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Current Status of Usage and Production of Pallet in China Ying Tang General Secretary of Pallet Professional Committee (CPC) of China Federation of Logistics.

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Presentation on theme: "Current Status of Usage and Production of Pallet in China Ying Tang General Secretary of Pallet Professional Committee (CPC) of China Federation of Logistics."— Presentation transcript:

1 Current Status of Usage and Production of Pallet in China Ying Tang General Secretary of Pallet Professional Committee (CPC) of China Federation of Logistics & Purchasing (CFLP)

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

3 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 Peoples Republic of China (SAC)

4 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 ) ( : Recommended) National pallet standards: 11 in usage and 16 in process Plane sizemm×mm Rectangular 1200×1000 Square1100×1100

5 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.

6 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 , 2013 at Chongqing, China. (Website: Oversea inspection tour project: 9 countries

7 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)

8 Production status of pallet In China, there are more than 6000 pallet manufacturers registered in Year: 2012 Production capacityManufacturesProduction amounts 2,000, ,000,000 1,000, ,000, , ,000, , ,000, , ,000, ,0004,600460,000,000 Total5, ,000,000

9 Production status of pallet Production amounts of flat pallets BY MATERIAL Year : 2012 MaterialProduction Amount s Sales RMB Percentage Wood655,000,00046,550,000, % Metal5,000,0001,000,000,0000.7% Plastic30,000,0007,500,000,0004.3% Paper10,000,000500,000,0001.4% Total700,000,00055,550,000,000100%

10 Production status of pallet Production amounts of flat pallets BY SIZE Year : 2012 Pallet SizeProduction AmountsPercentage 1200mm x 1000mm140,000,00020% 1100mm x 1100mm35,000,0005% Others525,000,00075%

11 Production status of pallet Production amounts of Returnable Box Pallets Year : 2012 TypesProduction Amounts Returnable Box Pallets3,000,000 Intermediate Bulk Container2,000,000 Others2,000,000

12 Production status of pallet Production amounts of Returnable Plastic Containers nestable and stackable – with handler stackable – foldable stackable – monolithic

13 Production status of pallet Production amounts of Returnable Plastic Containers Year : 2012 TypesProduction Amounts Foldable2,000,000 Monolithic including nestable4,000,000 Others4,000,000

14 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

15 Possession quantity of rental pallet Possession amounts of rental pallets as a whole Year : 2012 Rental Pallet Possession Amounts MaterialSize Wood 1200mm x 1000mm4,175, mm x 1100mm4,000,000 Plastic 1200mm x 1000mm2,638, mm x 1100mm75,000 Returnable Box Pallet 410,000 Returnable plastic container -

16 Type of usage of pallet Year : 2012 Type of UsageFlat PalletReturnable Box Pallet Storage and handling within the site One-way use of domestic transport Returnable use of domestic transport One-way use of international transport Returnable use of international transport 0 1 Total 100

17 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

18 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, …)

19 Thanks for your attention


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