Significant pressure is expected in Europe on the supply of pallets and packaging

The conflict in Ukraine is expected to put significant pressure on timber supply. The cessation of production in Ukraine, which is a major supplier of wood, as well as the cessation of exports from Russia and Belarus will impact the sector of wooden pallets and packaging.

 

FEFPEB (European Federation of Wooden Pallet & Packaging Manufacturers) announced that last year Ukraine exported more than 2.7 million m3 of sawn softwood, much of which is destined for the manufacture of pallets in Europe and wooden packaging. In particular in France, Germany, Italy, the Netherlands and Poland. Ukraine also produced and exported around 15 million pallets mainly to Europe.

 

The cessation of production in Ukraine will have direct repercussions on the 3 main importers of softwood which are Hungary, Italy and Germany. As well as an indirect impact in all other European countries by destabilizing the market, exacerbating competition for wood reserves and driving prices up.

 

The situation is further complicated by the trade sanctions decided against Russia and Belarus. Russia exports about 4.5 million m3 of softwood to the EU; Estonia, Germany and Finland are the main importers. Belarus exports approximately 3.1 million m3 (spruce and pine combined).

 

The other wood suppliers, such as Scandinavia, Germany and the Baltic States, will only be able to cover a small part of the missing quantities.

 

"The terrible events unfolding in Ukraine have had an immediate impact on industries of all kinds. The usual supplies of wood needed for the production and repair of wooden pallets and packaging have been hit hard, and their availability has been considerably reduced," underlined Fons Ceelaert, the general secretary of the FEFPEB. Stating that he expects a rise in the price of wood and that companies in the sector are working to maintain the continuity of production of pallets and packaging.

 

 

source : fefpeb eu