Used Pallet Price Index

Pallet prices are influenced by factors such as material type (wood or plastic), condition (new, used, refurbished), size and dimensions, and regional availability. The type of wood (e.g., hardwood vs. softwood), production costs, and market demand, particularly in logistics and retail, are significant determinants. Seasonal demand fluctuations, cost of living in production areas, and supply chain issues like raw material shortages and transportation delays can also impact prices.

Regional availability significantly impacts pallet pricing. Areas with abundant wood resources or local manufacturing facilities may offer lower prices due to reduced transportation and production costs. Conversely, regions with limited supply or higher demand may see elevated prices due to scarcity and increased logistical expenses. Supply chain disruptions can further exacerbate these regional price variations, especially during times of crisis. More remote areas may also have higher prices due to transportation costs and lack of supply.

Pallet prices saw an historical high in 2021 with used pallets reaching $20-25+ per pallet. This was mainly due to the pandemic caused significant disruptions in the supply chain. The surge in demand for shipping and logistics, combined with material shortages and production delays, contributed to historic highs in pallet pricing. Although prices have stabilized since then, they remain higher than pre-pandemic levels due to ongoing supply chain challenges and increased demand.

Pallet prices are typically updated on a monthly basis, with the average price per pallet in each city/state being calculated. During periods of high volatility or when significant market changes occur, updates may be more frequent to ensure accurate pricing information.

Like any commodity, pallet prices are influenced by supply and demand dynamics. When demand for pallets exceeds supply, prices tend to rise. Conversely, when supply outstrips demand, prices may fall. For example in 2021 pallet prices sky rocketed due to a lack of supply. In 2024 they have come down as supply has increased.

Yes the price of pallets can effect the cost of pallet recycling and removal services. When pallet prices are high, you can expect higher rebates and better service. When prices are low, typically pallet companies will be so flooded with pallets they will not be able to pay as much for your pallets, if at all. Also you may be changed a fee for removal for broken or damaged pallets.

Yes the size of the pallet can effect its price. The majority of used pallets are the standard 48 x 40 size. Custom or Odd Sized pallets are typically more expensive due to the lack of demand for them and labor it costs to make them.

A pallet buyer should always be informed of the trends in this industry. They tend to change quickly and often times buyers find themselves locked into a contract paying way more than the market price. This is why it is important to have a good relationship with your pallet supplier.

Knowing the trends in the pallet industry is crucial for pallet yards. They need to know how much to sell their pallets for and how much to pay for pallet cores and scrap pallets.