The Regional Pallet Imbalance No One Talks About

Lumber prices get the blame — but supply imbalance is the real story. Every time pallet prices spike, most people blame lumber costs. But the real reason is simpler — and more regional. Pallet supply doesn’t move evenly across the U.S. When freight runs one way, pallets and custom wooden crates pile up in the wrong places.

 

What’s Happening

  • The Midwest overproduces new pallets and heat-treated skids, thanks to a dense manufacturing base.

  • The West Coast consumes more than it returns, especially in food, beverage, and export crating.

  • The South has a surplus of heat-treated wood for export, but thinner pallet repair and custom crating networks.

That’s why a recycled pallet core might cost $9 in Wisconsin and $15 in California. It’s not just lumber — it’s logistics.

 

How to Hedge Against It

  1. Partner with multi-region pallet suppliers who can rebalance inventory between over- and under-supplied areas.

  2. Use consolidation hubs — ship full trailer loads west with customer freight or palletized crates to offset cost.

  3. Forecast seasonally — Q2 construction and produce surges drain supply faster than ISPM 15 certified pallet producers can react.

 

Takeaway

Pallet prices don’t move on wood alone — they move with freight flows.

Shippers who understand regional pallet and crating balance can secure better pricing and stronger availability before the next market shift.

At Pallet Pro by Envoy, we source directly from top pallet manufacturers in Chicago, Wisconsin, and throughout the Midwest to deliver custom pallets and crates, heat-treated pallets for export, and ISPM 15 compliant shipping crates quickly and cost-efficiently.

Request a pallet consultation to see how your supply stacks up.

Previous
Previous

HT vs. KD Pallets: The Compliance Difference That Stops Mold and Ship Rejections

Next
Next

When the Equipment Matters, So Should the Crate