Mondiale VGL has received notifications from both CHEP and Loscam about the current critical shortage of pallets in both the global and national networks. This shortage is attributed to:
- Ongoing stock level growth, leading to the demand of pallets outstripping supply.
- Once released, pallets are being held in the market longer than usual which is resulting in fewer pallet returns (Source: CHEP Notification, September 2021)
- There is currently a worldwide shortage of timber impacting the ability of pallet manufacturers to produce more (Source: Australasian Timber, September 2021; ABC News, August 2021).
- A stressed and congested global supply chain, with long waiting times for timber shipments (Source: Australian Financial Review, May 2021).
It is anticipated that this constrained supply is likely to continue next year.
Mondiale VGL’s container unpacking capability has been severely affected by this pallet shortage. We are buying both new and used pallets at inflated prices to maintain service continuity, but these are becoming increasingly scarce, and the quality is extremely poor. Mondiale VGL is continuing to actively look for alternatives to minimise the impact on our operations and customer shipments.
The current pallet shortage and its resulting impacts are outside of Mondiale VGL’s reasonable control and therefore constitutes as a force majeure. Please be advised that as a force majeure event, Mondiale VGL declares indemnity against detention charges that are directly caused by this critical pallet shortage.
Please reach out to your local Mondiale VGL Representative if you have any questions or concerns.
Thank you for your continued support.
National Logistics Manager
Mondiale VGL Pty Ltd