Expanding its product offering to include an innovative composite pallet, Ongweoweh Corp. (www.ongweoweh.com) has signed an agreement with Axios Mobile Assets Corp. (www.axiosma.com) indicating it will purchase a guaranteed volume of Axios pallets and acquire an equity position in the company in exchange for the exclusive use of the Axios solution for leased, rental and managed pallet pools.
Much more than just a pallet broker, Ongweoweh manages millions of pallets per year for customers using its NativeTrak software. Ongweoweh was attracted to the Axios solution indicating it could do really well in the food and pharmaceutical sectors.
Richard MacDonald, president and CEO of Axios, said, “Ongweoweh has made an equity investment in the company. They have done other equity investments with other pallet suppliers. That is not unusual for them. It is part of how they manage their business.”
David Wickwire, executive vice president and CFO for Ongweoweh, said, “The Axios pallet balances costs with weight and has good technology behind it in terms of carbon credits.”
One of the most innovative aspects of the Axios line of pallets is that they are the first to be registered with an international carbon credit board and backed by a system that allows users to earn a carbon credit for its use. MacDonald explained that the reason the pallet qualifies is that it saves fuel compared to a typical wooden or plastic pallet since it is the lightest, edge rackable (up to 2,800 lb.) pallet on the market.
Carbon is traded as a commodity on open international markets. Multinational corporations in North America that operate in Europe are subject to carbon taxes. They have a desire to offset their cap-and-trade taxes. MacDonald said these companies can offset their carbon tax by using this pallet in North America.
MacDonald stated, “What we find is that the big miles for a lot of these product manufacturers are done in North America. But the carbon offsets that they have to comply to are in Europe. So it is a nice fit for a multinational.”
MacDonald said that Axios offers an FDA compliant, FM global certified pallet, software and technology suite that provides revenue generation through carbon credit monetization along with operational savings. The design is easy to wash and has excellent top deck coverage, according to Axios. FM Global has rated the Axios pallet as sufficient to pass its 4996 fire standard.
Currently, Axios offers 48×40 and half sized pallet footprints. Axios pallets are 100% recyclable and have been tested by Michigan State University to pass ISO 8611 standards. Its design does not need steel rods to pass performance tests. Each pallet is equipped with four RFID tags that work with Axios software to enable asset control. Axios software can track the location of the pallet based on user submitted data even if RFID is not used.
Ongweoweh has a reputation for taking bold steps and being fairly material agnostic although most of the pallets it manages are still made from wood. Are partnerships between a composite pallet manufacturer and major pallet broker and management company the model for the future? With both companies hoping for significant growth, it will be interesting to see how this new partnership is received by the marketplace.
