§1The reading
The BLS wood pallet PPI (WPU084101) was 389.587 in March 2023, down 1.0% on the month and down 8.9% on the year.
Over three months the index moved −3.7%.
It was the lowest reading since December 2021.
Across the five years to March 2023, the index ranged from 257.6 (April 2018) to 444.2 (April 2022).
Lumber (WPU081) was −40.7% on the year, softwood −49.3% and hardwood −14.3%; lumber ran 31.8 points behind pallets over twelve months.
The industry-basis index for wood container and pallet manufacturing (PCU321920321920) was −8.2% on the year.
U.S. retail diesel averaged $4.211 a gallon over the month (EIA, 4 weekly readings), −17.5% 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 March 2023
| Series | Base | Index | Month | Year |
|---|---|---|---|---|
| Wood pallets WPU084101 | 1982 = 100 | 389.587 | −1.0% | −8.9% |
| Pallets incl. wood/metal combination WPU0841 | 1982 = 100 | 389.587 | −1.0% | −8.9% |
| Wood container & pallet mfg (industry) PCU321920321920 | Dec 2003 = 100 | 205.959 | −0.9% | −8.2% |
| Pallets, industry basis PCU3219203219205 | Dec 2003 = 100 | 215.374 | −1.0% | −8.9% |
| Industry primary products PCU321920321920P | Dec 2003 = 100 | 199.181 | −0.9% | −9.3% |
| Lumber WPU081 | 1982 = 100 | 263.853 | −1.1% | −40.7% |
| Softwood lumber WPU0811 | 1982 = 100 | 274.339 | −1.0% | −49.3% |
| Hardwood lumber WPU0812 | 1982 = 100 | 259.786 | −1.3% | −14.3% |
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 $9.11 in March 2023. Method: $10.00 × (index in March 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, March 2023 is not a review month: the next review, on 1 July 2023, uses the May 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 $4.211 a gallon across 4 weekly EIA readings in March 2023 (−17.5% 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.