Pallets - Are plastic pallets worth the extra cost?

There are billions of pallets in daily use all over the world, the USA, alone, uses two billion. The wooden pallet was designed as a rigid platform that allows for rapid transfer of goods from one mode of transport to the next, from truck to train and on to a ship, for example.

Pallets are designed to be moved by forklift trucks. They allow for safe racking and stacking of goods in warehouses and trucks without damaging the goods. There are two basic pallet designs, one that allows forklift access and pick up from two directions, and the other that allows four-way access.

Pallets may appear to be of low value individually, but collectively they represent a massive market. 500 Million new pallets manufactured and 300 million are repaired and resold in USA alone. Small wonder that efforts are made to encourage the use of recycled timber in pallet making. Nearly half of all the US hardwood trees logged in the US are used for making pallets.

Pallets come in a standard size of 48in x 40in x 5in. There are different specifications designed to cope with different weight loads

Pallets are also available in plastic and corrugated cardboard. Plastic pallets are very durable, but have a much higher initial cost, five times the cost of a wooden equivalent. The higher cost of plastic pallets is worthwhile only in a closed loop shipping system, where the palletsâ€™ return is guaranteed.

Wood pallets are not the only option for shippers, Plastic and corrugated cardboard pallets are also commonly available. However wood remains the preferred shipping mode because it is 20% of the cost of a plastic pallet and is more durable then cardboard. In closed loop shipping systems where the pallet is returned to the shipper plastic is becoming more common because its durability outweighs the initial cost.

Around half of all pallets are designed as, low specification, single trip pallets. The average pallet makes 1.8 trips before it is scrapped. Only a small percentage of damaged pallets are repaired, most just lie and rot, while a few may be recycled as wood chips.

Transport companies are increasingly using satellite tracking on pallets to enable customers to keep track of their shipment

Article Source: http://www.rightbiz.com

Ventura writes on a variety of supply chain logistics topics, including pallets. You can find more of Ventura's articles here.

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