Dodd Letter Sets Off another Pallet Battle

January 2011

Material Handling & Logistics

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With less than a month left to his 30-year career in the U.S. Senate, Christopher Dodd (D-Conn.) sent a letter to Food and Drug Administration Commissioner Margaret Hamburg last month, urging the agency to notify "food manufacturers, transporters and retailers inspected by the FDA that plastic pallets containing decaBDE are inappropriate for use in scenarios that may bring decabromine into contact with food."

Decabrominated diphenyl ether, a fire retardant found in some plastic products, has been linked in some studies to cancer and brain dysfunction. Dodd recommended the FDA "develop and disseminate education and training materials for FDA inspectors to enable them to identify plastic pallets that contain decaBDE, recognize scenarios of use that may bring decaBDE into food contact, and be provided clear guidance regarding enforcement and reporting requirements."

Shortly after this letter was sent, the National Wooden Pallet and Container Association (NWPCA) issued a press release detailing the letter's content.

This set off another war of words between NWPCA and Intelligent Global Pooling Systems (iGPS Company, LLC), an operator of a pallet rental service providing all-plastic pallets to the food and grocery industry as well as many others. Bob Moore, chairman and CEO of iGPS, issued a press release of his own, in which he questioned Dodd's motives.

"Asking a politician in his final minutes in office to submit a letter ... at the obvious request of the wooden pallet industry, is cynical and disingenuous," he said "There is not a morsel of truth in former Senator Dodd's letter. Either the Senator was purposely misled or he decided to do a friend a last-minute favor by repeating spoon-fed mistruths and scare tactics."

Moore has said that wood pallets are susceptible to insect infestation and require heat treatment or fumigation before they can move cross-border. He has further noted that fumigants, such as methyl bromide, have been labeled by scientists and environmentalists as harmful to the earth's protective ozone layer and that wood pallet nails can penetrate food packaging and thus contaminate food.

Moore has also cited a series of independent tests that showed that up to 30 percent of wood pallets contain E. Coli and Salmonella, pathogens he says are commonly found on wood pallets and have been linked to a series of drug recalls.

The NWPCA has cited a German Institute for Food Technology study comparing wood and plastic pallets used in meat, dairy, vegetable and bakery sectors. The institute found "the overall bacterial count on commercial wood pallets made from different types of wood was an average 15 percent lower than on plastic pallets."

NWPCA's web site further states that the recent lawsuit iGPS filed against NWPCA for conspiring to drive it out of business is a "distraction meant to draw attention from the core of what NWPCA is advocating, which is to have a zero tolerance for all polybrominated diphenyl ether (PBDE) flame retardants in the food and pharmaceutical industries."

Consumer Group Pallet Pathogen Tests Prompt Urging of FDA Regulation

June 21, 2010

NCL test results show up to 10 percent of wood pallets test positive for pathogens.

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Washington, DC – With its test results showing up to 10 percent of wood pallets testing positive for pathogens, the National Consumers League (NCL) is urging the U.S. Food and Drug Administration (FDA) to set minimum sanitary and safety standards for the "unregulated but crucial" pallets that are used to transport food throughout the United States.

The move by NCL follows exploratory tests of pallets for foodborne pathogens, including E. coli and Listeria. Findings showed 10 percent of the 70 wood pallets tested had E. coli present (though not the most virulent strain, E. coli O157:H7). In addition to the presence of E. coli, 2.9 percent of the wood pallets tested positive for Listeria, and half of these, when further tested, contained Listeria monocytogenes. Of 70 plastic pallets tested, 1 – or 1.4 percent – came back positive for E. coli. None of the other plastic pallets tested positive for pathogens. In addition, high aerobic plate counts, which reflect unsanitary conditions of the pallets, were found on approximately one third of the wood pallets and one fifth of the plastic pallets.

Testing was conducted in late April and included 70 wood pallets and 70 plastic pallets. NCL shipped the samples overnight to an independent microbiology lab that provides testing services for a wide array of commercial, industrial, regulatory, and law enforcement clients. In a letter to the FDA, NCL described the results of its exploratory testing of wood and plastic pallets used to transport food in the greater Houston, Texas and Miami/Tampa, Florida, areas.

"Looking at the safety of pallets is crucial. Even if farmers, manufacturers, retailers, and consumers were all to follow food safety plans and practices to the letter, the introduction of dangerous pathogens into the food supply during transport could negate these efforts…With approximately two billion pallets currently in circulation in the United States, the presence of dangerous pathogens on even a small percentage of those pallets presents a potential threat to the safety of the food supply," wrote Sally Greenberg, the League’s Executive Director, in her letter to the FDA.

Several different aspects of pallet use and storage present potential food safety concerns. If a pallet is absorptive – i.e., has the capacity to absorb water and harbor bacteria – or difficult or impossible to fully clean, it could contaminate food products like fresh produce or meat. Regardless of the materials from which it is made, any pallet that is not properly cleaned between trips increases the likelihood of cross-contamination. Storing a pallet outside, in unsanitary areas, in places accessible to vermin, or near potential contaminants increases the chances that the pallet could harbor dangerous pathogens. In addition, the use of damaged wood pallets; splinters or sharp points can damage the packaging of products, creating an entryway for pathogens from which sealed products would otherwise be protected.

NCL has urged the FDA to do its own testing and set standards to help ensure that pallets are cleaned and stored properly, thus minimizing the possibility that they will be implicated in the spread of foodborne illness.

Read the full story from NCL and NCL’s letter to FDA.

Designing a Greener Road Trip

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...In addition to working with SmartWay carriers, HP has begun using plastic pallets made by AIRDEX INTERNATIONAL INC. to transport its notebook laptop computers to Europe, the Middle East, Africa, Latin America and North America. Doing so decreases the environmental impact of shipping them because AIRDEX Pallets are made of recyclable plastic rather than wood and, according to HP, the pallets are stronger, lighter and more durable than the wooden pallets it previously used.

HP estimates that through all its fuel-saving measures, it has reduced its CO2 output by more than 22,350 metric tons -- the equivalent of removing 4.300 cars from the road for one year.

Another pallet provider, Intelligent Global Pooling System (iGPS) also makes plastic pallets, which share the weight and durability benefits of the AIRDEX Pallets and also include an added feature that can help companies boost transportation efficiency: passive, integrated RFID transponders. These embedded devices do not require batteries and are encoded with a unique identification number that is captured by RFID readers stationed in warehouses or distribution centers, or by handheld readers that shipping personnel carry.

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K+N joins AIRDEX to offer green alternative

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KUEHNE + Nagel and AIRDEX INTERNATIONAL INC., developer and manufacturer of the light-weight AIRpallet™, announced the formation of a strategic alliance to investigate and find solutions for joint customers who are interested in reducing the costs and environmental impacts of airfreight transportation.

One of the largest contributing factors to high logistics costs and carbon dioxide emissions, is the usage of airfreight as a means to serve customer timing and transportation demands.

According to Reinhard Lange, chief operating officer sea & air logistics and deputy chief executive officer, K+N, said: "This alliance supports our commitment to find innovative solutions for our customers, providing for ‘lean and green’ alternatives to their transportation activities. We see these types of seemingly small solutions to have a large supply chain cost benefit and environmental benefit."

Part of the strategic alliance will be to form a learning network with selected customers led by K+N’s Ken Nieze, senior vice-president eco air-solutions, and Dr Rod Franklin, vice-president product development and green innovation, as well as Mark Berger, vice-president of global logistics for AIRDEX. This learning network, which will be formed in Luxembourg as a pilot leveraging on the collaboration work done with Hewlett Packard, is to investigate the end-to-end value and environmental advantages across the supply chain using a low weight, high structured pallet for goods in the transport process.

The project foresees leveraging K+N’s network as an integrated part of a customer’s supply chain and the (re-)usage of the 3 kg light-weight hybrid plastic pallet from AIRDEX, which by comparison to traditional wooden pallets, offers considerable savings in terms of dead transportation weight, and thus reduces transport costs and energy requirements.

The pilot project will address the total inbound supply chain process for Hewlett Packard, from Asia to Luxembourg.

Pat Tiernan, vice-president social and environmental responsibility, HP, said: "As a technology industry environmental leader for decades, HP is focused on limiting its environmental impact from the individual employee to global operations, including our entire supply chain. Transitioning to this solution has resulted in transportation cost savings, reduced transit damage and reduction in the overall environmental impact of our business."

Vance Seagle, founder and chief executive officer of AIRDEX, said: "The AIRpallet™ cargo safety record is a well proven cost saver combined with the elimination of aircraft cargo bay damage so common when using wooden pallets. Everyone the AIRDEX team is enormously proud of this new alliance with a globally recognized industry leader in K+N and we are eager to add more affiliations through our combined leadership."

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New partnership takes a lightweight approach to environmental issues

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Global logistics provider Kuehne + Nagel and AIRDEX INTERNATIONAL INC., developer and manufacturer of the patented light-weight AIRpallet™, have formed a strategic alliance to develop solutions for reducing the costs and environmental impacts of airfreight transportation.

Reinhard Lange, Chief Operating Officer Sea & Air Logistics and Deputy CEO, Kuehne + Nagel International AG, said this alliance supports the company’s commitment to finding innovative solutions for customers, providing clean and green alternatives to their transportation businesses.

Part of the strategic alliance will be to form a Learning Network with selected customers led by Kuehne + Nagel’s Ken Nieze, Senior Vice President Eco Air-Solutions, and Dr. Rod Franklin, Vice President Product Development and Green Innovation, as well as Mark Berger, Vice President of Global Logistics for AIRDEX.

This Learning Network, which will be formed in Luxembourg as a pilot leveraging on the collaborative work done with Hewlett Packard (HP), is to investigate the end-toend value and environmental advantages across the supply chain using a low weight, high structured pallet for goods in the transport process. The pilot project will address aspects of the total inbound supply chain process for Hewlett Packard Co. from Asia to Luxembourg.

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HP First to Display U.S. EPA SmartWay Logo

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...HP further reduces impact of consumer notebook transport

To further reduce the environmental impact of its U.S. consumer notebook transport, HP has begun a pilot program that ships notebooks on pallets made of recyclable plastic rather than wood.

Not only do plastic pallets avoid deforestation, but they also are significantly stronger, lighter and more durable than wooden pallets. In 2006, HP estimated that the use of plastic pallets for airfreight shipments in its existing full-program implementations in Europe and Latin America reduced its transportation CO2 footprint by more than seven metric tons, the equivalent of taking 150 cars off the road for a year.

HP’s program also includes recovery and recycling of the plastic pallets through its supplier, AIRDEX INTERNATIONAL INC. The European program has been successful in capturing 98 percent of the plastic pallets for reuse or recycling.

"Our plastic pallets contribute to improved human welfare, not only from the direct environmental benefits of reduced CO2 emissions, fuel consumption and deforestation, but also due to the near impossibility of the ultra-light AIRDEX Pallet to cause harm to air cargo workers in any way," said Vance Seagle, founder and chief executive officer, AIRDEX INTERNATIONAL INC. "The AIRpallet™ cargo safety record is a well-proven cost saver combined with the elimination of aircraft cargo bay damage so common when using wood pallets."

All of HP’s major retail partners in the United States have agreed to participate in the pilot program, which began April 1.

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Lighten the Load
New Lighter Pallets Reduce Import/Export Costs

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There are two major criteria to consider when choosing the type of pallet to use for exporting and importing product: compliance and cost. What type of pallet does the recipient country and customer accept, and how much will pallets factor into the total cost of shipping?

When decisions are being made about the best type of pallet to use for moving products internationally the devil is truly in the details. Is pallet price or weight or strength or regulatory compliance the most important criterion? Airfreight charges can be reduced using plastic pallets. Untreated wood pallets can carry alien insects that will find new homes in receiving countries. Pallets made of engineered wood are strong, are phytosanitary compliant and can carry heavy loads. And of course pallet size and style vary by geographic region.

Hewlett-Packard Company (Palo Alto, Calif., www.hp. com) determines the type of pallet or other load-handling material to use based on the mode of transportation. Slipsheets, for example, are used for sea containers because they give better cube utilization, allowing another layer of product to be put into containers.

HP ranks high on the list of companies that move product by airfreight. Airfreight costs are determined by the total weight of the shipment. The company is transitioning to a lighter plastic pallet that has high tensile strength for its airfreight loads, says Randy Boeller, package engineering manager at HP's Houston distribution hub. Even though the lightweight plastic pallets cost more than wood pallets, HP still saves money shipping its notebook computers palletized on plastic pallets from Asia to markets worldwide. However, plastic pallets are not a universal solution.

"Where it makes sense," Boeller explains, "we will change out pallets at a hub if that is what it takes to save money on the first leg of the trip and satisfy the customer on the last leg of the trip." For example, HP repalletizes notebooks on metric block pallets that its European customers will accept.

Dock workers also benefit from handling plastic pallets. They don't receive splinter or nail wounds and the lighter weight contributes to fewer back injuries. Another advantage of plastic pallets is that they can be reused, recycled or resold.

AIRDEX (Las Vegas, www.airdex.com) makes the plastic pallet that HP uses for airfreight shipments. The pallet's core is super-compressed, molded EPS foam that is fused with a tough outer coating. The result is a seven-pound pallet that provides shock and vibration protection, thermal insulation, and a soft-seated, non-slip, tamper-resistant solid top deck.

To supply its customers' global factories, AIRDEX has integrated some of its production lines within local packaging suppliers. HP ships laptop products from Shanghai on locally produced Airdex pallets.

The bug issue

Foreign bugs transported in wooden packaging material are threatening many countries' native forests. To prevent this problem from spreading any further, conventional wood pallets need to comply with International Standards for Phytosanitary Measures (ISPM 15). This standard requires wood to be heat or chemically treated to kill bugs and larva prior to exporting/ importing. For conventional hardwood and softwood, treating is an extra process and adds time, material and cost to the end product. Pallets made from this type of wood must carry a stamp demonstrating that the treatment process has been completed...

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