Pallet problem due to Brexit: "Every third truck could soon be standing"

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Pallets usually lead a shadowy existence.

Hardly anyone is interested in the means of transport - unless there is a problem.

Then the general public is suddenly shown the importance of the inconspicuous carriers made of wood, plastic or sometimes cardboard for the transport of practically any type of goods.

These days, pallets are getting a lot of attention.

Because in the course of Brexit, trade between the European Union (EU) and Great Britain is threatened with a major pallet problem.

"As a result, every third truck could soon stop," warns Joachim Hasdenteufel, President of the Federal Association for Wood Packaging, Pallets and Export Packaging (HPE).

The background to this is the so-called International Standard for Phytosanitary Measures (ISPM) and there specifically the regulations under Item 15. This FAO standard, i.e. the United Nations Food and Agriculture Organization, regulates the protection of plants and, in Chapter 15, stipulates that packaging materials made of wood in cross-border traffic must be treated against possible pests.

Not even half of the pallets meet the rules

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This requirement is not new, it has even been in place since 2003. In Europe with open borders, however, the standard does not apply within the EU economic area or its trade with Switzerland.

It is different now in the case of Great Britain: Because the country has left the EU, it is considered a third country.

And that's why ISPM-15 must now be implemented and monitored there.

“Many companies have already reacted and are observing the standard.

But there are still quite a number of companies that have not heard of it or simply let it come down to it, ”reports Hasdenteufel in an interview with WELT.

According to HPE estimates, not even half of the pallets that are on the move between Great Britain and the EU currently meet the ISPM requirements.

"The pallets of goods slumbering in warehouses in particular should now be checked urgently," advises Hasenteufel, whose main job is the wooden packaging manufacturer Hapack from Montabaur in Rhineland-Palatinate.

In the end, the responsibility is borne by the exporters on both sides, not the pallet manufacturers and not the shipping companies commissioned.

“We point out the issue to our customers.

In the end, however, it is your decision whether you buy pallets with or without the ISPM standard ”, describes entrepreneur Hasdenteufel.

With heat against insects

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So far, the seal is only mandatory for the so-called Euro pallets.

However, these modes of transport only represent around 20 percent of the market volume.

Another 30 percent are accounted for by the likewise standardized chemical pallets, but by far the largest part are special pallets that are tailored to individual applications with individual dimensions.

Treated packaging has corresponding branding on two sides, which can be easily checked by customs officers: on the one hand, a symbol in the form of a stylized ear of wheat and, on the other hand, a combination of numbers and letters from the pallet manufacturer with country code, approval number and the label HT for "Heat Treatment" , so for the English translation of "heat treatment".

Because to protect against pests, ISPM-15 stipulates that the wood core of newly produced pallets should be exposed to a temperature of over 56 degrees Celsius for at least 30 minutes, for example in a chamber oven.

Alternatively, a microwave treatment can also take place - for one minute at at least 60 degrees.

"In both processes, the protein compounds in insects dissolve, which ultimately causes them to die," explains industry representative Hasdenteufel.

And that prevents global tourism for pests, which often lack natural enemies in new habitats, which is why they can spread quickly there and cause great damage.

A single heat treatment is enough - because experts say the pests only attack fresh wood.

Pallets are often single-use products

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Wooden packaging materials such as pallets are the ideal means of transport in view of the constantly increasing global exchange of goods.

It is estimated that around 500 million pallets are currently in use worldwide, 90 percent of which are made of wood.

The majority of these product carriers are manufactured in Germany.

In any case, in the past five years the production volume in this country has always been around 100 to 110 million pieces, reports the industry association HPE.

Because special pallets, for example for the transport of machines or other bulky goods, can usually only be used once.

And the usage time of standard goods such as Euro pallets is limited, even if they are reused as often as possible.

At some point, however, the damage is too great to ensure safe transport.

So it is reproduced on a large scale year after year.

Empty shelves in supermarkets?

Now, of all things, this most widely used means of transport can become an obstacle in the movement of goods with Great Britain - in addition to the customs regulations that are already hindering trade.

However, inspectors on both sides of the English Channel are still apparently turning a blind eye when it comes to pallets.

“So far, we are not aware of any incidents at the borders where goods have been stopped because of the pallet labeling,” says Jens Müller, who is responsible for organizing road transport at the Dachser logistics company.

But even in the coming weeks, the manager does not expect that this will result in an obstacle to the transport of goods.

In any case, he could not imagine that British customs inspectors, for example with imported food, would run the risk of leaving some empty shelves in the supermarkets because of this formality.

In fact, a strict control of the wood protection mark is likely to be complex and quite time-consuming.

On the one hand, the blocks with the markings could simply not be seen from every point, depending on whether they were stacked across or lengthways on the loading area.

On the other hand, depending on its size and structure, a truck has between 15 and 36 pallet spaces, so there is also a lot to control in quantitative terms.

Pallets as an economic indicator

The customs officers cannot let the issue slide completely, they say.

Especially since the controls also work in trade with other countries.

Hasdenteufel, for example, expects more detailed checks at the border clearance by the summer at the latest.

In the event of complaints, the pallets will then be sent back together with the goods or must be treated at the sender's expense, according to the HPE.

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Nevertheless, neither the manufacturers nor the logisticians are assuming a pallet bottleneck, even if the demand for ISPM-15 goods is rising sharply.

At most, there can be a time delay if pallets have to be re-treated.

"In the long run, the topic will also develop," says Dachser representative Müller.

In a few years there will only be individual copies of the old and untreated wooden pallets.

Hasdenteufel also believes that.

"The customers will soon make no distinction and will switch completely around."

Meanwhile, the industry can use attractive business.

The volume of pallet production in Germany actually increased in the first half of the year, reports the HPE - by 0.7 percent to 55.7 million pieces.

At the same time, the sales value fell by 6.6 percent to 426 million euros.

The second half of the year was then significantly weaker.

"At Hapack we are 20 percent below plan for the year as a whole," reports association president Hasdenteufel of his own company.

After all, December went well again, as did January.

"It seems that Corona is now behind us in our company." That would be a good sign for the economy as a whole.

Because an increasing demand for pallets always means an increasing transport of goods and thus more trade.

Recently there were even problems with the supply of wood.

However, the current winter also contributes to this.

"At Hapack, we expect a plus on at least the missed target figures of the previous year in 2021."