Brambles Discusses Lumber Supply and Alternative Materials
CHEP is diversifying its lumber supply, according to Carmelo Alonso-Bernaola, Senior VP, Global Supply Chain for Brambles. He spoke recently Brambles presentation in London. While the company has traditionally sourced lumber in regions where lumber was needed, he said that the practice left them heavily exposed to any market fluctuations within those regions.
“So, the first action we're putting in place if diversifying the supply of our lumber needs in the different regions,” he said. “For example, in the U.S. we are today procuring significant volumes from Latin America. With inflation in the U.S. we are divesting more volumes towards Latin America and importing into the US market.”
In Europe, the company is exploring Russia as a lumber source. Alonso-
Bernaola stressed that the initiative is still in the early stages as no tall lumber coming from Russia is yet certified. Another challenge is sawmilling quality. However, they “partnering with local players there to develop them as a way to create alternatives for the European Market.”
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OCTOBER 2018
Is the block pallet trend ebbing? Image from the MMH Annual Pallet Report
More new wood pallets, fewer recycled being purchased
This year’s survey showed an increase in wood pallet purchasers buying new, with a significant drop in those purchasing used pallets, which speaks to the continuing degradation of pallet core quality.
and more pallet users have become familiar with block pallets. “People began to recognize that the block pallet is very functional. In many ways, it is much more functional and can reduce operating costs. He noted that the slide is consistent with manufacturing trends--75% stringer and 21 to 25% block.
“I think we are starting to see that growth in block manufacturing starting to ebb a bit, and it makes sense. Certainly, the rental companies are all on block pallets, and the pools
are maturing. But the growth in the
recent past from stringer to block pallet
was significant.