The pallet market enters 2026 with mixed signals and rising caution. Demand looks uneven across sectors and regions. However, several indicators point to tighter supply and firmer prices as the year progresses. Moreover, macro forces still shape outcomes in decisive ways. Tariff policy shifts, lumber duties, and port dynamics continue to sway pallet availability and cost. Consequently, procurement teams should plan for select shortages and regional price spikes, particularly in high‑velocity logistics hubs.
Why The Pallet Market In 2026 Looks Tighter Than 2025
First, lumber and wood‑products signals suggest upward pressure. Fastmarkets expects demand stabilization with reduced North American capacity, while duties and trade realignments support firmer wood prices. As a result, new pallet costs may rise.
Second, producer prices for wood pallets stopped falling and stabilized into late 2025. The PPI for wood containers and pallets ended December 2025 near 186.5, reflecting a floor after the 2023–2024 correction. Price floors often precede modest rebounds.
Secondary markets show firmer trends as well. Analysts highlight core scarcity, OCC strength, and tariff‑driven import swings that keep A‑ and B‑grade pallets bid. Therefore, recycled pricing likely holds or inches higher
Finally, early 2026 lumber prints resemble the prior two years, yet with tight Western SPF supply and cautious mill output. That backdrop supports steady to higher input costs for pallet producers.
What Most Affects Pallet Prices The Most?
Softwood prices began 2026 similar to where 2025 prices ended. Supply & Demand create the market conditions.
Despite, freight demand ending softer than anticipated in 2025, many analyst foresee a jump in demand by year end 2026. Therefore, since commodity markets are forward looking pallet prices are expected to increase.
What Cities & States Might See Higher Pallet Prices?
Imports stayed strong in mid‑2025, and rail flows redirected volumes inland. Despite, softer local industrial demand, LA/Long Beach still concentrates containerized freight. Pallet needs often swell around tariff windows and peak seasons. Therefore, prices trend higher during surges.
Port Houston continues to expand. Hence, creating a strain on regional trucking during spikes. Furthermore, Dallas–Fort Worth absorbs much of the inland freight from Los Angeles. These flows keep pallet demand high, pushing prices above national averages.
Undoubtedly, Chicago is a busy rail hub. Especially, for the class 1 railroads. It serves as major interchange point. Chicago therefore, experiences persistent pallet demand for use in cross‑dock and storage. Tight supply can is highest in the spring and late‑summer as retail builds.
East Coast routing gained share during West Coast labor worries. The region also sees periodic appointment bottlenecks and chassis constraints, which extend dwell and tie up pallets in yards and warehouses. As a result, prices can lift in the NY/NJ catchment during import waves.
South Florida is known as the gateway to the Americas. Currently there is an a changing landscape in Venezuela. Unquestionably, Venezuela is a huge freight and export market for many businesses in South Florida. This increasing demand will push pallet demand and prices higher.
Finalizing The Outlook For Pallets In 2026
Without a doubt, pallet buyers have a tough year ahead. Clearly, speculation is running hot and causing a stir. Additionally, there will always be traditional hot spots throughout the country. This will cause countless headaches. Even so, 2026 should fair a lot better for most than anticipated.
