Pallet Shortage Will Continue, Maybe Into June


As we reported two weeks ago, the country is experiencing a historic shortage of pallets that is causing the cancellation of some deliveries to growers & shippers.  There is much confusion and angst surrounding this very significant issue, with cancellations, panic and anger all mixed together. It is possibly the most significant (and threatening) issue that we have ever seen.

CHEP indicated to us that this issue is ‘not’ just one industry (i.e. watermelon or any other F&V crop), but rather spread across all industries and the entire country.  They have completely cut off their winter storage program and are shutting down their supply to companies that are either in arrears with their accounts and/or are normally ‘shoppers’ of pallets. 
It was confirmed to me yesterday that they are ‘allocating’ pallets to their customers based on the available inventory in each area and are communicating regularly with them.  Additionally, they are accepting no new customers during this troubling period.  They have talked with retailers and alerted them to the situation, and asked for all used pallets to be released back into the supply chain.