How Empty US Ports Are Reshaping Used Packaging Prices: Pallets, IBC Totes & Gaylord Boxes

Trump's tough tariff policies led to a sharp drop in U.S. port activity. This drop has caused major disruptions in the industrial packaging sector. Immediate effects are clear at major container terminals. The ripple effects on pallets, IBC totes, and Gaylord boxes show a big shift in supply chain economics. This will reshape pricing, availability, and sourcing strategies for years ahead.

The Unprecedented Scale of Port Disruptions

Immediate Impact on Container Traffic

The severity of the current port crisis cannot be overstated. Seattle port commissioner Ryan Calkins told CNN:

"We have no container ships at berth. This is a stark reminder that tariffs have real impacts."

This inactivity shows a big shift from normal operations. It happens outside the usual seasonal lulls that can sometimes leave terminals empty.

The Port of Los Angeles, the busiest container port in the U.S., expects imports to drop by 35% in the next two weeks. Gene Seroka, the port's executive director, warned that arrivals will drop by 35%. He noted that:

• Shipments from China for major retailers and manufacturers have stopped
• Cargo from Southeast Asia is much lower than usual

These projections match real-time data. Imports at the port are already down 35% compared to last year.

Long Beach Port CEO Mario Cordero called the situation "dire." He compared it to the disruptions during COVID. This comparison matters. Port officials haven't seen such big downturns since the pandemic's peak. Southern California's port complex handled 20 million containers in 2024. Now, it faces a sharp decline in economic activity.

Tariff Structure Driving the Crisis

The tariff rules starting in early 2025 have caused major trade disruptions:

• China: Hit with a hefty 145% tariff (125% "reciprocal" tariff + 20% levy tied to fentanyl-related policies)
• Canada and Mexico: 25% tariffs on most imports, even with USMCA protections
• All international imports: 10% tariff raises costs for all trade relationships

The impact has been swift and severe:

• Container bookings from China to the U.S. fell sharply to 5,709 TEUs by May 5
• Bounced back to 21,530 TEUs after a brief pause in reciprocal tariffs
• Still shows a huge drop compared to last year

Global container volumes are expected to drop by 1% in 2025 - a loss of about 1.8 million TEUs. It will be only the third decline since data collection started in 1979.

Comprehensive Analysis of the Used Packaging Market Crisis

The Pallet Market Revolution

Supply Chain Disruption and Circulation Breakdown

The port crisis has caused a major disruption in pallet circulation. Traditional pallet flow patterns have changed. Now, fewer containers arrive. This means there's a smaller, steady stream of used pallets for secondary markets.

Current used pallet prices vary dramatically by region:

• Hawaii: $11.92 per pallet
• Missouri: $0.25 per pallet
• California: $4.50 per pallet

This wild price fluctuation shows how normal distribution networks have broken down. Trade disruptions affect regions unevenly, leading to this volatility.

Lumber Costs and Manufacturing Pressures

The pallet industry feels more pressure from rising lumber costs, which make up to 80% of wood pallet production expenses.

Current pricing structure:

• New pallets: $15 to $30 for standard 48" x 40" wooden pallets
• Used pallets: $5 to $15, depending on condition

The 25% tariffs on Canadian softwood lumber, along with the 14.5% duties, make the total tariff rate nearly 40%. This price shock affects pallet manufacturing costs and will likely boost demand for used alternatives.

The National Association of Home Builders says these tariffs will increase building costs and make housing less affordable. The impact goes beyond just housing and affects the entire supply chain.

IBC Totes Market Dynamics and Projections

Market Size and Growth Trajectories

The Intermediate Bulk Container (IBC) market is a key part of industrial packaging, valued at $25.7 billion globally in 2024. The market shows strong growth potential:

• Research firms predict it will reach between $15.62 billion and $46.3 billion by the early 2030s
• Annual growth rates of 5.5% to 9.5%
• These projections were made before the recent trade disruption and may need big updates

Key market characteristics:

• The liquid segment dominates IBC usage, accounting for more than 65.3% of total market share
• Industries include chemical processing, food and beverage, pharmaceuticals, and agriculture

Regional Impact and Supply Chain Realignment

Asia Pacific holds a 37.16% share of the IBC market, making its trade disruption with the United States very important. North America was expected to hit $3.94 billion by 2032, but now there's significant uncertainty.

Used IBC pricing typically falls between $75 and $250 for 275-gallon or 330-gallon caged containers. Some may even be free, but premium units can cost up to $350.

Gaylord Box Market Transformation

Pricing Structure and Market Segmentation

The Gaylord box market has complicated pricing that reflects quality details and local supply factors:

New triple-wall corrugated Gaylord containers:

• Single 48" x 48" x 48" unit: $59.29
• 75-unit volume purchase: ~$26 each

Used Gaylord pricing varies by region:

• 2-wall construction: $3.00 per unit
• 4-wall and 5-wall setups: up to $5.25

Manufacturing and Supply Chain Implications

Triple-wall construction Gaylord containers feature three layers of corrugated fluting between four sheets of fiberboard. They represent the premium segment and are likely to keep their pricing power during supply disruptions.

Gaylord containers are mostly made in the USA, carrying the "Made in the USA" label. This domestic production capacity helps shield against direct tariff impacts but doesn't guard against lower demand when import volumes drop.

Regional Market Analysis and Emerging Patterns

West Coast Port Impact Assessment

The West Coast ports are the main entry point for Asian imports, making them the center of the current crisis:

• Port of Long Beach: Container volumes down 44% from last year
• Los Angeles: Shows a 35% decline
• These facilities handled 20 million containers in 2024
• Received 70 notices of "blank sailings" (canceled trips due to insufficient cargo)

Timeline and Cascade Effects

Trade disruptions have delayed effects that make market analysis more complicated:

• West Coast ports: Feel impact within 30 days of new policy
• East Coast facilities: Face delays of 45 to 60 days due to longer shipping routes

Apollo Global Management timeline:

• Mid-May: Stop in incoming cargo ships expected
• June: Business inventories will shrink
• July-August: Shortages may appear

This timeline shows that packaging market disruptions will begin in early 2025, with the adjustment period lasting until 2026.

Market Recovery Scenarios and Strategic Implications

Short-Term Adaptation Strategies

The current crisis has prompted immediate tactical responses across the packaging industry:

• Container booking data shows big swings
• Volumes from China to the U.S. jumped 277% after temporary tariff pauses
• Shows how sensitive the market is to policy changes

Manufacturing inventories increased for six months straight in Q1 2025, showing steady demand for packaging materials despite trade disruptions.

Long-Term Structural Changes

The packaging industry is undergoing lasting changes that go beyond temporary trade policy adjustments:

Geographic diversification:

• Companies are diversifying sourcing to Vietnam, India, and Malaysia
• Creates new logistics patterns and packaging solution needs
• Will change the competitive landscape of packaging markets

Circular economy expansion:

• Recycling and reconditioning industries are expanding pickup areas
• Investing in better processing methods
• Current crisis might speed up sustainable packaging adoption

Investment and Operational Recommendations

Risk Mitigation Strategies

Businesses today should strengthen their supply chains rather than only cut costs:

• Increase buffer inventory of essential packaging materials
• Protects against sudden supply disruptions
• Market volatility makes the higher inventory costs worth it as insurance

Diversify sourcing from different regions and suppliers:

• Lowers risk of trade policy issues
• May sacrifice some economies of scale
• Offers operational flexibility valuable in uncertain times

Technology and Process Innovations

Invest in reconditioning and refurbishment:

• Extends the life of packaging assets
• Cuts down need for new materials
• Offers backup supply sources less affected by trade policy changes

Digital tracking and inventory systems:

• Help businesses use packaging better
• Find ways to reuse and recycle
• More valuable when supplies are tight
• Help allocate limited resources better and reduce packaging waste