The origin of the wood shortage

Despite global efforts to achieve economic reactivation and normalize the supply chain, the export and import of merchandise has not been able to stabilize, with a significant shortage of wood that directly affects large industries.

This situation stems from the cut in the budget for forest reforestation, illegality, excessive rainfall and the Covid-19 pandemic, which halted imports. In addition, a significant sector of the US population, by avoiding spending on vacations, outings to restaurants and entertainment events, used their income to remodel their home, a space that gained strength during the pandemic, since in addition to being a resting place , became a classroom and office. To generate these renovations, the demand for wood increased considerably, affecting the supply of said material, whose industry usually remains stable under normal conditions, according to the information presented by The New York Times.

The present of the industry

According to Marco Antonio Ruiz, president of the National Chamber of the Wood Industry (Canainma), The wood industry foresees a "collapse" in the sector, which will imply price increases in raw materials of up to 50%, affecting all kinds of industries that use wood as a fundamental input for the transport and packaging of their merchandise .

In addition, the traffic jam in the seaports represents another factor that causes the shortage of inputs. In fact, before the pandemic, a ship had a maximum of 12 hours to dock and unload the containers on board – at least 9,000 – while to date it takes up to a week. (ROUTERS, 2021)

For that reason, the cost of maritime transport is through the roof, since before the pandemic, shipping a container used to cost $1,000, while today it could cost up to $10,000, strongly affecting the supply chain of large companies.

The solution to the shortage of wood

For Gabriela Siller, Director of Economic Analysis at Grupo Financiero BASE, the problems in the supply chains will persist, at least until the end of the first quarter of 2022. For this reason, it is essential to make strong decisions that solve supply problems in the short term. of wood for packaging, seeking to stabilize the economic activity of large industries as soon as possible. 

For this reason, and recognizing the undeniable need to use wooden pallets for the transport and storage of goods, due to their long durability, adaptability, resistance and profitable cost-benefit relationship, it is essential to find an answer to the shortage of this input.

Thus, taking advantage of the ability of wood to be reused, the renovation of wooden pallets becomes an effective solution to the problem of shortages, considering that, in this way, it is not necessary to extract more natural resources to achieve this objective. . In addition, this alternative not only generates a positive impact on the environment, by taking advantage of the resources that are already available, but also allows generating large savings for companies, a benefit that will positively impact organizations, especially as a result of the imbalance economy caused by the pandemic.

Given this, Kayak Packaking offers a comprehensive solution to the problem, ensuring the collection of high-volume material in plants, taking advantage of this input to renew the pallets, returning functionality to them at a low cost.

Would you like to know more about this alternative for your industry? Get in touch with us and we will gladly provide you with more details.