§1The reading
The BLS wood pallet PPI (WPU084101) was 366.521 in September 2023, down 0.8% on the month and down 13.1% on the year.
Over three months the index moved −3.3%.
It was the lowest reading since May 2021.
Across the five years to September 2023, the index ranged from 270.5 (December 2018) to 444.2 (April 2022).
Lumber (WPU081) was −12.2% on the year, softwood −15.2% and hardwood −7.7%; lumber ran 0.9 points ahead of pallets over twelve months.
The industry-basis index for wood container and pallet manufacturing (PCU321920321920) was −12.9% on the year.
U.S. retail diesel averaged $4.563 a gallon over the month (EIA, 4 weekly readings), −8.6% on a year earlier.
These notes are generated from the published figures, not written by an analyst. The method is on the methodology page.
§2All eight series for September 2023
| Series | Base | Index | Month | Year |
|---|---|---|---|---|
| Wood pallets WPU084101 | 1982 = 100 | 366.521 | −0.8% | −13.1% |
| Pallets incl. wood/metal combination WPU0841 | 1982 = 100 | 366.521 | −0.8% | −13.1% |
| Wood container & pallet mfg (industry) PCU321920321920 | Dec 2003 = 100 | 195.085 | −0.5% | −12.9% |
| Pallets, industry basis PCU3219203219205 | Dec 2003 = 100 | 202.622 | −0.8% | −13.1% |
| Industry primary products PCU321920321920P | Dec 2003 = 100 | 188.532 | −0.8% | −13.2% |
| Lumber WPU081 | 1982 = 100 | 256.492 | +0.3% | −12.2% |
| Softwood lumber WPU0811 | 1982 = 100 | 261.997 | −1.7% | −15.2% |
| Hardwood lumber WPU0812 | 1982 = 100 | 259.370 | +3.5% | −7.7% |
p = preliminary. BLS revises the latest four months.
§3What it means for an index clause
A pallet bought at $10.00 twelve months earlier, escalated in full with this index, would be $8.69 in September 2023. Method: $10.00 × (index in September 2023 ÷ index twelve months before). Most clauses only move the price when the change passes a band, and some pass through only part of it.
Under the model clause's quarterly review, September 2023 is not a review month: the next review, on 1 January 2024, uses the November 2023 reading. A monthly-review contract would use this reading directly.
Run your own numbers with the escalator, or read the model escalator clause.
§4Freight context
U.S. retail on-highway diesel averaged $4.563 a gallon across 4 weekly EIA readings in September 2023 (−8.6% on a year earlier). Delivery charges and fuel surcharges are separate from the producer index, so price them as their own lines in the bid-leveling sheet.