Status: 04/06/2022 08:29 a.m
Whether medicines, oil or flour – many goods are delivered on pallets to supermarkets or wholesalers. But as a result of the Russian sanctions, German pallet manufacturers are now threatened with a production stop.
Sunflower oil, rapeseed oil and flour are currently in great demand among German consumers. But not only the goods themselves are in danger of becoming scarce, but also the pallets on which they are delivered. In a few weeks, the first companies could be forced to shut down their pallet production, said the Federal Association of Wooden Packaging, Pallets and Export Packaging (HPE) in Bad Honnef.
Wire steel from Russia urgently needed
The reason for this is as obvious as it is curious – and shows the links between the German economy and the Russian economy. Because not only wood is needed for the production of the pallets, but also Russian steel – for the nails. 90 percent of the so-called wire steel, from which the nails used for pallets are made, comes from Russia.
However, steel deliveries are prohibited due to the current Russia sanctions. According to the association, there are no short-term alternatives because special nails are required.
The nail problem joins the wood problem
The predominantly medium-sized industry has been under pressure for months, as the price of a Euro pallet has risen from almost ten euros to around 25 euros since 2019 due to the sharp increase in the cost of wood. Another problem is the nails. This is not about the price, emphasized HPE board member Joachim Hasdenteufel. “It’s about the fact that we can produce anything at all.”
78 nails for one Euro pallet
Pallets have been indispensable in industry and trade for decades. When more than 60 years ago, in 1961, the Euro pallet was developed by the International Union of Railways (UIC) based in Paris, it revolutionized logistics throughout Europe and beyond.
Whether food, electronics or medicines – everything is carried in boxes that are transported on pallets in trucks, freight trains or airplanes. Last year, the German pallet industry produced around 120 million such wooden structures. Incidentally, a Euro pallet requires eleven boards, nine blocks – and 78 nails.