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.
With the rise of the environmentally conscious consumer and the growing importance of sustainability to corporate boardrooms, more and more companies are looking to reduce their carbon footprint and the amount of waste they send to the landfill.
One area that is increasingly being viewed through a green lens is packaging. Pallet companies and trade groups have responded by touting their particular type of pallet—wood, corrugated, plastic, or metal—as a sustainable choice. But if you dig a little deeper, you'll find that each material has both strengths and weaknesses.
Here's a rundown of each type of pallet's impact on the planet.
WOOD IS GOOD
Wood is by far the most common type of material being used to make pallets today, and it has a lot to recommend it as far as sustainability goes. Wood is a renewable resource, and, according to the National Wooden Pallet and Container Association (NWPCA), it requires far less energy to produce than any other common type of pallet material. "You plant a tree, you leave it, it grows," says Patrick Atagi, the group's executive vice president of advocacy and external affairs.
Of course, it's not quite as simple as that. Trees do not grow overnight; it takes 30 to 40 years before a tree is large enough to be harvested for wood. But decades of forest management efforts mean that the United States is in little danger of running low on wood, even if housing starts return to the levels seen during the housing bubble. According to the "National Report on Sustainable Forests" published by the U.S. Forest Service in 2010, the number of acres of forest in the United States has remained stable for the last 50 years and the amount of wood being produced per acre has actually increased.
Wood pallets are also reusable and/or recyclable. If damaged, a wooden pallet can easily be repaired—typically, all that's required is to pull off the old board and hammer on a new one. When a pallet can no longer be repaired or remanufactured into a recycled pallet, it can be reprocessed and the wood fibers used in such products as mulch, particleboard, and animal bedding. All of these end-of-life efforts, however, require that the pallet user have effective waste management processes in place, typically working with a pallet recycler. (Companies looking to locate a pallet recycler near their facilities can search the online directory available on NWPCA's website.)
THE INCREDIBLE LIGHTNESS OF CARDBOARD
Not everyone believes that wood pallets are the best choice for the environment. A nonprofit organization launched last year called Change the Pallet is making aggressive claims that switching to corrugated cardboard pallets could greatly reduce carbon emissions. The group was heavily involved in an attempt to pass a bill in Oregon's House of Representatives to require state agencies to switch to cardboard pallets where appropriate. While the bill never made it out of committee, the governor did approve a pilot with the Department of Corrections.
The reason that cardboard pallets lead to reductions in carbon emissions, according to the group's executive director, Adam Pener, is weight. While wood pallets typically weigh around 50 pounds, cardboard pallets weigh about 10. When trucks transport less weight, he says, they consume less fuel.
A case in point is the global furniture company Ikea, which made headlines in 2012 when it announced an initiative to switch from wood pallets to cardboard or paperboard pallets. According to Ikea, since 2012, the company has cut its carbon emissions by more than 300,000 metric tons and reduced the number of trucks it uses by 15 percent, while transporting the same volume of goods.
The one area where cardboard pallets do not measure up to their competitors is in length of life. Although cardboard pallets can be made as strong as wood, they are typically designed to be used only once. Skeptics have also expressed concern about their durability and water resistance, although Pener insists that they can easily be treated with a waterproof coating.
Cardboard pallets, however, are much easier to recycle than other pallet types. According to Pener, companies can simply toss their cardboard pallets into a baler and recycle them along with their other corrugate.
PLASTICS FOR LIFE
In contrast to their counterparts over on the cardboard pallet side, makers of plastic pallets stake their sustainability claims on their pallets' longevity. According to Adam Gurga, national account manager, consumer packaged goods supply chains, for the plastic pallet manufacturer Rehrig Pacific, plastic pallets often last five to six years. "And I've been in some of our customers' facilities where they're still using pallets they purchased 10 years ago," he says.
That durability also helps the pallet to better protect the product it is transporting. The less damage that occurs to both the pallet and the product, the fewer resources will be consumed in making replacements. On top of that, companies will be minimizing their carbon footprint because they won't be transporting as many replacement pallets and goods.
No matter how durable a pallet is, however, if you run it over with an 8,000-pound forklift, it's going to break. While some plastic pallets are repairable, most are not. Still, plastic pallets can be recycled, and many plastic pallet companies will even pick up the damaged units from you. The pallets are ground down into plastic resin, which can be reused to make recycled plastic pallets (although the quality is not as high as it is with new ones) or other plastic products.
That said, potential plastic pallet users must weigh the environmental costs of simply manufacturing plastic. Unlike wood or cardboard, plastic pallets are typically made from high-density polyethylene or polypropylene, which requires nonrenewable resources such as oil or natural gas to produce.
Finally, for plastic pallets to be truly sustainable (not just environmentally but also economically), companies either need to use a pooler or have some way of guaranteeing that they can get their pallets back.
ALUMINUM REINCARNATION
The weight of most metal pallets makes them unsuitable for many applications. Aluminum pallets, however, weigh on average less than 40 pounds, and aluminum pallet companies like to tout their environmental benefits.
To be sure, the environmental cost of producing aluminum is high. For starters, the raw material, bauxite, must be mined from the earth. On top of that, processing and manufacturing aluminum consumes a great deal of energy.
However, once it is produced, aluminum is "infinitely recyclable," in the words of Peter Johnson, president of Eco Aluminum Pallets. And unlike the situation with plastic, the recycling process does not degrade the quality of aluminum. So one way to lessen the pallets' environmental impact is to use pallets made out of recycled aluminum. Recycled aluminum is readily available, and Johnson has no concerns about the supply's decreasing.
Aluminum pallets are also durable. Eco Aluminum Pallets, for example, guarantees its pallets for 10 years. While the majority of metal pallets are nonrepairable, Eco Aluminum Pallets has created a repairable version that is riveted together.
Aluminum pallets are not for everyone, however. They are best suited for closed-loop or captive environments, where the company can maintain control of the pallet and runs little risk of losing a valuable asset.
THE THREE Rs
If you take a close look at each type of pallet, you'll see that there are pluses and minuses for each in terms of sustainability. The best advice might be to evaluate which type of pallet makes the most sense for your operation and product. It might be that a change could benefit your particular operation.
But no matter what type of pallet they use, most companies could benefit from thinking about their pallets in terms of the three Rs: reduce, reuse, and recycle.
Companies can start by asking themselves whether there are ways they can reduce the number of pallets they use. For example, can they redesign their pallet load so they can add an extra layer of product on the pallet? The more product you get on one pallet, the fewer pallets you use (and ultimately, the fewer trucks you'll need). This means fewer resources used to create the pallet itself and fewer trucks on the road, which cuts down on carbon emissions. (For a few examples, see "Six small packaging changes that can save big money,"DC Velocity, March 2016.)
When it comes to reuse, are there ways the company can get more use out of its pallets? Could its pallets be designed to last longer, maybe by using a higher-quality material? Many wood pallet companies can use special pallet design software to create a pallet that is optimized to your needs. In addition, effective education on pallet handling—particularly for those who operate pallet jacks and forklift trucks—can reduce the amount of damage that a pallet sustains and the number of replacement pallets needed.
Finally, does the company have an effective recycling program in place for pallets that have reached the end of their life? And do your employees know what that policy is?
Such changes may have as much to do with creating a sustainable pallet operation as the type of material that the pallets are made of.
Supply chain planning (SCP) leaders working on transformation efforts are focused on two major high-impact technology trends, including composite AI and supply chain data governance, according to a study from Gartner, Inc.
"SCP leaders are in the process of developing transformation roadmaps that will prioritize delivering on advanced decision intelligence and automated decision making," Eva Dawkins, Director Analyst in Gartner’s Supply Chain practice, said in a release. "Composite AI, which is the combined application of different AI techniques to improve learning efficiency, will drive the optimization and automation of many planning activities at scale, while supply chain data governance is the foundational key for digital transformation.”
Their pursuit of those roadmaps is often complicated by frequent disruptions and the rapid pace of technological innovation. But Gartner says those leaders can accelerate the realized value of technology investments by facilitating a shift from IT-led to business-led digital leadership, with SCP leaders taking ownership of multidisciplinary teams to advance business operations, channels and products.
“A sound data governance strategy supports advanced technologies, such as composite AI, while also facilitating collaboration throughout the supply chain technology ecosystem,” said Dawkins. “Without attention to data governance, SCP leaders will likely struggle to achieve their expected ROI on key technology investments.”
The British logistics robot vendor Dexory this week said it has raised $80 million in venture funding to support an expansion of its artificial intelligence (AI) powered features, grow its global team, and accelerate the deployment of its autonomous robots.
A “significant focus” continues to be on expanding across the U.S. market, where Dexory is live with customers in seven states and last month opened a U.S. headquarters in Nashville. The Series B will also enhance development and production facilities at its UK headquarters, the firm said.
The “series B” funding round was led by DTCP, with participation from Latitude Ventures, Wave-X and Bootstrap Europe, along with existing investors Atomico, Lakestar, Capnamic, and several angels from the logistics industry. With the close of the round, Dexory has now raised $120 million over the past three years.
Dexory says its product, DexoryView, provides real-time visibility across warehouses of any size through its autonomous mobile robots and AI. The rolling bots use sensor and image data and continuous data collection to perform rapid warehouse scans and create digital twins of warehouse spaces, allowing for optimized performance and future scenario simulations.
Originally announced in September, the move will allow Deutsche Bahn to “fully focus on restructuring the rail infrastructure in Germany and providing climate-friendly passenger and freight transport operations in Germany and Europe,” Werner Gatzer, Chairman of the DB Supervisory Board, said in a release.
For its purchase price, DSV gains an organization with around 72,700 employees at over 1,850 locations. The new owner says it plans to investment around one billion euros in coming years to promote additional growth in German operations. Together, DSV and Schenker will have a combined workforce of approximately 147,000 employees in more than 90 countries, earning pro forma revenue of approximately $43.3 billion (based on 2023 numbers), DSV said.
After removing that unit, Deutsche Bahn retains its core business called the “Systemverbund Bahn,” which includes passenger transport activities in Germany, rail freight activities, operational service units, and railroad infrastructure companies. The DB Group, headquartered in Berlin, employs around 340,000 people.
“We have set clear goals to structurally modernize Deutsche Bahn in the areas of infrastructure, operations and profitability and focus on the core business. The proceeds from the sale will significantly reduce DB’s debt and thus make an important contribution to the financial stability of the DB Group. At the same time, DB Schenker will gain a strong strategic owner in DSV,” Deutsche Bahn CEO Richard Lutz said in a release.
Transportation industry veteran Anne Reinke will become president & CEO of trade group the Intermodal Association of North America (IANA) at the end of the year, stepping into the position from her previous post leading third party logistics (3PL) trade group the Transportation Intermediaries Association (TIA), both organizations said today.
Meanwhile, TIA today announced that insider Christopher Burroughs would fill Reinke’s shoes as president & CEO. Burroughs has been with TIA for 13 years, most recently as its vice president of Government Affairs for the past six years, during which time he oversaw all legislative and regulatory efforts before Congress and the federal agencies.
Before her four years leading TIA, Reinke spent two years as Deputy Assistant Secretary with the U.S. Department of Transportation and 16 years with CSX Corporation.
Serious inland flooding and widespread power outages are likely to sweep across Florida and other Southeast states in coming days with the arrival of Hurricane Helene, which is now predicted to make landfall Thursday evening along Florida’s northwest coast as a major hurricane, according to the National Oceanic and Atmospheric Administration (NOAA).
While the most catastrophic landfall impact is expected in the sparsely-population Big Bend area of Florida, it’s not only sea-front cities that are at risk. Since Helene is an “unusually large storm,” its flooding, rainfall, and high winds won’t be limited only to the Gulf Coast, but are expected to travel hundreds of miles inland, the weather service said. Heavy rainfall is expected to begin in the region even before the storm comes ashore, and the wet conditions will continue to move northward into the southern Appalachians region through Friday, dumping storm total rainfall amounts of up to 18 inches. Specifically, the major flood risk includes the urban areas around Tallahassee, metro Atlanta, and western North Carolina.
In addition to its human toll, the storm could exert serious business impacts, according to the supply chain mapping and monitoring firm Resilinc. Those will be largely triggered by significant flooding, which could halt oil operations, force mandatory evacuations, restrict ports, and disrupt air traffic.
While the storm’s track is currently forecast to miss the critical ports of Miami and New Orleans, it could still hurt operations throughout the Southeast agricultural belt, which produces products like soybeans, cotton, peanuts, corn, and tobacco, according to Everstream Analytics.
That widespread footprint could also hinder supply chain and logistics flows along stretches of interstate highways I-10 and I-75 and on regional rail lines operated by Norfolk Southern and CSX. And Hurricane Helene could also likely impact business operations by unleashing power outages, deep flooding, and wind damage in northern Florida portions of Georgia, Everstream Analytics said.
Before the storm had even touched Florida soil, recovery efforts were already being launched by humanitarian aid group the American Logistics Aid Network (ALAN). In a statement on Wednesday, the group said it is urging residents in the storm's path across the Southeast to heed evacuation notices and safety advisories, and reminding members of the logistics community that their post-storm help could be needed soon. The group will continue to update its Disaster Micro-Site with Hurricane Helene resources and with requests for donated logistics assistance, most of which will start arriving within 24 to 72 hours after the storm’s initial landfall, ALAN said.