Pallet prices 2024: Stay informed with Fastmarkets data

Fastmarkets is excited to introduce our new series of western softwood GMA Grade A pallet prices and analytics!

Launched in September 2024, Fastmarkets now publishes western softwood GMA Grade A pallet prices in six key delivered markets: Seattle, San Francisco, Los Angeles, Chicago, Dallas-Fort Worth and New York City. Leveraging our existing Random Lengths dimension lumber data expertise, we are perfectly positioned to offer the first coverage of the US pallet market by any price reporting agency (PRA).

Grocery Manufacturers Association (GMA) pallets are the most common pallet size in the United States. While dimensions on the marketplace vary, the specifications for Fastmarkets western softwood GMA Grade A delivered prices are as follows:

• Western softwood of any species
• A Grade (also referred to on the market as #1), which consists of new construction in good condition
• An overall footprint of 48” by 40”
• Four-way forklift entry with two notches on the side
• Top and bottom deck boards are a minimum of 1/2 inch thick
• A 5 1/2″ x 40″ board on each end of the pallet top, and five 3 1/2″ x 40″ boards in the center
• A 5 1/2″ x 40″ board on each end of the pallet bottom, and three 3 1/2″ x 40″ boards between the notches

Fastmarkets launched the pallet newsletter this September in response to high levels of inquiry into pallet pricing by our existing customer base. The number of wood pallets in circulation continues to grow with recent estimates of the total Central and North American market size sitting around 3 billion. Considering a combined total population of the US, Canada and Mexico of around 496 million people – that’s six pallets per person!

While the pallet market’s size is immense, up to the present accurate pricing data and analysis has been hard to come by. Fastmarkets is in a unique position to add transparency and value to the market. Around 80% of the pallet market now utilizes softwood lumber and Random Lengths (a Fastmarkets company) is the industry leading dimension and low-grade lumber benchmark publisher.

The six delivered markets were chosen after several rounds of feedback from western softwood lumber producers. The prices are published in a range. Notably, extremely poor quality and highly modified or premium pallets, while considered as indicators, are not included in the final published range.

Separate benchmarks will be considered on an ongoing basis in order to add more clarity to the current state of the GMA Grade A markets. The publication of used pallet prices will be considered as well. Additionally, Fastmarkets recently acquired the industry leading Hardwood Market Report. Hardwood pallet prices will be coming soon!

GMA pallets are utilized by a wide variety of industries with most sectors of the economy interacting with them on some level. Fastmarkets pallet data and analytics is an excellent resource for pallet manufacturers, pallet traders, the manufacturing sector, the agricultural sector, and any entity dealing with palletized cargo.

Being clear about our price assessment and index process is important. You can be confident that our pricing process is impartial, market-reflective and market-aligned. At Fastmarkets, our core methodology and expertise has defined us for more than 130 years. We pride ourselves on being transparent with our clients about how we assess our prices, so we publish every single methodology and price specification that our pricing teams use.

Verified

Our price reporters are required to follow robust pricing procedures, clearly defined methodologies and price specifications during their market reporting and pricing sessions. All calculations or assessments are verified through our integrated peer review system, to guarantee unrivaled quality control and compliance.

Independent

We continually develop and review our methodologies in consultation with industry participants. Our aim is to adopt product specifications, trading terms, conditions or other factors that reflect and are representative of typical working practices in the industry.

Confidential

Markets are assessed by experienced price reporters each day, via phone calls, emails, texts, etc to a wide variety of market participants on both the buy and sell sides of the market. All information received from data submitters is kept confidential in accordance with the data submitter policy (see the section marked “confidentiality”).

All data supplied to Fastmarkets is kept confidential in accordance with the data submitter policy and stored in our secure online pricing database system MInD (Market Information Database). Fastmarkets may sign a Data Submitter Agreement (DSA) with any data provider, if requested to do so, to maximize the number of data points collected for inclusion in the assessment process.

In addition to the foregoing internal methodology, Fastmarkets is independently and regularly audited by the third-party International Organization of Securities Commissions (IOSCO). IOSCO principles create an overarching framework for benchmarks, articulating guidance and principles ensuring transparency and openness. The assurance review process examines a firm’s governance and controls framework, policies, and methodologies in scope to verify their adherence to the PRA Principles.

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