South Plainfield-based PalletTrader is collaborating with Pallet Control Tower (PCT) to establish a common process for transatlantic pallet exchange, allowing U.S. shippers to source, sell and reuse EU-grade pallets for exports to the EU.
PCT is the European standard and digital platform leader for pallet collection, matching and delivery in the European Union.
Under this collaboration, the two platforms intend to offer a new service which will enable U.S. shippers to obtain and reuse European-standard pallets, initially used to transport goods into the U.S. from Europe, to ship U.S. exports back to Europe.
At the same time, European-based shippers who receive imported goods on U.S-standard pallets, will benefit from the digital-driven platform operated by PCT to source and reuse these pallets for exports to the U.S.
The two companies independently have built digital e-commerce platforms from which shippers and pallet providers can procure and manage their needs for a wide variety of shipping pallets, within their respective regions.
The opportunity for a trans-Atlantic pallet trading market was driven by the European Union’s recently enacted Packaging and Packaging Waste Regulation (PPWR).
This regulatory initiative articulates a comprehensive framework for EU businesses intended to eliminate packaging waste and promote accelerated recycling and reuse of packaging materials, including pallets. It will subject manufacturers, distributors, e-commerce retailers, fulfillment operators, packaging producers, transportation firms and other supply chain participants to a wide range of regulations, with reuse targets designed to eliminate waste and create a “circular supply chain.”
In today’s market, U.S.-standard pallets are built to a specific dimension, usually measured in inches. European-grade pallets are built to a different, separate dimensional standard using centimeters. The differences make it difficult for the pallets to be used in warehouses and automated material handling systems outside of their respective geographic regions.
“Previously, there was no market for European pallets in the U.S., they had no value and there was no formalized mechanism, process or incentive to find and use them for return trips,” said John Vaccaro, president of PalletTrader. “Typically, those pallets were treated as a discarded commodity, waste that went into landfills or were ground into mulch.”
“Now we are working together with PCT to establish a common process, through PalletTrader in the U.S., to provide an option for transatlantic pallet exchange, which would allow U.S. shippers to source, sell and reuse EU-grade pallets,” he explained. “That will bring new value to these EU-origin shipping assets, which can be repurposed as export shipping platforms,” he said.
“Perhaps more importantly, this collaboration would provide an avenue for shippers to comply with PPWR mandates while reducing the expense associated with disposal,” Vaccaro said, noting that under PPWR, reuse and reshipping of EU-grade pallets back to their origin also potentially provides a form of credit to the shipper that can offset some pallet costs.
And with the Trump Administration’s recent imposition of tariffs across many imported products, “The timing could not be better for international shippers to embrace this to avoid tariff impact buying pallets for a one-way use,” Vaccaro added.
