November 29th, 2021
Wood Pallet Vs Plastic Pallet Pricing
Table of Contents
With Wood Prices Rising, Now’s the Time to Switch to Plastic Pallets
The timber price increase. You’ve undoubtedly heard about it by now, but do you know what it means?
Well, the price of wooden pallets in the UK has sky-rocketed recently. Wooden pallets, such as the euro pallet, are up to three times higher compared to 2020. Until lately, a euro pallet used to cost around 10 to 15 pounds. Today, it’s possible to acquire a wooden pallet for 30 pounds, or in some cases, even more with certain vendors. In addition, the supply is not always reliable.
At RollPallet UK, we believe that knowledge is critical in a market full of uncertainty. That’s why we’re going to discuss all there is to know about lumber prices increasing, and why making the switch to plastic pallets may be a good idea.
The Euro Pallet Market Trend
With a national building programme focused on creating houses primarily from wood in the U.S, and the constant development that China is experiencing, the price of wood is on a continuous rise. So much so, that the soaring demand from both dominant markets began to be met by increasing price tags, all over the world.
Another cost element has been added to the pallet construction, and that is the metal of the nails. Steel costs have increased by almost 100 percent, which has resulted in similar price hikes across many industries.
As of Q4 2021, the increase in pallet costs seems to be stabilising. With the likelihood Covid sticking around for a long while yet and post-Brexit price fluctuations remaining volatile for the logistics industry as a whole, it’s unlikely that prices will plummet suddenly. The relatively expensive cost of euro pallets and other wooden pallets will stay high for a while, without leading to price cuts.
The price of wood increasing is a significant trend that should be kept in mind by anyone involved with the manufacturing or purchasing of euro pallets and other wooden pallets. Being aware of this will allow you to make decisions accordingly, such as switching over from wooden pallets to plastic ones if necessary.
Wooden Pallets vs. Plastic Pallets: A Pricing Breakdown
For many years, plastic pallets have been a fantastic substitute for wooden pallets. Plastic pallets are durable, lightweight, easy to transport, and highly customizable. Moreover, price tags for plastic pallets have been significantly lower than those of wooden ones.
However, it’s important to note that plastic pallets have also risen in price by 20% to 30%. While this is due to an increased demand for lumber, in addition to price hikes in raw materials, it still doesn’t compare to the price of wood increase, which reached a whopping 200% – 300%. Still, plastic pallets are a price-effective solution for many companies. Plastic pallets have raised in price, but still remain lower than wooden euro pallets on the market.
It is now possible for retailers and wholesalers alike to benefit from switching their euro pallet inventory from wooden to plastic. At Roll Pallet, we offer a very diverse range of plastic pallets for a range of different industries.
Do Wooden Pallets Cost the Same as Plastic Pallets?
The simple answer? No, the wood cost increase cannot be compared price-wise to plastic ones. This is because the general price of pallets is related to the application, which means the choice of pallets has to be made according to needs and price range.
For example, a 1200 x 800 x 150mm light, nestable plastic pallet will set you back about £7.50 (incl. VAT), which is far below the price of the euro pallet. Wooden pallets are more expensive than plastic ones because they require a lot of additional work to produce. From sawing wood logs to nailing metal plates on top of them, wooden pallets take up far more resources that need to be paid for by the end customer.
As a result, wooden pallets’ price tags are higher than those of plastic ones. Additionally, this price difference is increased even further due to the fact that wood isn’t as readily available as it once was.
In contrast, plastic can be moulded and shaped without too much hassle.
Price tags for plastic pallets are comparably lower, and they require fewer resources to make. Thus, price-wise wooden euro pallets cannot be compared with plastic ones.
The fact is that the costs of plastic pallets are now more similar to those of wooden and Euro pallets than they’ve ever been. As a result, you may wish to assess your preferred mode of transportation.
Who Needs Plastic Pallet Boxes?
Agri-food and fruits and vegetable industries are the most prevalent users of plastic boxes primarily used to store and transport goods. On the other hand, metal-based pallet boxes are known for carrying and shipping a wide range of materials, which, when not in use, can be folded down.
Almost all organisations that need to store food, textiles, and miscellaneous goods should choose plastic pallet boxes. Industries such as agriculture, dairies, and retail strongly prefer these plastic pallet boxes because they are ideal for storing both fresh and waste produce.
RollPallet UK plastic pallet boxes are famous for their durability as they are made from high-quality plastic. In addition, they include a runner on the bottom, which allows easy access when using mechanical lifting equipment.
The retail sector usually prefers plastic pallet boxes that come with a lid for security and protection reasons. We also offer a range of colours, a half drop-down gate to ensure loading ease, and dollies that allow smooth movement around the stores or warehouses.
RollPallet UK Plastic Pallets
With the wood price increase, Roll Pallet is one of the few UK providers on the market that can offer plastic pallets at a price that is lower than that of the equivalent wooden pallet.
We offer a wide range of products, including wholesale price-effective plastic pallets, euro plastic pallets, stackable plastic pallet boxes for storage/transportation of goods, and much more.
We are also able to offer special price quotes on request for customers who order over a certain amount of products or require additional services, such as customizing or engraving.
Many users choose RollPallet UK because we are a price-effective and durable solution that meet the demands of both retailers and wholesalers alike. We are dedicated to providing efficient supply chain solutions, which is why we go the extra mile to make sure our plastic pallets are both price-effective and safe.
Take time to browse through our selection of plastic pallets, and other products that can help you manage your supply chain process in a more efficient manner. If you have any questions, feel free to contact us for more information.