Pallet exchange
Also called: pallet swap, exchange pallets, one-for-one exchange
Pallet exchange is an arrangement where a receiver hands back an equal number of empty pallets of the same type and quality for the loaded pallets it receives, so the shipper does not lose pallets with each delivery.
In depth: Pallet pooling: how CHEP, PECO and iGPS rental works
Pallet exchange keeps pallets in circulation without a pool operator. The driver delivers loaded pallets and leaves with the same number of empties.
How it works
| Model | Typical setting |
|---|---|
| Open exchange of standard pallets | EPAL euro pallets in Europe, where pallets meeting EPAL's exchange criteria are swapped |
| Exchange of generic 48 × 40 in pallets | Some US grocery and distribution lanes, using white-wood pallets |
| Pallet accounts | Instead of physical swaps, balances are recorded and settled later |
Why it matters
Exchange only works if the pallets are interchangeable: same footprint, same design and a shared quality standard. That is why it grew around standard designs such as the EPAL 1 and the GMA 48 × 40 in stringer pallet. The main disputes are over quality: receivers tend to hand back their worst pallets, and the shipper's pool slowly degrades. EPAL publishes classification criteria for used EPAL pallets to reduce this.
Why it matters for pallet design
A custom pallet cannot be exchanged in an open system. If you design a custom footprint, plan for one-way use, a closed loop, or pooling.
On a spec sheet or RFQ
State whether pallets must be exchangeable, and against which standard (for example EPAL-licensed or GMA-style 48 × 40 in to a stated grade).
Common confusions
Pallet exchange is not pallet pooling. In a pool, a company owns the pallets and rents them. In an exchange, users own pallets and trade them.
Related
- GlossaryPallet poolingPallet pooling is a rental system in which a pool operator owns the pallets, issues them to shippers, collects them from receivers, and inspects and repairs them for reuse. Shippers pay fees per pallet instead of buying pallets.
- GlossaryEPALEPAL (European Pallet Association e.V.) is the organization that licenses manufacturers and repairers of EPAL Euro pallets and other EPAL load carriers and controls their quality. The EPAL 1 Euro pallet is a 1200 × 800 × 144 mm block pallet used in open pallet exchange across Europe.
- GlossaryWhite woodWhite wood (whitewood) is the pallet trade's name for generic, unpainted wood pallets, usually 48 × 40 in GMA-style stringer pallets, that users buy, own and trade, as opposed to painted pooled pallets. In lumber, whitewood also names a group of light-colored softwoods such as spruce and fir.
- GuidesPallet pooling: how CHEP, PECO and iGPS rental worksPallet pooling is renting pallets instead of buying them. A pooler such as CHEP (blue), PECO (red) or iGPS (plastic) owns standard 48 × 40 in pallets, issues them to shippers, collects them from receivers, then inspects, repairs and reissues them. You pay fees per use, not a purchase price.
- ComparisonsPooled vs white wood pallets: rent or buy?Choose pooled pallets (rented from CHEP, PECO or iGPS) when you ship full pallets to retail and grocery DCs in the pool and want consistent pallets without managing returns. Choose white wood (pallets you buy) for one-way shipping, custom sizes, small volumes or customers outside the pools.
More in Commercial and lifecycle
- GlossaryClosed loopA closed loop is a supply chain in which pallets travel between a fixed set of sites and are returned to the owner for reuse, for example between a parts supplier and an assembly plant. Because the pallets come back, higher-cost custom, plastic or metal pallets can pay for themselves.
- GlossaryCombo palletA combo pallet is a wood pallet built from a mix of new and recycled components, commonly new stringers with reclaimed deckboards or the reverse. It sits between new and fully recycled pallets in cost and consistency.
- GlossaryCore palletA core is a used pallet, usually a standard 48 × 40 in stringer pallet, that a pallet recycler buys or collects as raw material to sort, repair and resell. Cores that cannot be repaired are dismantled for parts or ground.
- GlossaryGrade B palletA grade B (#2) pallet is a used pallet, usually a 48 × 40 in GMA-style stringer pallet, that has been repaired more than a grade A: it may have companion stringers, metal plates or replaced deckboards. It is functional but less uniform, and definitions vary by supplier.
- GlossaryMOQ (minimum order quantity)MOQ (minimum order quantity) is the smallest quantity a supplier will produce or sell in one order. For pallets it depends on the material and process: wood pallets need little setup, while custom molded plastic pallets need a mold and very large runs.
- GlossaryOne-way palletA one-way pallet is a pallet designed to make one trip and not come back, such as export pallets or shipments to customers who keep or discard the pallet. It is usually built lighter and from lower-grade material than a reusable pallet.
Last reviewed 2026-09-24. 255 words.