UK Wooden Packaging and Pallet Sector Facing Severe Challenges
The packaging and pallet sector is battling major ongoing pressure as the result of Covid , Brexit and other factors , according to the Timber Packaging and Pallet Confederation ( TIMCON ).
Delegates at the organization ’ s AGM , which was held in person in Manchester at the end of October 2021 , heard how industry-specific and wider general influences were impacting heavily on the supply and demand of wood and products such as pallets and packaging .
TIMCON President John Dye said while the annual increase in demand related to Christmas has started , there remains a shortage of used pallets in the UK – with recycling and biomass diverting some stocks away from the market – coupled with strong demand for reconditioned pallets in the EU market . Brexit continues to have an impact on the business with additional administrative , time and cost burdens for goods crossing between the UK and the EU . In general , several interlinked crises in related industries were deepening the issues , he added . These include the ongoing global imbalance of container locations around the world , which has pushed the price of shipping to new highs ; the difficulty in logistics , haulage and related industries in recruiting and retaining staff ; and continued pressure on supplies due to a post-lockdown rebound in demand for timber in several markets , including China and the US .
“ While the pallet and packaging industry is fully operational , ongoing challenges for logistics-focused industries in general and our sector specifically is placing intense pressure on our members ,” Dye said . “ We are continuing to monitor the situation and communicating with other industries and the government to ensure keeping the supply chain updated .”
Read more from the TIMCON GM .
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