Skyrocketing cost of wooden pallets drive up prices for consumers amid supply chain concerns
Wooden pallet costs are up 60% compared to before the pandemic
Skyrocketing cost of wooden pallets drive up prices for consumers amid inflation concerns
Increased cost of wooden pallets are forcing companies to pay thousands of dollars more for the vital packaging product. FOX Business’ Lydia Hu with more.
One of the leading contributors to shipping and inflationary issues is the surging cost of wooden pallets. The skyrocketing cost will drive up prices for consumers, as supply chain concerns continue nationwide.
Greenway Products & Services is the largest pallet company serving the Metropolitan New Jersey, New York and Pennsylvania areas. Greenway Products & Services president Dominick Davi told FOX Business that after being in the pallet industry for 25 years, he’s "never seen anything like this at all."
"Ninety percent of everything in the United States is shipped on a pallet…it's a very integral part of the whole entire supply chain," he said on "Varney & Co." Tuesday.
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Wooden pallets are used in every step of the shipping process. Whether purchased new or used, rented and returned, companies are being forced to pay thousands of dollars more for the vital packaging products.
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Davi told FOX Business’ Lydia Hu that before the pandemic, the wooden pallets cost approximately $12; now the price has risento $21 apiece.
One Greenway Products & Services customer buys 520 pallets a day, six days a week – taking their pallet cost from approximately $37,000 before the pandemic to now more than $65,000 a week.
Meanwhile, President Biden held a roundtable discussion with the leaders of some of the nation's largest retailers and manufacturers on Cyber Monday to discuss the supply chain crisis as part of the White House's effort to assure Americans that the products they seek will be available during the holiday season.
WASHINGTON, DC - NOVEMBER 29: U.S. President Joe Biden delivers remarks at the start of a hybrid virtual roundtable with CEOs and leaders of retail, consumer products firms, and grocery store chains in the Eisenhower Executive Office Building on Nove
A major conflict is the scarcity of the wooden pallets that is driving up prices, along with labor costs and prices of lumber. These costs will be passed along to consumers amid inflation concerns.
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"We're here seven days a week right now. We're just trying to save Christmas," Davi concluded.
FOX Business' Breck Dumas contributed to this report.