EPAL: End of swap agreement with UIC decided

On 21 February 2017, the Board of the European Pallet Association e.V. (EPAL) unanimously decided to terminate the swap agreement between EPAL and Rail Cargo Austria AG (RCA) with effect from 1 May 2017.
stacked Europallettes from EPAL stacked Europallettes from EPAL
stacked Europallettes from EPAL

On 21 February 2017, the Board of the European Pallet Association e.V. (EPAL) unanimously decided to terminate the swap agreement between EPAL and Rail Cargo Austria AG (RCA) with effect from 1 May 2017.

In October 2014, EPAL, together with the RCA as the managing railway of the UIC working group „Palletisation issues“ agreed that EPAL Euro pallets and UIC/EUR pallets can be exchanged with each other. EPAL now recommends to stop exchanging EPAL Euro pallets for UIC/EUR pallets.

The EPAL Executive Board justifies this step with significant deficiencies in the organisation of the exchange pool by the UIC, including in the areas of quality assurance and combating the import of counterfeit UIC/EUR pallets into the EU. In order to avoid disadvantages for users, appropriate transitional periods apply to the exchange of UIC/EUR pallets that were produced by the end of February 2017.

Martin Leibrandt, EPAL CEO, warns urgently: „EPAL is no longer able to guarantee that UIC/EUR pallets meet the requirements that industry, trade and logistics rightly expect of them. Quality and safety of EPAL Euro pallets pallets. In particular, the uncontrolled import of counterfeit UIC/EUR pallets jeopardises the quality and safety of the EPAL Euro pallet pool. According to EPAL's research, there are over 4 million counterfeit UIC/EUR pallets from Ukraine on the market and the number is constantly increasing. Eastern European gangs in particular are increasingly focussing on the counterfeiting of UIC/EUR pallets, as the counterfeiting of EPAL Euro pallets has become risky due to the joint activities of EPAL, customs authorities and lawyers. EPAL takes responsibility for the quality and safety of the EPAL Euro pallet pool. Industry, trade and logistics can rely on this.“

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Organisation and internationally standardised quality assurance is carried out solely by EPAL

According to EPAL, since the exchange agreement between EPAL and the UIC was concluded in October 2014, no measures comparable to EPAL's activities have been taken by the UIC to protect the quality and safety of UIC/EUR pallets. In many countries, there is a lack of any organisation of the exchange pool by the UIC. At the same time, the UIC had rejected EPAL's offer to take over the organisation of quality assurance and brand protection for UIC/EUR pallets after two and a half years of negotiations.

In view of the negative consequences EPAL has stated that it is no longer in a position to continue the recommendation to exchange EPAL Euro pallets and UIC/EUR pallets. In EPAL's view, the termination of the exchange agreement is the only way to maintain the quality and safety of the EPAL Euro pallet pool in the future. Effectively protect the future. EPAL therefore recommends using and exchanging only EPAL Euro pallets in future to protect the safety of employees, goods and logistics processes.

[infotext icon]The recommendation to discontinue the exchange between EPAL Euro pallets and UIC pallets will apply from 1 May 2017. The previous recommendation that pallets with the „EUR“ marking (UIC, MAV, CD, ADUF, Green Cargo, etc.) can also be exchanged will continue to apply.) can still be exchanged, but for a limited period until 31 December 2021 and restricted to pallets manufactured by 28 February 2017 in strict compliance with UIC leaflets 435-2 to 435-6.[/infotext]