallets.com, said: “We truly value customer feedback on the plastic pallets and pallet boxes we supply.  The launch of our new, improved Trip Box demonstrates that we not only listen to our customers but share their experiences with our manufacturing partners, who invest a great deal in R&D to enhance existing products and develop new ones.”

Quick and easy to assemble and disassemble, the new, improved Go Trip Box 1208 Ultimate 3R is comprised of three components – a recyclable plastic pallet base which measures 1200mm (L) x 800mm (W), a sturdy but lightweight plastic sleeve and a durable plastic lid.

When assembled the new Trip Box has a storage capacity of 516 litres and can be stacked and stored safely up to four boxes high with a maximum load of 1600kg. When not in use the multi-use pallet box folds virtually flat – the plastic sleeve slots into a groove around the pallet edge and the lid locates easily on top. In folded-down mode, the Go Trip Box 1208 Ultimate 3R can be stacked up to eight boxes high, saving considerable space in storage as well as reduce costs on return journey trips.

Unlike other sleeve pack systems on the market, both the pallet base and lid are injection moulded to offer superior strength and rigidity, meaning the new, improved Trip Box can be used repeatedly, across multiple trips to and from the warehouse. Where most other systems traditionally come on nine feet, our multi-use pallet box comes on three skids making it suitable for applications where racking is required.

Just some of the applications the Trip Box is currently being used for include car parts, electronic components, retail goods, and pharmaceuticals.

The pallet sleeve can be custom made to different heights to meet customers’ specifications and is available in a variety of thicknesses. The sleeve is also available with a drop down door for easy access loading and unloading goods.

The multi-use pallet box comes as standard with a black pallet base and lid and a grey sleeve, however for large orders other colours are available – like those seen in these photos. Other personalisation options include the addition of label holders and branding with a company name or logo.

New perspectives and a broader service with a well-established team

The load carrier expert PAKi Logistics will continue the business of vPOOL pooling and logistics division on February 1st, 2019. The acquisition guarantees the continuation of existing business relationships and offers a wider range of products and services to customers.

The pooling expert PAKi, part of the Dutch Faber Halbertsma Group, announced today that it has acquired the pooling business of the German vPOOL group. The new company will operate under the name vPOOL Logistics GmbH and will continue to operate the load carrier accounts of customers and partners. All balances will be retained. Employees of the pooling activity will be transferred to the new company and will remain at the location in Wörnitz. The current vPOOL-team will continue to offer a reliable and flexible service to their customers.

Christian Agasse, Managing Director of PAKi Logistics, points out: “The pooling division of vPOOL for E meat boxes and H1 (hygienic) pallets is an ideal addition to our product portfolio, with which we can expand and strengthen our position in the meat processing industry and benefit from high synergy effects in sales. We are delighted to welcome a highly qualified and experienced team to the PAKi family. It not only brings many years of premium customer care and a great deal of know-how, but it also fits in perfectly with our corporate philosophy, based on high standards of quality and sustainability”.

“The takeover is good news in every respect,” says Heiko Dagenbach, Managing Director of vPOOL. “A strong partner like PAKi does not only grant our customers access to a more comprehensive range of products and services than before, but also to a Europe-wide logistics network. We are pleased that our new partnership has also secured the existing jobs and that our employees have a long-term perspective in a financially strong company”.

The transaction will be effective on February 1st, 2019. Heiko Dagenbach will continue as Managing Director of the new vPOOL.

About the vPOOL Logistics GmbH

vPOOL Logistics GmbH is a logistic service provider in the field returnable transport packaging like E meat boxes and H1 plastic pallets. Located in Wörnitz in the south of Germany, vPOOL offers logistics services for the food industry throughout Europe and can look back on more than 20 years of experience with its 45 employees. The range of services includes pooling, rental, and trade of standard and exchangeable load carriers. In addition, vPOOL provides network optimisation of the logistics flows and processes of its customers. The online platform “poolbook” is the latest digital add-on to the vPOOL service portfolio.

Pallet collars are completely on trend with the predictions for 2019 industrial packaging. It is not too difficult to figure out what is going to be trending when it comes to packaging in 2019 but many businesses do not realize how pallet collars can help to be on the forefront of those trends.

There is a Tremendous Push for Change in Packaging

There is a push to reduce, reuse, recycle and the push is coming harder than ever. This push will shape the trends in packaging for 2019. Regulatory agencies around the globe are stepping up their laws when it comes to packaging and consumers are far savvier today than ever when it comes to paying attention to what the entire supply chain is doing about packaging. Pallet collars fit into the new landscape of packaging nicely.

Packaging over the last few years has become a part of a blame game of sorts. The public blames governments for the excess amount of waste that is generated from packaging, while the government blames industries. Ultimately, everyone is demanding change.

2019 is going to be all about change. Either the regulatory bodies will require stricter than ever guidelines, or the consumers will force industries to make those changes by avoiding doing business with industries that do not heed the call of the demand for change.

Moving in the right direction starts with having the right tools.

What Are the Benefits of Adding Pallet Collars to Your Packaging?

Pallet collars offer great solutions for business that are looking for that “what’s in it for me?” value. Transforming pallets into reusable, resizable, no waste conveyances is what wooden collars have to offer.

They hit on all the major trends in packaging for 2019. They greatly curtail waste, they are reusable, and they are fully recyclable when they reach the end of their useful lifespan. It seems like the perfect solution and there is more:

• Pallet collars keep costs down
• Pallet collars add the flexible packaging options that you need
• They are easy to store
• They are easy to assemble
• They reduce risk to goods and labor

The list is extensive when it comes to the benefits that can be realized, not just to get in on the new packaging trends but for your overall warehouse activity. Anything that will cost less and wind up delivering better results should always be investigated as a potential worthy change.

Let’s Take a Closer Look

Getting familiar with this “add on” to your pallets can reveal exactly how they can be used to improve your supply chain, reduce waste and risk and better protect your goods. First let’s look at what they are, then we will look at how flexible they can be and finally we will quickly review how they can meet both regulatory and consumer expectations.

What are they? Many people describe them as a replacement for a wooden box, but they are much more. Collars come in standard sizes, they can be either 4 boards or 6 boards that are hinged together on all sides. The depth can be adjusted by simply removing or adding collars that easily stack. They do not require any tools to assemble. The collar is used to prevent spillage of goods, unauthorized entry into the contents of the pallet and to protect the goods.

The flexibility comes in because collars can be stacked together to create a deeper box based on the size of the contents. This gives you a great deal of control not only in the warehouse but during transportation. Traditional wooden boxes do not allow for flexibility when it comes to depth. When you add wooden collars to a pallet, you get the durability of a wooden crate but the flexibility of other wrapping materials.  They can withstand a great deal of weight. Of course, the ability to control the size of the container means you no longer must pay to ship “air” and that your goods are better protected against rough shipping situations.

How is this going to help to meet the new trends in 2019? You will use less packaging when you have a packaging solution that can be custom fit to your specific needs. This, of course, cuts down on waste in the warehouse and for the end user. Wooden collars can be reused repeatedly, which means you buy less packaging, it also means that you need less space to manage your packaging. They are fully recyclable which means they do not wind up in the landfill.

Even if you are not all about ensuring your warehouse is on trend. Pallet collars should still be something you are considering. They help to cut costs and they reduce risk. Reusable packaging simply makes better sense for your bottom line. Of course, the fact that there are no tools required to manage pallet collars and a single person can construct them on the spot means you can expect less handling injuries as well and less labor wasting time to construct crates.

The fallout benefit is that your company develops a reputation as being a company that is concerned with making choices that are good for the environment. It is a win-win situation. Consumers will give your brand a thumbs up as will regulators. You will be ahead of the reduce, recycle, reuse trend!

Making a simple choice to redesign your packaging to something that is safer, stronger (than shrink wrap) and cost-effective can be the catalyst to becoming the brand that cares.

Can It Be True?

Is there a solution that will work across the board from many different industries to get on trend with the changes for 2019? The answer seems so simple, but it is true. Adding pallet collars to your packaging materials can deliver the solution. Ultimately this solution requires a good look.

2019 may teach your group that being on trend sometimes means doing business smarter by choosing simple options and reaping the rewards.

Source: Kronus

ISPM 15 Regulatory, Inspection and Compliance News for the International Shipment of Solid Wood Packaging Material

February 4, 2019

Timber Products Inspection, Inc. (TP) has announced that effective January 31, 2019, they have entered into an agreement to acquire Stafford Inspection & Consulting Services, LLC. (Stafford) which is currently headquartered in Orlando, Florida. Both TP and Stafford have been providing professional inspection and certification services for over 50 years and are well recognized in the Industry. This acquisition aligns with TP’s objective to strengthen their position in the lumber, export wood packaging, truss and log home markets which are their core businesses.

Jeremy Williams, Controller of TP commented “The management team at Stafford has always been committed to providing dependable services and has built their reputation as a solid company based on integrity. These values are in direct alignment with the values that TP has delivered to their clients. Our hope is that this acquisition will provide growth opportunities for both Stafford and TP employees”.

Stafford will operate as a subsidiary of WRD, TP’s parent company, and be headquartered out of Conyers, Georgia.

November 26, 2017

Canada’s “DRACONIAN” Rules for non-compliant wood

Milgram cautions in a recent article that evidence of insects at a Canadian port of entry may require the container be fumigated and exported back to the country of origin. There is a catch, however. “The CBSA/CFIA requires the container to be fumigated with methyl bromide before it is exported,” the article notes. “And right now, there does not seem to be any methyl bromide in Canada.”

The story reports that one Canadian International Freight Forwarders Association (CIFFA) member has had a groupage container stuck at the Port of Halifax since October 6th. It reportedly took Canada Border Services Agency (CBSA) 10 days to conduct the examination before issuing the fumigation and export order.  The forwarder was then advised that the required methyl bromide may be imported only around mid-December. “By that time, the container should have been reported to Queen’s Warehouse (after 40 days in the country) and the demurrage charges will probably be worth more than the container contents,” the article notes.

The container was fumigated in India prior to export and was accompanied by a fumigation certificate. “Fumigation is not acceptable for importation to Canada. So, tell your agents to stop having Canadian-destined containers fumigated – it is a waste of time and money. Do instruct your agents to load only ISPM 15 compliant and marked wood packaging,” Milgram advises.

November 18, 2017

The North American Sea Container Initiative

To protect North American agriculture, forestry and natural resources against the introduction of invasive pests and diseases, the Canadian Food Inspection Agency (CFIA) and the United States Department of Agriculture (USDA) have worked with U.S. and Canadian border protection agencies, shippers and global shipping companies to develop the following guidance for cleaning and inspecting sea containers. This guidance complements the International Maritime Organization’s Code of Practice for Packing Cargo Transport Units (CTU Code). Everyone involved in moving containers has an opportunity to protect our crops, forests, and livestock by ensuring that containers and their cargo are free from unwanted plants, plant products, insects, snails, soil, animals and animal droppings. Read more.

November 17, 2017.

EPAL Launches ISPM 15 Compliant CP Pallet Certification Program

With the maxim “the chemistry is right”, the European Pallet Association e.V. (EPAL) is launching the independently quality-assured EPAL CP pallets at its press conference in Düsseldorf. This expands EPAL’s existing and highly successful load carrier portfolio with nine more quality-assured wooden load carriers in order to play a supporting role in the chemicals industry and elsewhere. All EPAL CP pallets are treated in compliance with ISPM 15 standard and suitable for the international movement of goods.

Read more.

November 2017

Timber Products Inspection Clarifies Requirements for Wood Packaging Material Entering Canada from the U.S.

If you need guidance on solid wood packaging requirements for entry from the U.S. into Canada, including wood pallets, TP recently outlined the requirements in its November 2017 newsletter. Timber Products Inspection (TP) is an independent, third party wood products inspection, testing and consulting company. TP’s corporate office is located in Conyers, GA, with an additional facility in Vancouver, Washington. The company provides professional forest inspection services to most of the wood products industry.

Canada Bound WPM Review   

In 2005, an exemption was established for the movement of wood packaging material (WPM) from the U.S. to Canada.  In speaking with Tyrone Jones, USDA Director of Forest Products, this standard works conversely between the two countries and for review, the exemption specifies in part:

• All WPM entering or transiting Canada except wood of U.S. origin entering from the U.S., must be heat treated or fumigated and be marked with an approved logo (IPPC Mark) certifying that it has been treated.
• Shipments containing non-compliant WPM will not be allowed to enter Canada.
• This exemption applies only to the “Continental United States”.  Wood from Hawaii and U.S. territories is not included in the exemption.

The exemption applies to both WPM shipping as a commodity and WPM bearing product.  In some situations, a declaration is required to document the origin of the wood used to build the WPM as being sourced from the Continental United States.

A declaration is not required on:

• ISPM 15 conforming WPM with all material having proper IPPC marks (U.S. or foreign).

A declaration is required on:

• WPM constructed from wood of Continental U.S. origin with no marks.
• ISPM 15 conforming WPM with foreign IPPC markings shipped along with unmarked WPM constructed from wood of Continental U.S. origin.  (Without this declaration, the unmarked pallets will be considered not of U.S. origin and denied entry into Canada.)

On Repaired WPM:

• Repaired WPM not of U.S. origin will need to be treated and IPPC marked to legally gain entry into Canada from the U.S.
• Companies trying to send repaired WPM with obliteration marks into Canada will need to have enough knowledge of the wood origin to convince Canadian Customs it is U.S. or Canadian sourced. Since this will be almost impossible with properly obliterated marks, it will be best to treat and remark the WPM.
• Repaired and untreated WPM with obliterated marks attempting entry into Canada could be considered a sign of fraud by Canadian Customs even with a declaration and entry may be denied.

It is important that facilities and their customers are aware of this standard in order to avoid costly delays at the border and potential loss of business.

For more information, visit http://www.tpinspection.com/.

October 2017

ISPM 15 Announcement by U.S. CBP Sends Waves Through Industry

An announcement by CBP led to numerous communications and substantial confusion about the impending changes. For cross-border trade between Canada and the U.S., domestically sourced timber is still exempt.

ISPM 15 Requirements Have Not Changed, But Enforcement Is Tightening

An announcement by the U.S. Customs and Border Protection (CBP) in late September 2017 resulted in a scramble as brokers and shippers sought to understand and communicate the changes to their customers and trading partners.

The main point is that the U.S. is stepping up enforcement of ISPM 15 regarding solid wood packaging entering the U.S. Previously, five violations in a calendar year were typically allowed before penalties were assessed, with an annual reset. Now penalties may be issued at the first violation.

ISPM 15 is an established program, implemented several years ago to help prevent the transfer of harmful timber pests internationally. Nonexempt wood packaging material (WPM) imported into the United States must have been treated at approved facilities and display a visible, legible, and permanent mark certifying treatment, preferably in at least 2 sides of the article. The mark must be approved under the International Plant Protection Convention (IPPC) in its International Standards of Phytosanitary Measures (ISPM 15) Regulation of wood packaging material in international trade (https://www.ippc.int/en/publications/640/).

The announcement (shown later in this article) did not acknowledge the exemption for Canada when lumber of Canadian origin is used in solid wood packaging and pallets, prompting concern that the Canadian exemption had been removed.

To clarify, ISPM 15 requirements for import into the U.S. have not changed. For exports from Canada, wood of Canadian origin does not require treatment or ISPM-15 stamp, although the Canadian origin should be noted on the customs declaration. For wood not originating in Canada, the ISPM 15 stamp is required. For other countries, as per present practice, compliance with ISPM 15 is required.

Watch Out for Common Mistakes

The reduced tolerance for violations is a signal for shippers to fully comply with ISPM 15. Brian Isard, the general manager of the Canadian Wood Pallet and Container Association, urges supply chain participants to “not take any shortcuts”. Common mistakes which lead to trouble for shipment to U.S. and other international destinations include stamps that are not clearly legible, the use of non-compliant, non-stamped blocking and bracing, or the use of dunnage stamped material for crating.
Brokers and others are advising shippers to purchase solid wood packaging and pallets from ISPM 15 certified providers in order to avoid problems at the port of entry. “People who are not using proper timber – watch out,” Isard cautioned.

The announcement marks a tightening of enforcement rather than a change of ISPM 15 requirements.

Resources

USDA clarifies the exemption for timber of Canadian origin in this recent update. https://www.aphis.usda.gov/aphis/ourfocus/planthealth/import-information/wood-packaging-material

Isard notes that further information relevant to Canada (Table 3-167, page 202) and other countries can be found in the APHIS Miscellaneous and Processed Products Import Manual.

UPDATED WOOD PACKAGING MATERIAL PENALTY GUIDANCE

9/26/2017

Trade Notice

Issuance of Penalties as a Consequence of Wood Packaging Material
Violations

Pursuant to U.S. Code of Federal Regulations 7 CFR § 319.40-3 (effective since September 16, 2005), non-exempt wood packaging material (WPM) imported into the United States must have been treated at approved facilities at places of origin to kill harmful timber pests that may be present.  The WPM must display a visible, legible, and permanent mark certifying treatment, preferably in at least 2 sides of the article.  The mark must be approved under the International Plant Protection Convention (IPPC) in its International Standards of Phytosanitary Measures (ISPM 15) Regulation of wood packaging material in international trade (https://www.ippc.int/en/publications/640/).  Any WPM from foreign origin found to be lacking appropriate IPPC-compliant markings or found to be infested with a timber pest is considered not properly treated to kill timber pests and in violation of the regulation.  The responsible party (importer, carrier, or bonded custodian) for the violative WPM must adhere to the Emergency Action Notification stipulations and be responsible for any costs or charges associated with disposition.

The purpose of the WPM requirement is to prevent the introduction of exotic timber pests.  Introduced exotic pests lack the natural environmental controls that may be found in their respective native lands to keep them in check.  When exotic timber pests go unchecked they can cause widespread tree mortality with detrimental ecological impacts.  Additionally, there may be economic impact for the lumber, fruit, and nut industries, as well as the loss of horticultural trees.  Eradication efforts can prove to be very expensive and ineffective once an exotic pest is introduced, as is the case with the Emerald Ash Borer which was introduced with infested WPM.  Therefore, preventing introduction is critical with these exotic pests.

U.S. Customs and Border Protection is responsible for enforcing the regulation at ports of entry.  To motivate WPM compliance, effective November 1, 2017, responsible parties with a documented WPM violation may be issued a penalty under Title 19 United States Code (USC) § 1595a(b) or under 19 USC § 1592.  This is a change from the previous published threshold of 5 violations.  There will be no yearly reset for calculating repeat violations as each WPM violation may incur a penalty.

As trade industry members, you are encouraged to educate your supply chains about ISPM 15 requirements.  Informational material on WPM is available from U.S. Customs and Border Protection.

Pallet news briefs

Smaller pallet easier to move from truck to sales floor

Display-ready shipments are popular with retailers trying to save time and money on stocking shelves, and the packaging inside the pallets often evolves to match the way products are presented to customers.

As part of this movement, pooled wooden pallet provider CHEP offers a half pallet that is easy to maneuver from tractor-trailer to retail floor loaded with ready-to-go products. The 40- x 24-inch pallets, edged in CHEP’s signature blue paint, cut labor costs and make the supply chain more efficient, says Jason Adlam, vice president, new business development, CHEP USA. Read more.

LPR launches its Retail Portal

LPR has launched its new retail portal, derived from the LPR customer portal myLPR. The retail portal includes features which will allow simpler management of pallet collection, along with planning tools and dashboards. The system will also allow retailers to monitor collection planning, make changes to collection dates.

The system brings more autonomy to our retail partners and was created with simplicity in mind.

Discover it on https://www.youtube.com/watch?v=–3MRc8n1Bo&feature=youtu.be

About LPR

LPR-La Palette Rouge, a division of Euro Pool Group, is a pallet-pooling company for manufacturers and distributors in the fast-moving consumer goods sector. LPR provides a full pallet service solution to its customers in the manufacturing, distribution and logistics sectors and their retail partners. By using and sharing pallets as circular logistic carriers, we help our customers to reduce their environmental impact and make their supply chain more efficient. Every day, customers benefit from the advantages of our reusable pallets. In close collaboration with our stakeholders we contribute to the transition towards a circular economy by sharing the benefits of our reusable packaging solutions across the supply chain. http://www.lpr.eu

AirAsia X and Unilode extend ULD management partnership until 2023

AirAsia X, the long-haul affiliate of AirAsia, and Unilode Aviation Solutions, the leading global provider of outsourced Unit Load Device (ULD) management and repair solutions, have extended their ULD management agreement until 2023, for the second time in their ten-year partnership.

Mr. Pete Chareonwongsak, RedCargo Logistics CEO, said: “AirAsia X has been Unilode’s loyal customer since 2009 and throughout their partnership has relied on Unilode’s support, expertise and flexibility to supply containers and pallets that meet its exponential passenger and cargo growth and the network demands placed on its widebody fleet. Unilode’s commitment to invest in a mutually beneficial partnership has convinced AirAsia X that the renewed ULD management agreement will further drive efficiencies, load capacity and the digitalization of its cargo business powered by RedCargo. AirAsia wholly-owned subsidiary, Red Cargo Logistics, relies on partnerships like the one being announced today, as it aims to maximize revenue-generating belly space across all AirAsia and AirAsia X services.”

Mr. Benoît Dumont, Unilode CEO, said: “AirAsia X is one of the fastest growing long-haul, low-cost airlines in the world with more than 100 widebody aircraft on order, an increasing cargo business and a pipeline of new destinations to be added to its network. Unilode continuously enhances its ULD management service by taking its customers’ input, expectations, and business objectives into account and is committed to supporting AirAsia X’s ambitious growth plans with customer-focused and innovative ULD solutions. We are pleased to renew our agreement with AirAsia X for the second time during our partnership, which proves the long-term value that Unilode delivers to its airline customers.”

Pallet Design for the 21st Century, May 7 – 9, 2019 at Virginia Tech

What is the short course about?

To be held May 7 – 9, 2019 at Virginia Tech in Blacksburg VA, this intensive three-day short course will teach techniques that pallet designers can use to save money when designing pallets by considering the interactions between all of the components of the material handling system. The course will use a state-of-the-art pallet design software called “Pallet Design System” (PDS) to better demonstrate the steps that go into the pallet design process. You will also be taken on a tour of a working, state of the art, pallet testing laboratory!

Who should attend?

Pallet design is an integral part of the material handling system. Wood pallet suppliers, sales professionals, professionals responsible for pallet purchases, packaging engineers and pallet specifiers will all benefit from an understanding of how to design pallets that will last longer and perform better.

Short Course Agenda

Day 1: 2:00 p.m. – 5:00 p.m.
• Effects of pallet design and selection on materials handling costs.
• Tour the laboratories of the Center for Packaging and Unit Load Design.

Day 2: 8:00am – 5:00pm
• Effects of wood materials on pallet performance.
• Fundamentals of new and remanufactured stringer class pallet design: including pallet part grades and fastener specifications.
• Practice designing stringer class pallets using PDS.
• Fundamentals of block class pallet design.

Day 3: 8:00am – 12:00pm
• Practice designing block class pallets using PDS.
• Case Studies

Dr. Laszlo Horvath is the Director of the Center for Packaging and Unit Load Design at Virginia Tech. He also teaches package engineering and pallet design to both undergraduate and graduate students. His research areas include the analysis of interactions between the components of unit loads and the development of bio- based and sustainable packaging materials. Dr. Horvat is one of the 50 ISTA Certified CPLP professionals, a member of various ASTM, ANSI, and ISTA committees.

Dr. Brad A. Gething is the Director of Science and Technology for the National Wood Pallet and Container Association (NWPCA). Dr. Gething’s role includes participation in various standards bodies, promotion of research and development, and support on other technical issues related to the wood packaging industry. He also serves as a point of contact for “Pallet Design System” (PDS) software support.

Registration: $445 for 1-3 registrants from one company, $395 for 4-8 registrants, $345 for 9 or more registrants. Early registration ends on April 6th, 2019. After then, add $50.00 to each rate. The registration fee includes all course materials, CEU certificate, daily continental breakfast, lunch and refreshment breaks.

You can register for this short course by:

Calling: Erich Sawyer at 540-231-4084

Visiting: unitload.vt.edu/education/continuing-education and clicking the registration link

Lodging: A block of rooms is reserved for short course attendees at the Courtyard by Marriot in Blacksburg, VA. It is located only a mile from where the short course will be held. More information can be obtained by calling Holly at the Marriot at 540-552-5222 and asking about the rooms reserved for the Center for Packaging and Unit Load Design or by visiting our website and clicking the lodging link. These rooms will be held at this rate until April 9th, 2019.

Location: Brooks Forest Product Center, Virginia Tech, 1650 Research Center Dr. Blacksburg, VA 24061

http://unitload.vt.edu/

Goplasticpallets.com has pledged to recycle every plastic pallet and plastic box it supplies to customers.

This announcement comes in the wake of the huge amount of negative media coverage on single-use plastics and the devastating impact it is having on our environment and marine life.

96% of the plastic pallets Goplasticpallets.com supplies are made from recycled materials.

Last October 250 major brands vowed to eliminate all single-use plastics from their operations and invest in new technology so all packaging could be recycled by 2025 – a move described by the United Nations as the most ambitious effort yet to fight plastic pollution. (1)

Now Goplasticpallets.com is proving that it is a step ahead of these major brands and leading the way in recycling plastic waste, by not only supplying the UK’s largest range of multi-use, recyclable plastic pallets and boxes, but also committing to ensure they are ethically recycled at the end of their long use.

Jim Hardisty, Managing Director of Goplasticpallets.com, said: “Our promise is our word – we guarantee to take full responsibility for recycling each and every plastic pallet and box we supply to our customers. And, not only that, but we intend to make it as simple as possible for customers of all sizes to recycle their plastic pallets and boxes by offering both ‘drop of’ and ‘collection’ options.

“Ultimately, our mission is to help businesses create more sustainable supply chains by providing them with long-lasting, reusable plastic pallets and boxes, and ensuring they are responsibly recycled when customers no longer need them.

“Each customer that purchases plastic pallets and boxes from us will receive a certificate – our recycling commitment – this reinforces the responsible attitude we have towards recycling our products.

“As The Responsible Plastic Pallet Company, our ultimate goal is to be recognized as the most trusted supplier of long-lasting, recyclable plastic pallets and boxes in the UK.”

Last year the Environment Agency certified Goplasticpallets.com as an Accredited Exporter of plastic packaging waste. Just one year on, the company has set itself the ambitious target of recycling 350 tonnes of plastic waste from its customers’ used plastic pallets and boxes by the end of 2019.

Currently, 96% of the plastic pallets Goplasticpallets.com supplies are made from recycled materials. Just 4% are produced from virgin material which is recommended for ultra-hygienic environments, for instance, some food and pharmaceutical products.

References:

1. https://www.independent.co.uk/environment/plastic-waste-pollution-coca-cola-kelloggs-nestle-environment-recycling-un-ocean-a8606136.html

Svenska Retursystem has launched a new half pallet that is manufactured in Sweden from a blend of end-of-life SRS pallets (50%) and virgin resin (50%). This means that the half pallets will have a closed circular material flow, in the same way that the company’s return boxes (RPCs) have enjoyed for many years.

“Our mission is to streamline and environmentally adapt to the grocery industry’s goods flows,” says Martin Torpling, development manager at Svenska Retursystem. “The fact that the company is now launching a pallet that is manufactured in Sweden with a large part of recycled material from the company’s discarded pallets is a major advance for the entire industry, which thus significantly reduces its climate footprint.”

The new half pallet has been developed together with IPG, Intelligent Packaging Group, in Halmstad, Sweden. The pallet is adapted for automatic handling, is stable and can withstand high stress. It does not emit dust or wood chips, which provides a more healthy working environment for anyone who handles it throughout the flow. The half pallet is well suited for exposure in stores and has an estimated lifespan of 150 rotations in the pallet system.

The first pallets were to be sent out to customers during February. Svenska Retursystem will continue to clean out old worn-out half pallets and improve the quality continuously in the pallet pool.

Nyberg’s Deli changes to Helpall gray

SRS also announced that Nyberg’s Deli is now switching to Helpall gray, the company’s full footprint plastic return pallet to improve efficiency and improve its customers.  The company states that Helpall gray can withstand high stress, is friction-proof and works well in a freezing environment. The life expectancy of the pallet is 15 years. It does not emit dust or wood chips, which provides a more healthy working environment for anyone who handles it throughout the flow. Several of the country’s major food producers have already made the switch to Helpall.

Nybergs Deli is a family company that offers a carefully selected range of good and good food that everyone can afford. The company has about 80 employees divided into several productions in the slaughterhouse area south of Stockholm. The company mainly manufactures processed meat products but also has a vegan factory where they produce vegan products made from wheat and soy.

“We work actively to be responsive to the wishes of our customers and our environment,” says Magnus Andersson, Production & Product Flow Manager at Nybergs Deli. “By switching to Helpall gray we get a pallet that improves everyday life for our partners while at the same time it is a much better choice from a sustainability perspective.”

From February, all deliveries from Nyberg’s Deli will take place at Helpall gray. Nybergs Deli estimates that they will use 30,000 full pallets per year. They already ship 1.1 million SRS RPCs per year.

“We are pleased that so many companies see the benefits of our return pallets,” says Cecilia Ratner, Key Account Manager at Svenska Retursystem. “Because Nybergs Deli is switching to Helpall gray, they are getting a climate-smart cargo carrier and give both Nybergs Deli’s own employees and their customers a more healthy work environment.”

Nybergs Deli is Svenska Retursystems first customer who chooses to utilize standardized APIs that integrate with SMART Pooling. This means that Nybergs Deli does not need to register outgoing pallet transactions in SRS customer web, but it is enough that they do so in their own system. With automated APIs, the administration of pallets is simplified and automated.

Also read: Coca-Cola European Partners and Finland’s largest dairy start shipping on reusable plastic pool pallet from Svenska Retursystem