When Giants Move: How Port of New York and New Jersey Volume Swings Create Ripple Effects for Local Pallet Manufacturers

The Port of New York and New Jersey stands as the largest on the East Coast and the third busiest in the United States, serving as a critical gateway for international trade. What many businesses don’t realize is how dramatically the port’s shipping volume fluctuations directly impact local pallet demand, creating both challenges and opportunities for manufacturers throughout the tri-state area.

The Numbers Tell the Story

In 2023, the port handled a cargo volume of over 7.8 million TEUs (twenty-foot equivalent units), with recent data showing significant volatility. Through June 2025, the Port of NY & NJ handled 4.4 million TEUs, marking a 4.9% increase compared to the same period last year. However, this growth comes after periods of substantial decline, including a 22% year-over-year drop to 660,553 TEUs in September 2023.

These dramatic swings aren’t just statistics—they represent millions of containers moving through the region, each requiring pallets for inland distribution. A TEU can hold roughly 10 regular pallets, which would translate into almost 1.6 billion pallets moving internationally in 2023, if all containers contained palletized shipments.

The Pallet-Port Connection

Pallets are ubiquitous in the supply chain sector, so any changes in the way they work may ripple through the entire shipping process. When container volumes surge at the port, local businesses experience increased demand for pallets to support warehousing, distribution, and retail operations throughout the region.

With six container terminals and multiple cargo rail lines, the Port of NY & NJ services one of the world’s wealthiest and most dense consumer base. The Port has the largest 250-mile radius population of any port in North America, with more than 60 million people making up one-third of the country’s GDP. This massive consumer base requires extensive distribution networks, all dependent on pallets for efficient cargo handling.

Supply Chain Vulnerabilities

The relationship between port volumes and pallet demand has become increasingly complex. The demand for pallets went up by 25% in the first half 2022, and the supply wasn’t able to keep up. Demand for pallets is as high as it’s ever been, with lumber prices astronomical if you can even get wood.

These shortages have real consequences. Items will flow through the supply chain at a slower rate, which would affect the whole chain and cause massive disruptions. For businesses near the port, this means planning ahead and establishing reliable relationships with local pallet suppliers becomes critical.

The Local Advantage

Smart businesses are turning to established regional suppliers who understand the unique dynamics of the New York-New Jersey market. Working with a reliable pallet company nj can provide the consistency needed to weather port volume fluctuations.

Local pallet manufacturers offer several advantages during volatile periods:

• Proximity to demand: Shorter transportation distances mean faster delivery and lower costs
• Market knowledge: Understanding of local shipping patterns and seasonal fluctuations
• Flexible capacity: Ability to scale production based on regional port activity
• Relationship-based service: Personal attention that large national suppliers often can’t provide

Planning for the Future

Trade policy decisions surrounding tariffs will be important in the port’s continued success during the second half of 2025. However, the Port Authority has initiated key projects to bolster future growth, from accommodating larger vessels and enhancing infrastructure.

These infrastructure investments suggest continued growth in container volumes, which will drive sustained demand for pallets. The pallet market is expanding from an estimated $256.8 million in 2024 to a colossal $443.6 million by 2034, fueled by an impressive CAGR of 5.6%. Pallets are essential for international logistics and their demand is being driven by several factors such as ever-increasing supply chain requirements.

Navigating Market Volatility

For businesses operating in the Port of New York and New Jersey region, understanding the connection between shipping volumes and pallet demand is crucial for operational planning. Pallets protect the product, absorb the stresses, hold the weight, encounter fork truck impacts, and safeguard goods traveling through the supply chain. When you consider all they are expected to do, you will conclude they have a tremendous amount of influence on the outcome of a shipment. Pallets are the first line of defense for ensuring products reach their destination in the same condition as when they left the shipper.

The key to success lies in partnering with suppliers who can provide consistent quality and availability, regardless of port volume fluctuations. As shipping patterns continue to evolve and the port implements new technologies and infrastructure improvements, businesses that secure reliable pallet partnerships will be best positioned to capitalize on growth opportunities while maintaining operational efficiency.

By understanding these market dynamics and working with experienced local suppliers, companies can turn the challenge of port volume volatility into a competitive advantage, ensuring their supply chain operations remain smooth and cost-effective regardless of what the shipping data reveals each month.