Pallets progress
April 1st 2006

Does legislation requiring the treatment of wood packaging to be pest free mean the end of wood pallets as we know them? Plastic pallet producer, Schoeller Arca Systems looks at the issues

The pallet is the base of unit-load materials handling, the fundamental method of transporting, distributing and storing almost all products. Pallets are traditionally made from wood. However, the USA, Australia, Canada, New Zealand and China all require wooden pallets to be certified pest free. Wooden pallets have to be treated in order to be pest free. The legislation surrounding the treatment of wood packaging, along with new technology, has resulted in a growing market for plastic pallets.

Packaging made from unprocessed raw wood is a pathway for the introduction and spread of pests. Because the origin of wood packaging material is difficult to determine, globally approved measures that are intended to significantly reduce the risk of pests being spread, are being introduced.

The pests concerned are known as quarantine pests, the worst example being the Asian Longhorn beetle. A native of China, the beetle arrived in North America in wood packaging material. It is also been reported in Austria, France and Germany. In all cases, wooden packaging is believed to have been the pathway. Quarantine pests present major risks to forests and woodland, killing or damaging large areas.

The internationally recognised standard that regulates wood packaging used in international trade is ISPM 15. Most countries have adopted this: New Zealand in 2003, Australia in 2004 and the EU in March 2005. By July 2006 all wood packaging imported into the US, Mexico and Canada must be ISPM 15 compliant. China will also implement the standard in 2006.

Fraudulent marking fears

Compliance with ISPM 15 for wood packaging allows for two treatment options: heat treatment, where the material is heated to a minimum of 56°C for a minimum of 30 minutes. The other is Methyl Bromide Fumigation, where the packaging is fumigated with the chemical.

Packaging which complies with the standard is marked with an official, recognised symbol. This identifies the country of origin, the packaging producer and whether it has been heat treated or fumigated. However, this system is not foolproof and there are fears that fraudulent marking of untreated pallets will occur.

In 1999, the United States Department of Agriculture admitted that the best method of preventing importation of pests is to phase out raw wood packaging materials.

The USDA is now being sued by four American states to force its hand in banning such packaging. The action argues that the USDA did not consider banning wood packaging prior to introducing ISPM 15.

They also argue that Methyl Bromide Fumigation is damaging to the environment.

If pallets made from raw wood are phased out, there are two alternatives: pallets made from manufactured wood such as plywood, or plastic pallets made from new or recycled plastic.

Plastic pallets have been used in Europe for 25 years, and have 8% of the total European pallet market. New technology and low cost means that this share is growing. The advantages of plastic pallets are that they are up to 40% lighter than wooden pallets, they do not absorb moisture so have a constant weight, and they are safe to handle, with no nails or splinters.

Suitability of a plastic pallet for the right application depends on five factors. The pallet must be able to support the load throughout the distribution system and be able to resist deformation under load. It must withstand the rigours of the operational environment and achieve one or many trips, depending on the distribution system. The pallet has to be compatible with packaging and materials handling equipment, and the price of the pallet should balance with the value of the product being delivered, to make it an economical purchase.

Space saving

Additional features of plastic pallets are that they are weather resistant; stack and nest for excellent space utilisation; can be easily repaired or replaced; can be uniquely coloured or branded.

Schoeller Arca Systems has recently bought Basic Industrial Plastic Pallets (BIPP), making it the largest plastic pallet producer in the world. Its new plastic pallet range includes both lightweight and heavy-duty open-deck pallets, heavy-duty closed pallets, and heavy-duty hygienic pallets for clean rooms, the pharmaceutical and food/beverage industries. There are over 100 products in the range, with a variety of sizes and capabilities, and fast delivery from stock.

Tim Ansell, Managing Director of Schoeller Arca Systems in the UK commented: "As they do not require treatment for pests, and are less expensive over their working life than wooden ones, plastic pallets are a viable alternative to wood and are becoming increasingly popular within the logistics industry. We offer a complete range of plastic pallets, available to buy throughout Europe at competitive prices."

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