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

The U.S. shipping industry is facing a seismic shift. With steep tariffs triggering a collapse in import volumes, ports are emptying—and the ripple effect is now shaking up the secondary market for industrial packaging. From used pallets to reconditioned IBC totes and surplus Gaylord boxes, prices and availability are in flux. Here's what’s happening, why it matters, and how businesses can respond.

The Chain Reaction: From Tariffs to Port Slowdowns

The source of the disruption is clear: aggressive tariffs introduced by the Trump administration, including a 145% duty on Chinese imports and a blanket 10% on most others. These policies have drastically cut shipping volumes. Bookings from China are down by as much as 60%, and ports like Los Angeles are reporting a one-third drop in vessel arrivals.

Container traffic has thinned to holiday-season levels, even in peak months. Port Optimizer data projects further declines, and other ports like Houston and New York are bracing for delayed but similar impacts.

Industry analysts expect global container volumes to fall by 1.8 million TEUs in 2025—a rare decline and only the third since 1979. You can read Drewry’s full container market forecast here.

Why the Lag Matters

Due to shipping lead times, the full impact of these tariffs isn’t immediate. Goods already en route when tariffs hit continue to arrive for several weeks, creating a delay before port slowdowns become visible. The West Coast sees effects in about 30 days, while ports like Houston and New York take 45–60 days.

That delay masks the severity of the disruption—and makes recovery even slower.

How It’s Affecting Pallet Prices

Slowing Demand from Importers

As fewer shipments arrive, warehouses need fewer pallets. Activity near ports is dropping, labor is being scaled back, and demand for both new and used pallets has softened—particularly in coastal hubs like Los Angeles.

Circulation Breakdowns

The normal flow of pallets through the supply chain—from ports to distributors to recyclers—is now fragmented. With less freight moving, fewer pallets are cycling back into reuse. Some trucking companies are even warning drivers to avoid Southern California, due to the increased likelihood of returning with empty loads.

Localized Price Volatility

Used pallet prices are beginning to diverge across regions. Port cities like LA are experiencing temporary surpluses, while inland markets haven’t yet seen the same shifts. That dynamic is expected to change as disruptions ripple further inland.

The IBC Tote Conundrum

Export Plans Canceled

IBC totes, which are often prepped for international shipments, are now piling up unused. With trans-Pacific exports down 30–40%, a short-term glut of cleaned totes is hitting the market—driving prices down temporarily.

Fewer Imports = Fewer Returns

Since totes are heavily used in chemical, food, and pharmaceutical logistics, fewer incoming shipments means fewer used totes returning for reconditioning. Once the oversupply clears, prices could spike due to lack of available stock.

Gaylord Box Glut and Quality Shift

Overstock from Canceled Imports

Retailers canceling orders (like Target halting Chinese shipments) have left warehouses full of unused Gaylord boxes. These were intended for redistributing goods that are no longer arriving.

Changing Specs and Quality

As buyers source from new international suppliers, the specs and quality of Gaylord boxes are also changing. This is beginning to segment the secondary market—creating premium pricing for boxes with preferred characteristics.

Virgin Material Costs Rising

New Gaylord boxes are also affected. Shipping disruptions are raising raw material costs, which could increase demand (and prices) for used boxes as businesses seek cost-effective alternatives.

What to Expect Moving Forward

Regional Redistribution

As shipping routes pivot away from tariff-affected regions, supplies of used packaging are shifting. Markets that export to non-tariffed countries are seeing upticks in demand for recycled materials, while traditional import hubs face overstock.

Price Instability

A 20% drop in U.S. imports is projected for the second half of 2025. This drop will likely introduce erratic pricing and regional disparities in used packaging costs.

Recycling Industry Response

Recyclers and refurbishers are adjusting. Some are expanding their pickup ranges to find more supply, while others are investing in better reconditioning methods to make existing inventory go further.

Strategic Takeaways for Businesses

To manage this volatile market, businesses should:

• Increase buffer inventory of essential packaging materials.
• Diversify sourcing across multiple regions.
• Explore substitutes for hard-to-source materials.
• Track regional pricing for smarter purchasing.
• Invest in reconditioning to extend asset lifespan.

Final Thoughts

The current disruption in global trade is already transforming the used packaging landscape. While the short-term result may be an oversupply in some areas, the long-term risks point toward shortages and rising prices as material pipelines dry up.

Businesses that proactively adapt—by planning inventory, expanding supplier networks, and investing in circular logistics—will be best positioned to weather the storm and maintain operational resilience.

Recovery may be slow, but preparation can offer a competitive edge.