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November-December 2015

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will rise and the availability will continue to diminish. Since so few trailers entered the market during the recession, the pool of available quality used trailers will be very limited. As large corporations have only recently started to replenish their pools it will likely take another few years before the used inventory returns to pre-recession levels. —Submission from one Northeast pallet company. Until we can figure out how to beam Scotty up, freight will continue to be moved on pallets. As small parcel prices continue to climb, organizations will seek out load consolidation and optimization. In turn, leading to more LTL and TL moves that will result in a growing trend of more palletized freight. —Amy Angellotti, Rose Pallet Oil surplus will continue through all of 2016. The excess oil supply will save companies money from the super high cost of fuel in previous years. The price of operating trucks remains high due to the regulations that demand engines to reduce fuel mileage and raise the costs of new truck purchases. But finally, we are seeing some benefits with lower prices at the pump, and expect that to continue through 2016. —Bernie Kamps, Kamps Inc. L umber Trends: A simple educational conversation could star t up the money train. The SPF Market is on a downward trend with the pricing per board foot. As the winter approaches, traditionally hardwood lumber is harder to come by. Consequently, pricing usually goes up around the month of January and February. This may be a lucrative time to educate your customers on the benefits of pine. This is especially true in the Midwest where you're forced to deal with the effects of snow and sawdust. Pine is proven to produce less sawdust, be a cleaner product, retain less moisture and be a viable alternative to dealing with hardwood in the winter months. —Amy Angellotti, Rose Pallet Pallet prices will increase and lumber costs won't be the only reason. The costs of business are going up and pallet manufacturers/ recycler's better be prepared to pass those costs onto the customer. The Obama Administration is poised to pass new laws through executive orders, bypassing Congress, so expect labor-friendly laws to go into effect, i.e. overtime and minimum wage changes. Property and Worker Compensation insurance continues to be tough to get in our industry. Health insurance is increasing (I thought Obamacare was supposed to bring the insurance prices palletcentral.com PalletCentral • November-December 2015 17 iStockPhoto.com/chaluk

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