An arcane technical bulletin on sprinkler systems ignited a firestorm among pallet users before being withdrawn this spring. But the controversy continues to smolder.
Susan Lacefield has been working for supply chain publications since 1999. Before joining DC VELOCITY, she was an associate editor for Supply Chain Management Review and wrote for Logistics Management magazine. She holds a master's degree in English.
It's not every day that an arcane technical bulletin sets off a storm of controversy, rumors, and finger pointing. But when the National Association of State Fire Marshals (NASFM) issued a draft code application bulletin (CAB) in September 2008, it caused just such a flare-up in the pallet community.
The source of the controversy was the humble wood composite pallet—or to be precise, the question of whether it could legitimately be classified as a wood—as opposed to plastic—pallet for purposes of fire code enforcement. That may sound like a semantic distinction, but it has big implications for DCs that use these pallets. A change in classification to plastic (wood composite units contain a plastic resin) would raise the units' fire rating, meaning they'd require higher-capacity (read: costlier) sprinkler systems to protect them.
Fears that they might be forced to retrofit their facilities with expensive new sprinklers sparked an outcry from several large shippers and groups like the National Wooden Pallet and Container Association (NWPCA). At a meeting in May, the NASFM attempted to quell those fears, offering public assurances that it had no intention of pushing for new rules or enforcement practices. Although the hubbub eventually died down, the incident pointed up how much confusion remains when it comes to pallets and fire safety.
The spark
The publication that sparked the incident was not a law or even a fire code, but rather a guide for fire inspectors. Titled "Pallet Fire Loading Impact on Sprinkler Design," the bulletin was written to address issues relating to compliance with section 13 of the National Fire Protection Association (NFPA) standard, which lays out requirements for installing automatic sprinkler systems.
Designing a sprinkler system to the NFPA standard is a complex calculus that involves many variables: floor area, the type of commodity stored, and the type of pallet the product is stored on, to name a few. But that last variable is sometimes overlooked, according to the NASFM. "When automatic fire sprinkler systems are designed pursuant to NFPA 13, the type of pallet intended to be used is a factor that is considered," says Jim Narva, chief project manager for the NASFM. "Changing the type of pallet that is used can have unintended consequences that affect the fire protection and the capability of the system."
What caused all the uproar was a section in the NASFM bulletin that pointed out that the "wood pallets" referred to in the NFPA standard are different from the wood composite units used widely today. The NFPA defines wood pallets as pallets made of pure wood with metal fasteners. Wood composite pallets, by contrast, are formed of sawdust held together with adhesives made out of a plastic resin called formaldehyde urea, the NASFM noted in the bulletin. That comment raised concerns that the NASFM considered composite pallets to be a variety of plastic pallet, and led to worries that wood composite pallets might be regulated as plastic pallets at some point down the road.
Narva insists that the association had no such intentions. "NASFM has been misrepresented as in some way proposing changes to the existing codes and standards or re-interpreting them; that is not what we are doing and that has never been our intent," he says.
In the end, the NASFM withdrew the CAB from its Web site. It also formed a committee to help rewrite the CAB to reflect only what's in the existing fire codes.
What does this mean for pallet users? For practical purposes, nothing. No company is going to have to upgrade its sprinkler systems, nor is anyone suggesting that they might be required to do so in the near future. However, the controversy does highlight the need to understand—at least on a basic level—the implications of the type of pallet you use for the safety of your facilities, your employees, and the surrounding community.
Total meltdown?
As for why fire codes treat plastic pallets differently from wood, it's all in the way the material burns. Although plastic may take longer to ignite than wood, plastic products (if they aren't treated with a flame retardant) burn hotter and faster than wood products do. And when heated, plastic tends to melt and run like lava.
"Plastic commodities typically produce higher-challenge fires and therefore require sprinklers that deliver more water," explains Jim Lake, senior fire protection specialist for the NFPA.
If a plastic pallet is treated with a fire retardant, however, it may be exempt from requirements for higher-capacity sprinklers. To receive that exemption, the pallet manufacturer must have its pallets certified by a testing laboratory, like Underwriters Laboratories (UL) or Factory Mutual (FM) Approvals.
The testing laboratory will subject the pallets to a 30minute burn test in a controlled environment. If the pallets are found to perform as well as or better than wood, they will receive an FM 4996 Approval or a UL 2335 Listing. For example, all of the pallets used by pallet pooling company iGPS have received a UL 2335 Listing, says Bob Moore, the company's CEO. "Our pallet just doesn't burn at all," he says. "It smokes a little bit." (That's not to say that fire-retardant plastic isn't without its own controversies. See sidebar, "another firestorm in the making?")
Name game
So why not simply declare the wood composite pallet to be a variety of plastic pallet, subject to the same requirements as plastic units? For one thing, calling wood composite plastic is stretching things a bit. According to pallet pooler CHEP, there's actually very little plastic in wood composite-block pallets; they are 95 percent wood.
Furthermore, not all plastics are the same. The plastic in the adhesives used in the wood composite blocks is known as a thermoset. "A thermoset doesn't flow like lava; instead, it chars up on the outside," says David Deal, director of product services and industry affairs for CHEP. This means that wood composite blocks react to fire the same way pure blocks of wood do, he says. To confirm this assertion, the NASFM is reviewing the latest evidence as part of the process of revising the CAB.
Then why not just revise the standard to state that wood composite pallets should be considered to be wood pallets? Lake says an NFPA technical committee did review a proposal to change the definition of wood pallets in NFPA 13 during a previous revision cycle but decided it was unwarranted at the time. He adds, however, that the technical committee would be willing to revisit the issue if the NASFM's research shows a compelling reason to do so.
Several pallet suppliers say the confusion surrounding fire performance could be eliminated if all pallets were simply required to undergo a burn test and certification process. "There should be a 'meets and exceeds' standard," says Steve Letnich, vice president of sales and marketing of steel pallet manufacturer Worthington Steelpac. But others disagree, contending that testing would be unnecessary as well as burdensome and expensive.
In the absence of such standards, what should conscientious DC managers do? Since different states have different fire codes and regulations, it's best to work closely with local officials to make sure you stay on the right side of the law.
"Basically, the best thing they can do is go to their local fire marshal and ask questions before they build a building, before they talk about what they're going to put in a building," says Letnich, "so they know exactly what type of sprinkler system they're going to require."
another firestorm in the making?
Just as one controversy is being put to rest, another is flaring up. The focus this time, however, isn't wood pallets but plastic ones that use the fire retardant deca-bromine.
Some brominated flame retardants have been linked to health risks like nerve damage and thyroid problems. In fact, fire retardants using pentabromine and octa-bromine have been pulled from the market because of their toxicity. Some researchers say that deca-bromine breaks down into these more toxic forms and that the chemical then leaches into the environment. These concerns have led several states to restrict the use of deca-bromine.
Plastic pallet pooler iGPS, however, disagrees with that assertion, countering that deca-bromine is encapsulated in the resin and that it does not off-gas. The company says that the European Commission's environmental protection authorities evaluated more than 1,000 scientific studies and concluded that there was no need for risk reduction measures related to the use of deca-bromine.
The debate continues. In the meantime, plastic pallet users would be wise to keep an eye on the issue and discuss potential repercussions and alternatives with their pallet companies.
Container traffic is finally back to typical levels at the port of Montreal, two months after dockworkers returned to work following a strike, port officials said Thursday.
Today that arbitration continues as the two sides work to forge a new contract. And port leaders with the Maritime Employers Association (MEA) are reminding workers represented by the Canadian Union of Public Employees (CUPE) that the CIRB decision “rules out any pressure tactics affecting operations until the next collective agreement expires.”
The Port of Montreal alone said it had to manage a backlog of about 13,350 twenty-foot equivalent units (TEUs) on the ground, as well as 28,000 feet of freight cars headed for export.
Port leaders this week said they had now completed that task. “Two months after operations fully resumed at the Port of Montreal, as directed by the Canada Industrial Relations Board, the Montreal Port Authority (MPA) is pleased to announce that all port activities are now completely back to normal. Both the impact of the labour dispute and the subsequent resumption of activities required concerted efforts on the part of all port partners to get things back to normal as quickly as possible, even over the holiday season,” the port said in a release.
The “2024 Year in Review” report lists the various transportation delays, freight volume restrictions, and infrastructure repair costs of a long string of events. Those disruptions include labor strikes at Canadian ports and postal sites, the U.S. East and Gulf coast port strike; hurricanes Helene, Francine, and Milton; the Francis Scott key Bridge collapse in Baltimore Harbor; the CrowdStrike cyber attack; and Red Sea missile attacks on passing cargo ships.
“While 2024 was characterized by frequent and overlapping disruptions that exposed many supply chain vulnerabilities, it was also a year of resilience,” the Project44 report said. “From labor strikes and natural disasters to geopolitical tensions, each event served as a critical learning opportunity, underscoring the necessity for robust contingency planning, effective labor relations, and durable infrastructure. As supply chains continue to evolve, the lessons learned this past year highlight the increased importance of proactive measures and collaborative efforts. These strategies are essential to fostering stability and adaptability in a world where unpredictability is becoming the norm.”
In addition to tallying the supply chain impact of those events, the report also made four broad predictions for trends in 2025 that may affect logistics operations. In Project44’s analysis, they include:
More technology and automation will be introduced into supply chains, particularly ports. This will help make operations more efficient but also increase the risk of cybersecurity attacks and service interruptions due to glitches and bugs. This could also add tensions among the labor pool and unions, who do not want jobs to be replaced with automation.
The new administration in the United States introduces a lot of uncertainty, with talks of major tariffs for numerous countries as well as talks of US freight getting preferential treatment through the Panama Canal. If these things do come to fruition, expect to see shifts in global trade patterns and sourcing.
Natural disasters will continue to become more frequent and more severe, as exhibited by the wildfires in Los Angeles and the winter storms throughout the southern states in the U.S. As a result, expect companies to invest more heavily in sustainability to mitigate climate change.
The peace treaty announced on Wednesday between Isael and Hamas in the Middle East could support increased freight volumes returning to the Suez Canal as political crisis in the area are resolved.
The French transportation visibility provider Shippeo today said it has raised $30 million in financial backing, saying the money will support its accelerated expansion across North America and APAC, while driving enhancements to its “Real-Time Transportation Visibility Platform” product.
The funding round was led by Woven Capital, Toyota’s growth fund, with participation from existing investors: Battery Ventures, Partech, NGP Capital, Bpifrance Digital Venture, LFX Venture Partners, Shift4Good and Yamaha Motor Ventures. With this round, Shippeo’s total funding exceeds $140 million.
Shippeo says it offers real-time shipment tracking across all transport modes, helping companies create sustainable, resilient supply chains. Its platform enables users to reduce logistics-related carbon emissions by making informed trade-offs between modes and carriers based on carbon footprint data.
"Global supply chains are facing unprecedented complexity, and real-time transport visibility is essential for building resilience” Prashant Bothra, Principal at Woven Capital, who is joining the Shippeo board, said in a release. “Shippeo’s platform empowers businesses to proactively address disruptions by transforming fragmented operations into streamlined, data-driven processes across all transport modes, offering precise tracking and predictive ETAs at scale—capabilities that would be resource-intensive to develop in-house. We are excited to support Shippeo’s journey to accelerate digitization while enhancing cost efficiency, planning accuracy, and customer experience across the supply chain.”
ReposiTrak, a global food traceability network operator, will partner with Upshop, a provider of store operations technology for food retailers, to create an end-to-end grocery traceability solution that reaches from the supply chain to the retail store, the firms said today.
The partnership creates a data connection between suppliers and the retail store. It works by integrating Salt Lake City-based ReposiTrak’s network of thousands of suppliers and their traceability shipment data with Austin, Texas-based Upshop’s network of more than 450 retailers and their retail stores.
That accomplishment is important because it will allow food sector trading partners to meet the U.S. FDA’s Food Safety Modernization Act Section 204d (FSMA 204) requirements that they must create and store complete traceability records for certain foods.
And according to ReposiTrak and Upshop, the traceability solution may also unlock potential business benefits. It could do that by creating margin and growth opportunities in stores by connecting supply chain data with store data, thus allowing users to optimize inventory, labor, and customer experience management automation.
"Traceability requires data from the supply chain and – importantly – confirmation at the retail store that the proper and accurate lot code data from each shipment has been captured when the product is received. The missing piece for us has been the supply chain data. ReposiTrak is the leader in capturing and managing supply chain data, starting at the suppliers. Together, we can deliver a single, comprehensive traceability solution," Mark Hawthorne, chief innovation and strategy officer at Upshop, said in a release.
"Once the data is flowing the benefits are compounding. Traceability data can be used to improve food safety, reduce invoice discrepancies, and identify ways to reduce waste and improve efficiencies throughout the store,” Hawthorne said.
Under FSMA 204, retailers are required by law to track Key Data Elements (KDEs) to the store-level for every shipment containing high-risk food items from the Food Traceability List (FTL). ReposiTrak and Upshop say that major industry retailers have made public commitments to traceability, announcing programs that require more traceability data for all food product on a faster timeline. The efforts of those retailers have activated the industry, motivating others to institute traceability programs now, ahead of the FDA’s enforcement deadline of January 20, 2026.
Online grocery technology provider Instacart is rolling out its “Caper Cart” AI-powered smart shopping trollies to a wide range of grocer networks across North America through partnerships with two point-of-sale (POS) providers, the San Francisco company said Monday.
Instacart announced the deals with DUMAC Business Systems, a POS solutions provider for independent grocery and convenience stores, and TRUNO Retail Technology Solutions, a provider that powers over 13,000 retail locations.
Terms of the deal were not disclosed.
According to Instacart, its Caper Carts transform the in-store shopping experience by letting customers automatically scan items as they shop, track spending for budget management, and access discounts directly on the cart. DUMAC and TRUNO will now provide a turnkey service, including Caper Cart referrals, implementation, maintenance, and ongoing technical support – creating a streamlined path for grocers to bring smart carts to their stores.
That rollout follows other recent expansions of Caper Cart rollouts, including a pilot now underway by Coles Supermarkets, a food and beverage retailer with more than 1,800 grocery and liquor stores throughout Australia.
Instacart’s core business is its e-commerce grocery platform, which is linked with more than 85,000 stores across North America on the Instacart Marketplace. To enable that service, the company employs approximately 600,000 Instacart shoppers who earn money by picking, packing, and delivering orders on their own flexible schedules.
The new partnerships now make it easier for grocers of all sizes to partner with Instacart, unlocking a modern shopping experience for their customers, according to a statement from Nick Nickitas, General Manager of Local Independent Grocery at Instacart.
In addition, the move also opens up opportunities to bring additional Instacart Connected Stores technologies to independent retailers – including FoodStorm and Carrot Tags – continuing to power innovation and growth opportunities for retailers across the grocery ecosystem, he said.