👉 ePallet Monthly Pallet Market Update | May 2026

PALLET MARKET UPDATE

May Newsletter Highlights:

• Hardwood & Softwood Market Trends

  • Regional Pallet Market Variables

• Fuel & Freight Market Update

• Recycled Pallet Market Update

• Did you know? Automation & Pallet Quality

GREETINGS FROM ePALLET, INC.!

As we move into the summer months, many companies remain focused on improving efficiency, controlling costs, and maintaining reliable supply chain operations.

At ePallet, we work to be more than a pallet supplier by providing dependable service, responsive support, and value-driven solutions tailored to your operation. Through pallet specification and program reviews, we can often identify opportunities to reduce costs and improve performance.

For prospective partners, we welcome the opportunity to review your current pallet program, discuss operational needs, and participate in upcoming sourcing initiatives or RFPs.

If you are evaluating your current pallet supplier or planning ahead for future needs, we would welcome the opportunity to connect.

Reach out for a consultation!

Your ePallet, Inc. Team

ePallet, Inc.

info@epalletinc.com | |1.888.805.9670

NORTH AMERICAN PALLET LUMBER MARKET SUMMARY - MAY 2026

North American lumber and pallet markets remain generally firm as tight pallet-grade lumber supply, rising freight and fuel costs, and disciplined mill production continue creating upward pricing pressure across much of the market. Extended lead times are emerging in several regions (regional breakdown below) as transportation challenges and lean inventories persist.

The South continues seeing the strongest upward movement, while the Midwest and Northeast remain comparatively stable but firm. Recycled pallet markets are also beginning to strengthen as buyers evaluate alternatives to rising new pallet costs.

Key market drivers include:

• Rising diesel and freight costs

• Tight pallet-grade lumber availability

• Reduced sawmill production capacity

• Lean inventories across manufacturing and retail sectors

• Tariff uncertainty and global logistics volatility constraints

  
  

“Many pallet suppliers continue notifying customers of upcoming price increases

driven primarily by fuel and logistics costs.”

Pallet Profile Weekly, May 22, 2026

REGIONAL PALLET MARKET VARIABLES

Southeast / Southern Pine Region

(Georgia, Alabama, Carolinas, Mississippi, Texas)

Strong upward pricing pressure

Key Trends:

• Southern Yellow Pine pallet lumber has seen some of the sharpest increases in North America.

• Pine prices are up 46% in certain markets since early 2026.  Although, recent conversations suggest this will start to even out.

• Freight volatility and export activity are tightening supply.

Why:

• Many southern mills reduced lower-grade output.

• Strong industrial demand and export activity continue.

• Transportation costs are significantly impacting delivered pallet prices.

Market Outlook:

• Additional increases likely through Q2–Q3 if fuel remains elevated.

• Suppliers are shortening quote validity windows.

  
  

Midwest Region

(Ohio, Indiana, Illinois, Michigan, Wisconsin)

Moderately firm with increasing hardwood pressure

Key Trends:

• Hardwood pallet lumber pricing is climbing steadily after a long flat period.

• Industrial manufacturing demand has stabilized.

• Core availability has tightened versus 2024 oversupply conditions.

Why:

• Higher freight costs from regional mills

• Reduced hardwood sawmill production

• Increased crossover demand from customers moving away from expensive softwood pallets

Market Outlook:

• Expect continued moderate increases on:

  • Combo pallets

  • Recycled A grades

  • Custom hardwood specs

    
    

Northeast Region

(PA, NY, NJ, New England)

Tight supply / elevated logistics costs

Key Trends:

• Hardwood pallet pricing remains firm.

• Freight and labor continue to heavily influence delivered pallet pricing.

• ISPM-15 export pallet demand remains steady.

Why:

• Limited regional sawmill capacity

• Higher operating costs

• Dense freight corridors increasing transportation expense

Market Outlook:

• Stable-to-firm pricing with selective increases tied to transportation surcharges and export demand.

• Cost, availability, and freight are now moving together—requiring proactive planning.

  
  

West Coast Region

(California, Pacific Northwest)

Volatile and freight-sensitive

Key Trends:

• Transportation costs are a major contributor to pricing escalation.

• Pallet supply remains inconsistent in some western markets.

• Recycled pallet availability varies significantly by metro region.

Why:

• Long-haul freight costs

• Ongoing labor and operational cost inflation

• Regional lumber supply imbalances

Market Outlook:

• Continued volatility expected.

• Customers with national agreements are seeing regional surcharge activity.

Canada

(British Columbia, Ontario, Quebec)

Mixed but tightening

Key Trends:

• Western Canadian mill closures continue reducing lumber availability.

• Softwood supply constraints are impacting pallet-grade availability.

• Cross-border transportation costs remain elevated.

Why:

• Capacity reductions in British Columbia

• Export market competition

• Currency and trade policy pressures

Market Outlook:

• Canadian pallet suppliers are becoming more aggressive with increase notifications, especially on softwood-heavy programs.

  
  

  Sources: Pallet Profile Weekly, Random Lengths + ePallet Market Insights

  
  

Cost, availability, and freight are now moving together—requiring proactive planning.

Have questions about how these market changes may impact your pallet program? Connect with your ePallet representative to review pricing, supply planning, and optimization strategies.

Weekly diesel prices continue trending near multi-year highs across several regions, contributing to rising transportation and delivery costs throughout the pallet industry. As freight and fuel volatility persist, more pallet providers are implementing or adjusting fuel surcharges to help offset escalating logistics expenses.

Freight and fuel volatility continue influencing pallet delivery costs throughout the supply chain.

PALLET TRENDS

“Higher levels of automation will lead to even more stringent pallet quality demands.”

Pallet Profile Weekly, May 22, 2026

Automation is raising pallet quality expectations across today’s supply chains.

As more manufacturers, warehouses, and retailers adopt automated handling systems, pallet consistency has become increasingly important. Issues such as warped runners, protruding boards, inconsistent dimensions, or damaged components can create conveyor jams, sensor faults, product damage, and operational downtime.

At ePallet, we work proactively with customers through regular monthly and quarterly operational touchpoints to review pallet integrity, monitor quality trends, discuss handling conditions, and identify opportunities for continuous improvement. These collaborative reviews help support safer handling, improved automation performance, and greater supply chain reliability.

If you haven’t evaluated your pallet design recently, there’s a good chance you’re leaving savings and efficiency on the table.

Our team is ready to partner with you to evaluate your pallet design and uncover opportunities to improve cost, performance, and efficiency.