Greenway’s President Dominick Davi interviewed in Fox News’ Coverage on Pallet Prices
One of the leading contributors to shipping and inflation problems is the surging cost of wooden pallets. What exactly is the problem?
The problem is a scarcity of wooden pallets that’s driving prices. Brand new pallets before the pandemic would have cost about $12.00 a pallet. But now the pallets are reaching $21.00 a pallet. The customer that is going to buy the pallets shown buys 520 pallets a day, six days a week. These higher pallet prices are taking their weekly pallet cost from about $37,000 a week before the pandemic to now more than $65,000 a week.
Dominick Davi reports he has been in the pallet business for 25 years and has never seen anything like this at all. Ninety percent of everything in the United States is shipped on a pallet. It is a very integral part of the entire supply chain. He says, “We do a lot of work. We’re here seven days a week right now. We’re just trying to save Christmas.”
A little bit of inside baseball on the pallet market … There is a market for used pallets and for new pallets, and on both sides the prices are going up, driven by labor costs and the prices of lumber. Prices of new pallets are up about 60%. That’s compared to before the pandemic. And the prices for used pallets have doubled, and in some cases tripled. According to retailers and manufacturers, these costs are going to have to be passed along to the consumer, which is all of us.
About Greenway Products & Services
Greenway Products & Services, LLC is the largest pallet re-manufacturer and recyclers in NY, NJ, PA, MD, and DE. We also accept scrap wood from our customers that we turn into valuable resources. Greenway is a highly-rated, full-service pallet management company. Contact us for a quote today at email@example.com. Visit our website, greenwaypsllc.com or call us at 732-442-0200. We can deliver trailers to you on a moment’s notice throughout the NY-NJ-PA-MD-DE Mid-Atlantic area.