§1The reading
The BLS wood pallet PPI (WPU084101) was 388.404 in April 2023, down 0.3% on the month and down 12.6% on the year.
Over three months the index moved −3.4%.
It was the lowest reading since December 2021.
Across the five years to April 2023, the index ranged from 258.3 (May 2018) to 444.2 (April 2022).
Lumber (WPU081) was −32.1% on the year, softwood −38.9% and hardwood −15.2%; lumber ran 19.5 points behind pallets over twelve months.
The industry-basis index for wood container and pallet manufacturing (PCU321920321920) was −11.6% on the year.
U.S. retail diesel averaged $4.099 a gallon over the month (EIA, 4 weekly readings), −19.9% 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 April 2023
| Series | Base | Index | Month | Year |
|---|---|---|---|---|
| Wood pallets WPU084101 | 1982 = 100 | 388.404 | −0.3% | −12.6% |
| Pallets incl. wood/metal combination WPU0841 | 1982 = 100 | 388.404 | −0.3% | −12.6% |
| Wood container & pallet mfg (industry) PCU321920321920 | Dec 2003 = 100 | 205.303 | −0.3% | −11.6% |
| Pallets, industry basis PCU3219203219205 | Dec 2003 = 100 | 214.720 | −0.3% | −12.6% |
| Industry primary products PCU321920321920P | Dec 2003 = 100 | 198.558 | −0.3% | −12.7% |
| Lumber WPU081 | 1982 = 100 | 261.220 | −1.0% | −32.1% |
| Softwood lumber WPU0811 | 1982 = 100 | 271.188 | −1.1% | −38.9% |
| Hardwood lumber WPU0812 | 1982 = 100 | 257.795 | −0.8% | −15.2% |
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 $8.74 in April 2023. Method: $10.00 × (index in April 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, April 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 $4.099 a gallon across 4 weekly EIA readings in April 2023 (−19.9% 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.