Ukraine conflict to cause pressure on pallet supply

Tilburg, Netherlands: The European Federation of Wooden Pallet & Packaging Manufacturers (FEFPEB) warns that the conflict in Ukraine could cause significant pressure on the supply of wooden pallets and packaging in the coming weeks.

FEFPEB secretary general Fons Ceelaert said: “The terrible events unfolding in Ukraine have had an immediate impact on industries of all kinds, disrupting vital trade flows, and reducing availability of many different materials and goods. The usual supplies of timber needed for the production and repair of wooden pallets and packaging have had been hit hard, and availability has been significantly reduced.

“Alongside the sizeable ongoing international challenges that already exist in the market, we expect to see a general upward trend in the price of all commodities, including wood. In the meantime, our member associations’ businesses around Europe are working hard to secure supplies from their partners in order to maintain continuity of pallet and packaging production.

The Timber Packaging & Pallet Confederation (Timcon) echoes this cry. President John Dye said: “We are aware that the trading climate remains difficult, with ongoing pressures affecting the supply of timber.

“The tragic events in Ukraine have added a further challenge, with closed sawmills and generally disrupted trading with this source country impacting on usual wood supplies into Europe. Meanwhile, economic sanctions will have a significant effect on Russia and Belarus.”
There are early signs of wood availability returning to established seasonal patterns, however, Dye is pleased that there are early signs of wood availability returning to established seasonal patterns:

“After the past two turbulent years, the signs of more seasonal trade flows and predictability in the market are welcome.”