As important as toilet paper: the wooden pallet standard slows down post-Brexit trade

Monday, January 18, 2021

As important as toilet paper
Wooden pallet standard slows post-Brexit trade

Part of the Brexit deal deals with the treatment of wooden pallets. They are an integral part of trading. They are supposed to be freed from pests with a heat process. In EU countries, however, the procedure has not yet established itself, which leads to delivery delays.

Due to a recently prescribed different standard for wooden pallets, the logistics industry is warning of delays in the transport of goods with Great Britain. Many companies have not yet converted to the ISPM-15 standard, which has been required since Brexit, said the Federal Association of Wood Packaging, Pallets, Export Packaging (HPE). In trade between the EU and Great Britain, there have been delays since Brexit, which was completed at the beginning of the year, for example due to new customs regulations.

"It is estimated that not even half of all pallets that are on the move between England and Europe meet the ISPM specifications," said HPE Managing Director Marcus Kirschner. HPE board member Joachim Hasdenteufel said: "This can become a massive obstacle for a long time." Currently, customs officials on both sides of the English Channel turned a blind eye. But when the pallets start to be examined more closely, "every third truck stops," said Hasdenteufel.

For exports to and imports from non-EU countries – with the exception of Switzerland – wooden pallets must be treated according to the ISPM-15 standard. This is to ensure that wood pests are not spread to other ecosystems. To do this, the wood core is heated to 56 degrees Celsius for at least half an hour. The regulation does not apply within the EU.

Pallets are like toilet paper

Great Britain had left the EU internal market and the customs union at the turn of the year. The problem has been known for a long time, emphasized Hasdenteufel. Export-oriented companies in particular often only use pallets with the ISPM-15 standard. Nevertheless, there are many companies that are only now realizing that they have to adapt. "The surprise is surprising," said the managing director of the wood packaging manufacturer Hapack in Montaubaur.

Wooden pallets are an integral part of the trade. Numerous goods are transported on them, food as well as car parts. Pallets are like toilet paper, said Hasdenteufel. "As long as they are there, it's a C article. But if it gets stuck here, it suddenly becomes an A article." However, the industry representative emphasized that there were enough pallets available. As a rule, it is only a matter of post-treating them. This could at most lead to a slight delay, but not to bottlenecks. In the future, only the ISPM-15 standard will probably be used, said Hasdenteufel. "The customers no longer make a distinction."