§1The reading
The BLS wood pallet PPI (WPU084101) was 352.541 in December 2023, down 0.6% on the month and down 12.8% on the year.
Over three months the index moved −3.8%.
It was the lowest reading since April 2021.
Across the five years to December 2023, the index ranged from 279.3 (January 2019) to 444.2 (April 2022).
Lumber (WPU081) was −7.4% on the year, softwood −14.6% and hardwood +4.4%; lumber ran 5.4 points ahead of pallets over twelve months.
The industry-basis index for wood container and pallet manufacturing (PCU321920321920) was −12.0% on the year.
U.S. retail diesel averaged $3.972 a gallon over the month (EIA, 4 weekly readings), −15.7% 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 December 2023
| Series | Base | Index | Month | Year |
|---|---|---|---|---|
| Wood pallets WPU084101 | 1982 = 100 | 352.541 | −0.6% | −12.8% |
| Pallets incl. wood/metal combination WPU0841 | 1982 = 100 | 352.541 | −0.6% | −12.8% |
| Wood container & pallet mfg (industry) PCU321920321920 | Dec 2003 = 100 | 187.325 | −0.6% | −12.0% |
| Pallets, industry basis PCU3219203219205 | Dec 2003 = 100 | 194.894 | −0.6% | −12.8% |
| Industry primary products PCU321920321920P | Dec 2003 = 100 | 181.210 | −0.6% | −12.0% |
| Lumber WPU081 | 1982 = 100 | 244.746 | +1.8% | −7.4% |
| Softwood lumber WPU0811 | 1982 = 100 | 241.386 | +0.2% | −14.6% |
| Hardwood lumber WPU0812 | 1982 = 100 | 260.047 | +4.1% | +4.4% |
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 $8.72 in December 2023. Method: $10.00 × (index in December 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, December 2023 is not a review month: the next review, on 1 April 2024, uses the February 2024 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 $3.972 a gallon across 4 weekly EIA readings in December 2023 (−15.7% 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.