UNITED STATES - Although the ANUK team is still remote, we share a powerful network of industry members that lets us tap into the wider fresh network. Understanding the pain points of both buy and supply runs through our minds on the daily. When the United Fresh Produce Association—along with other industry associations—sent out a signed letter describing the cause and effects of a pallet shortage, we turned to those facing this issue head on.
In our first dive into this issue, I spoke with Dante Galeazzi, CEO and President of Texas International Produce Association.
“It really depends on the type of pallet,” noted Dante. “Across the board, we have seen pallet costs increase. I don’t think there’s a single person who would disagree with that statement. Where we’re seeing the greater increases in cost are the more specialized type of pallets, such as recycled or reused pallets. For folks who require block pallets, those pallets are the one that seem to be having an acute shortage. Within that, the farther a supplier is from an epicenter that is using those pallets, the harder it is for them to find that supply.”
Coupled with the issues of transportation, driver shortages, and additional costs, Dante further explained that, when faced with the choice of utilizing all of their pallets in one city versus breaking up that supply for smaller companies, pallet providers will choose the first choice. If it’s McAllen, Texas, they’re supplying, they can deliver to over 100 suppliers in one fell swoop. Understandable, of course, but it also highlights the disparity of supply.
“It also depends on the commodity requirements as well,” Dante further remarked. “I’ll give you an example. A load of berries or herbs or wet veg—the weight requirement for that pallet is probably weighing around 1,400–1,500 pounds. If you have a load of watermelons, on the other hand, watermelons in a 28 inch bin, that load is going to hit that weight real fast. The weight is condensed, it’s localized, and you just need to have a sturdier pallet.”
Dante went on to comment that conversations and changes within the supply chain will need to address how to accommodate the supply of pallets that is available and to match that supply to the commodity that requires it.
This will continue to be an ongoing conversation, so stay tuned to AndNowUKnow as we turn to other suppliers and associations for more information.
