An arcane technical bulletin on sprinkler systems ignited a firestorm among pallet users before being withdrawn this spring.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.
The Port of Oakland has been awarded $50 million from the U.S. Department of Transportation’s Maritime Administration (MARAD) to modernize wharves and terminal infrastructure at its Outer Harbor facility, the port said today.
Those upgrades would enable the Outer Harbor to accommodate Ultra Large Container Vessels (ULCVs), which are now a regular part of the shipping fleet calling on West Coast ports. Each of these ships has a handling capacity of up to 24,000 TEUs (20-foot containers) but are currently restricted at portions of Oakland’s Outer Harbor by aging wharves which were originally designed for smaller ships.
According to the port, those changes will let it handle newer, larger vessels, which are more efficient, cost effective, and environmentally cleaner to operate than older ships. Specific investments for the project will include: wharf strengthening, structural repairs, replacing container crane rails, adding support piles, strengthening support beams, and replacing electrical bus bar system to accommodate larger ship-to-shore cranes.
The Florida logistics technology startup OneRail has raised $42 million in venture backing to lift the fulfillment software company its next level of growth, the company said today.
The “series C” round was led by Los Angeles-based Aliment Capital, with additional participation from new investors eGateway Capital and Florida Opportunity Fund, as well as current investors Arsenal Growth Equity, Piva Capital, Bullpen Capital, Las Olas Venture Capital, Chicago Ventures, Gaingels and Mana Ventures. According to OneRail, the funding comes amidst a challenging funding environment where venture capital funding in the logistics sector has seen a 90% decline over the past two years.
The latest infusion follows the firm’s $33 million Series B round in 2022, and its move earlier in 2024 to acquire the Vancouver, Canada-based company Orderbot, a provider of enterprise inventory and distributed order management (DOM) software.
Orlando-based OneRail says its omnichannel fulfillment solution pairs its OmniPoint cloud software with a logistics as a service platform and a real-time, connected network of 12 million drivers. The firm says that its OmniPointsoftware automates fulfillment orchestration and last mile logistics, intelligently selecting the right place to fulfill inventory from, the right shipping mode, and the right carrier to optimize every order.
“This new funding round enables us to deepen our decision logic upstream in the order process to help solve some of the acute challenges facing retailers and wholesalers, such as order sourcing logic defaulting to closest store to customer to fulfill inventory from, which leads to split orders, out-of-stocks, or worse, cancelled orders,” OneRail Founder and CEO Bill Catania said in a release. “OneRail has revolutionized that process with a dynamic fulfillment solution that quickly finds available inventory in full, from an array of stores or warehouses within a localized radius of the customer, to meet the delivery promise, which ultimately transforms the end-customer experience.”
Commercial fleet operators are steadily increasing their use of GPS fleet tracking, in-cab video solutions, and predictive analytics, driven by rising costs, evolving regulations, and competitive pressures, according to an industry report from Verizon Connect.
Those conclusions come from the company’s fifth annual “Fleet Technology Trends Report,” conducted in partnership with Bobit Business Media, and based on responses from 543 fleet management professionals.
The study showed that for five consecutive years, at least four out of five respondents have reported using at least one form of fleet technology, said Atlanta-based Verizon Connect, which provides fleet and mobile workforce management software platforms, embedded OEM hardware, and a connected vehicle device called Hum by Verizon.
The most commonly used of those technologies is GPS fleet tracking, with 69% of fleets across industries reporting its use, the survey showed. Of those users, 72% find it extremely or very beneficial, citing improved efficiency (62%) and a reduction in harsh driving/speeding events (49%).
Respondents also reported a focus on safety, with 57% of respondents citing improved driver safety as a key benefit of GPS fleet tracking. And 68% of users said in-cab video solutions are extremely or very beneficial. Together, those technologies help reduce distracted driving incidents, improve coaching sessions, and help reduce accident and insurance costs, Verizon Connect said.
Looking at the future, fleet management software is evolving to meet emerging challenges, including sustainability and electrification, the company said. "The findings from this year's Fleet Technology Trends Report highlight a strong commitment across industries to embracing fleet technology, with GPS tracking and in-cab video solutions consistently delivering measurable results,” Peter Mitchell, General Manager, Verizon Connect, said in a release. “As fleets face rising costs and increased regulatory pressures, these technologies are proving to be indispensable in helping organizations optimize their operations, reduce expenses, and navigate the path toward a more sustainable future.”
Businesses engaged in international trade face three major supply chain hurdles as they head into 2025: the disruptions caused by Chinese New Year (CNY), the looming threat of potential tariffs on foreign-made products that could be imposed by the incoming Trump Administration, and the unresolved contract negotiations between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX), according to an analysis from trucking and logistics provider Averitt.
Each of those factors could lead to significant shipping delays, production slowdowns, and increased costs, Averitt said.
First, Chinese New Year 2025 begins on January 29, prompting factories across China and other regions to shut down for weeks, typically causing production to halt and freight demand to skyrocket. The ripple effects can range from increased shipping costs to extended lead times, disrupting even the most well-planned operations. To prepare for that event, shippers should place orders early, build inventory buffers, secure freight space in advance, diversify shipping modes, and communicate with logistics providers, Averitt said.
Second, new or increased tariffs on foreign-made goods could drive up the cost of imports, disrupt established supply chains, and create uncertainty in the marketplace. In turn, shippers may face freight rate volatility and capacity constraints as businesses rush to stockpile inventory ahead of tariff deadlines. To navigate these challenges, shippers should prepare advance shipments and inventory stockpiling, diversity sourcing, negotiate supplier agreements, explore domestic production, and leverage financial strategies.
Third, unresolved contract negotiations between the ILA and the USMX will come to a head by January 15, when the current contract expires. Labor action or strikes could cause severe disruptions at East and Gulf Coast ports, triggering widespread delays and bottlenecks across the supply chain. To prepare for the worst, shippers should adopt a similar strategy to the other potential January threats: collaborate early, secure freight, diversify supply chains, and monitor policy changes.
According to Averitt, companies can cushion the impact of all three challenges by deploying a seamless, end-to-end solution covering the entire path from customs clearance to final-mile delivery. That strategy can help businesses to store inventory closer to their customers, mitigate delays, and reduce costs associated with supply chain disruptions. And combined with proactive communication and real-time visibility tools, the approach allows companies to maintain control and keep their supply chains resilient in the face of global uncertainties, Averitt said.
Bloomington, Indiana-based FTR said its Trucking Conditions Index declined in September to -2.47 from -1.39 in August as weakness in the principal freight dynamics – freight rates, utilization, and volume – offset lower fuel costs and slightly less unfavorable financing costs.
Those negative numbers are nothing new—the TCI has been positive only twice – in May and June of this year – since April 2022, but the group’s current forecast still envisions consistently positive readings through at least a two-year forecast horizon.
“Aside from a near-term boost mostly related to falling diesel prices, we have not changed our Trucking Conditions Index forecast significantly in the wake of the election,” Avery Vise, FTR’s vice president of trucking, said in a release. “The outlook continues to be more favorable for carriers than what they have experienced for well over two years. Our analysis indicates gradual but steadily rising capacity utilization leading to stronger freight rates in 2025.”
But FTR said its forecast remains unchanged. “Just like everyone else, we’ll be watching closely to see exactly what trade and other economic policies are implemented and over what time frame. Some freight disruptions are likely due to tariffs and other factors, but it is not yet clear that those actions will do more than shift the timing of activity,” Vise said.
The TCI tracks the changes representing five major conditions in the U.S. truck market: freight volumes, freight rates, fleet capacity, fuel prices, and financing costs. Combined into a single index indicating the industry’s overall health, a positive score represents good, optimistic conditions while a negative score shows the inverse.