Businesses fear omicron may trigger flare-up of pallet squeeze

Simon Evans, Carrie LaFrenz and Jenny Wiggins

Nov 29, 2021 – 4.51pm

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Australian businesses fear a flare-up of a pallet squeeze situation where a shortage of pallets severely curbs the free-flow of goods if governments overreact and impose harsh restrictions as the world wrestles with the new omicron variant of COVID-19, while retailers worry about a potential dent in consumer confidence.

Sanjay Dayal, the chief executive of ASX-listed packaging company Pact Group, said it was the potential reaction to the new strain by governments and health authorities that risked a worsening of the pallet shortage, which has gripped many industries.

Simon Evans writes on business specialising in retail, manufacturing, beverages, mining and M&A. He is based in Adelaide.

Carrie LaFrenz is a senior journalist covering retail/consumer goods. She previously covered healthcare/biotech. Carrie has won multiple awards for her journalism including financial journalist of the year from The National Press Club.

Jenny Wiggins writes on business, specialising in infrastructure, telecommunications and transport.