Regional Director of Supply Chain Marcus Blood shares actionable insights on demand trends, market volatility, and winning strategies to help customers plan for peak season success in Q4 2025.
What factors will shape the pallet market in Q4?
This holiday season/ fourth quarter is probably going to be one of the most interesting in recent history.
There's definitely been a tail-off in port activity year over year, largely due to tariff activity. Until that's more clearly defined and normalized, we'll continue to see spotty activity at the ports. We did see a short spike from mid-June to early July, but we're not seeing the usual activity in August and September, leading into the holiday season.
It’s difficult to say how much of this is due to companies bringing products in early, back in January and February, to beat the tariffs versus how much is due to companies projecting a lower sales cycle for the holiday season. There's also the added factor of consumer uncertainty.
What regions are seeing unique market activity?
One of the most pivotal regions right now, given the level of port activity, is the West Coast. If you look at Southern California, earlier this year, we saw a lot of pallet movement from surrounding markets into the region. That has slowed down somewhat. While there isn't a lot of inventory, there also isn't the typical pull of pallets from surrounding markets that we'd normally expect this time of year. That's having an impact on how everyone in our industry is looking beyond the holiday season.
Another unique pocket is the Upper Midwest. Pallet supply in that region is currently tighter than in the rest of the country, which has created some competition for cores. That's making things interesting as companies compete for supply while also trying to figure out how it will eventually impact finished goods pricing.
One of the steadier factors in the industry right now is lumber supply. As long as we continue to see a spike in building starts, I expect lumber prices will stay fairly steady over the next 6–12 months. The only thing that would really shift that is a change in interest rates, which could impact building starts and trigger a ripple effect across the economy.
How can 48forty help customers plan for the upcoming holiday season?
Black Friday is probably the single day of the year when the most pallets are emptied. Our ability to help customers keep their docks cleared during those holiday spikes is critical.
When pallets are emptied, they need to be moved quickly out of the way, and we can make that happen. That all comes back to our footprint, which is unmatched by any of our competitors. It allows us to react quickly and effectively to seasonal surges.
The best service we can provide starts with understanding what our customers are going to need. The sooner we know that, the better we can plan and be ready when the time comes. Sitting down with your local contact to review your holiday projections and involving us in that planning process is key to making sure we can deliver when you need it.
Beyond just pallets, 48forty brings significant visibility and experience across the supply chain. We've seen it all—from automation trends to customer dock operations, to what’s happening in produce fields, ports, and manufacturing facilities. That depth of experience allows us to help customers prepare not just for the holiday season, but for whatever challenges they might face in the future.
For more market insights, contact our national sales team.