Current Status of Usage and Production of Pallet in China

Ying Tang General Secretary of

Pallet Professional Committee (CPC) ofChina Federation of Logistics & Purchasing

(CFLP)

Outline

• Short introduction of CPC• Production status of pallet • Possession quantity of rental pallet• Type of usage of pallet• Features and Trend

Short introduction of CPC

• Pallet Professional Committee (CPC)

– Founded in 2002– Under the administration of China Federation of

Logistics & Purchasing (CFLP)– Runs the Secretariat of Pallet Sub-Committee of

The National Technical Committee Of Standardization In Logistics, Standardization Administration of the People’s Republic of China (SAC)

Short introduction of CPC

• Major work of CPC– On national pallet standards and standardization

• National standard of “General-purpose Flat Pallets for Through Transit of Goods – Principle Dimensions and Tolerances” (GB/T 1934-2007)

( : Recommended)※• National pallet standards: 11 in usage and 16 in process

Plane size mm×mm

Rectangular 1200×1000 ※

Square 1100×1100

Short introduction of CPC

• Major work of CPC– On national pallet standards and standardization– Quasi-government organization dedicated to

China pallet industry

• General investigation on “Current situation of pallet

development in China”, already done in 2002, 2005, 2008

and 2013, release authoritative figures on the number,

performance and usage of pallet in China.

• Annual training and education project: 60~70 persons

per year.

Short introduction of CPC

• Major work of CPC– On national pallet standard and standardization– Quasi-government organization dedicated to China

pallet industry– International communication

• One of the initiative and leading members of Asia Pallet System Federation (APSF), which was set up in 2006 by pallet associations of China, Japan and South Korea, and has 8 member countries now.

• Annual China international pallet conference: started from 2006, and will be held in Nov. 29-30, 2013 at Chongqing, China. (Website: http://www.chinatuopan.cn/tuopan2013)

• Oversea inspection tour project: 9 countries

Production status of pallet

• Production amounts of FLAT PALLETS

Non-reversible two-way pallet (D2)

Non-reversible four-way pallet (D4)

Reversible two-way pallet (R2)

Reversible four-way pallet (R4)

Production status of pallet

• In China, there are more than 6000 pallet manufacturers registered in 2012.

Year: 2012

Production capacity Manufactures Production amounts

2,000,000 5 10,000,000

1,000,000 10 10,000,000

500,000 60 30,000,000

300,000 100 30,000,000

200,000 800 160,000,000

100,000 4,600 460,000,000

Total 5,575 700,000,000 

Production status of pallet

• Production amounts of flat pallets BY MATERIAL

Year : 2012

Material Production Amount s Sales （ RMB ） Percentage

Wood 655,000,000 46,550,000,000 93.6%

Metal 5,000,000 1,000,000,000 0.7%

Plastic 30,000,000 7,500,000,000 4.3%

Paper 10,000,000 500,000,000 1.4%

Total 700,000,000 55,550,000,000 100%

Production status of pallet

• Production amounts of flat pallets BY SIZE

Year : 2012

Pallet Size Production Amounts Percentage

1200mm x 1000mm 140,000,000 20%

1100mm x 1100mm 35,000,000 5%

Others 525,000,000 75%

Production status of pallet

• Production amounts of Returnable Box Pallets

Year : 2012

Types Production Amounts

Returnable Box Pallets 3,000,000

Intermediate Bulk Container 2,000,000

Others 2,000,000

Production status of pallet

• Production amounts of Returnable Plastic Containers

nestable and stackable – with handler

stackable – foldable stackable – monolithic

Production status of pallet

• Production amounts of Returnable Plastic Containers

Year : 2012

Types Production Amounts

Foldable 2,000,000

Monolithic including nestable 4,000,000

Others 4,000,000

Possession quantity of rental pallet

• In China, there are no pallet pooling system yet, but many companies are exploring pallet rental market.

• Top 5 in Chinese rental pallet market– CHEP : 3,400,000 pieces– LOSCAM : 2,223,000 pieces– LIBAO LOGISTICS: 580,000 pieces– Successful Sailing Supply Chain Logistics : 400,000 pieces– LogisALL : 250,000 pieces

Possession quantity of rental pallet

• Possession amounts of rental pallets as a whole

Year : 2012

Rental PalletPossession Amounts

Material Size

Wood1200mm x 1000mm 4,175,000

1100mm x 1100mm 4,000,000

Plastic1200mm x 1000mm 2,638,000

1100mm x 1100mm 75,000

Returnable Box Pallet 410,000

Returnable plastic container -

Type of usage of pallet

Year : 2012

Type of Usage Flat Pallet Returnable Box Pallet

Storage and handling within the site 0.7 ％ 15 ％

One-way use of domestic transport 25 ％ 44 ％

Returnable use of domestic transport 0.3 ％ 20 ％

One-way use of international transport 74 ％ 20 ％

Returnable use of international transport 0 ％ 1 ％

Total 100 ％ 100 ％

Features and Trend• Operation expense in supply chain or logistics

almost account for 18.3% of GDP in China, while 9.0% in America.– Equipments non-standard: not only pallet (75%), but also

container, truck, warehouse, rack, process...– Shortage of quality facilities and IT system management– Low efficiency: Low truck availability, long operation time，

man power handling – One way transport packaging / Cargo damage & loss– Fast growing labour cost in recent years

• Equipment standardization, Improve efficiency, Reduce cost of supply chain, Environmental Friendly & Sustainability development

Voices from Market

• To reduce human power handling cost through palletization

• To reduce logistics cost through pallet rental and pooling system

• To standardize the pallet and container through rental and pooling system

• Logistics cost analysis and method needed, special in transport packaging

• Professional pallet and container R&D for different segments and new biz (Solar, Chemical, Online shop, …)

• Professional service needed (Maintenance, Return and tracking management, …)

Thanks for your attention