Bernd Doerre is the CEO of the European Pallet Association , which operates the largest open pallet pool in the world. With new packaging regulations in development in Europe, he explains the basics of the EPAL system for any U.S. pallet producer considering joining EPAL as a supplier from North America. For more information on EPAL, visit https://www.epal-pallets.org/eu-en/.
Pallet Enterprise: What is the process for a North American pallet producer or recycler to get involved officially in EPAL?
Bernd Doerre: The process starts with a pallet company informing us of their desire to join EPAL. Then, we send documents explaining how the process works. It’s easy, no matter if a company is a pallet manufacturer or repairer. This information details the machinery, tools and capabilities to produce a reliable, quality pallet. Once we have verified the company has the equipment and capabilities to fit our criteria, the applicant makes a run of 50-100 sample pallets. Then, we send inspectors to conduct an initial audit of the sample pallets as well as the facility. If the inspection audit report is positive, the company can then sign a license agreement with EPAL. There are separate licenses and audit criteria for pallet producers and recyclers. The costs are a little bit lower for repair licenses.
Pallet Enterprise: Is there a minimum number of pallets to be an EPAL licensee?
Bernd Doerre: No, there is no minimum number. If a company is licensed and its customers don’t want to buy EPAL pallets, we don’t take away the license. There are two types of licenses: one for those who produce a limited number and are inspected as they produce pallets. There are larger volume producers who manufacture or recycle more than 30,000 EPAL pallets per year, and those companies are inspected at least once per month and not every load. They have the right to self-control to deliver pallets without inspecting each load.
Pallet Enterprise: Who would handle the inspection process today in North America? Do you have an inspection agency in the United States yet?
Bernd Doerre: No, not yet. Globally, we have two inspection companies. In most of the countries, we have Bureau Veritas. And we have an inspection company for China. Bureau Veritas is also in the United States and Canada. We are also open to working with an inspection company, such as Timber Products Inspection, or another company that is more common in the U.S. market.
Pallet Enterprise: What do inspectors look for in an EPAL inspection?
Bernd Doerre: If you are talking about a regular inspection, they will come to the company and look at the plant, the lumber material and pull out samples to inspect. In a typical repair company, they will produce 2,000 pallets and may look at 30-50 samples. Inspectors are looking at the onsistency of the pallet to the specification, focusing on the dimension size and board thickness. Size consistency is important for the safety of the pallet as well as the performance on conveyors and automated systems.
Pallet Enterprise: How many inspections are done per year in a typical EPAL producer in Europe?
Bernd Doerre: About 80-90% of EPAL pallets are produced by 40-50 companies. They produce the largest volume, and some are inspected two or three times per month. Companies producing a small amount would only need to be inspected once per month. Level 1 licensees are only inspected when they are ready to produce EPAL pallets. This is what most of the potential U.S. producers would be. They are inspected at least two times per year.
Pallet Enterprise: What do companies need to produce EPAL pallets?
Bernd Doerre: EPAL pallets are block pallets that must be produced on automated nailing machines. Lumber must meet minimum criteria and proper sizing. For example, stringers must be produced out of hardwood. The right nails must be used as well as a security staple to prove authenticity of the pallet. The pallets must be marked with heat stamping, or ink jet to identify the producer, EPAL brand, and ISPM-15 information. A repair-marking nail is required for authorized repairs.
Pallet Enterprise: What are the prospects for EPAL pallets to grow in popularity in North America for export to Europe?
Bernd Doerre: We believe this market is going to develop and grow in North America. Some companies already use recycled EPAL pallets here for export to Europe. But those pallets are not always in the place where customers need them. Companies in Europe want pallets to meet minimum standards and are asking for certified pallets. Hopefully, this will be the case in the United States as well.
Pallet Enterprise: If the new European reusable packaging regulations aren’t finalized this coming year, what kind of timeline are you anticipating?
Bernd Doerre: I have no idea if the pallet market will receive an exemption like the corrugated sector. But if the proposed reusable packaging guidelines aren’t completed by March 2024, I believe they will be delayed until after upcoming elections in Europe, probably sometime in 2025.
