BIFA, the British international Freight Association, says that media reports suggest there could be a significant increase in the price of wooden pallets over the coming months due to timber shortages.
A recent meeting of the Timber Packaging and Pallet Confederation (TIMCON) reported that 2014 began with unseasonable pressure on the availability of timber for pallets from the recovering construction sector, recent weather conditions and booming demand for timber in foreign markets.
Observers have suggested that the market cannot satisfy demand and with sawmills running at capacity, it is unlikely that they will meet the requirements for the remainder of the year.
The same observers have suggested that all markets want timber: Canada has been affected by beetle attack, forcing China to purchase from Russia and Scandinavia. America's housing boom is triggering increased imports from Europe, North Africa, Egypt and the Middle East which is also putting pressure on demand. Many of the other global markets will pay more to secure the supply of timber they want, driving global costs.
