Pallet pooling
Also called: pallet rental, pooled pallets, pallet pool
Pallet 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.
In depth: Pallet pooling: how CHEP, PECO and iGPS rental works
In North America, the best-known pools are CHEP (blue wood block pallets), PECO (red wood block pallets) and iGPS (plastic pallets). All three are other companies' brands; pallet.design has no affiliation with any of them. Pooled pallets in North America are 48 × 40 in block pallets.
How a pool works
| Step | Who |
|---|---|
| Issue pallets to the shipper | Pool operator |
| Ship product on them | Shipper |
| Report where they went | Shipper (the pool bills against this) |
| Hold empties for collection | Receiver (retailer or distributor) |
| Collect, inspect, repair, reissue | Pool operator |
Fees typically include an issue or rental fee per pallet, plus charges such as transfer, damage or loss fees. Contracts vary. Get current terms from the operator.
Why it matters
- Costco requires pooled block pallets and accepts purpose-built pallets only by exception, per its pallet policy.
- Pooled pallets are designed for many trips and full four-way handling.
- The shipper does not own the pallet, so it cannot choose the design or size.
When pooling does not fit
Custom sizes, export shipments that will not return, and loads that need a special design usually use owned pallets (white wood, one-way or closed loop). The pooled vs white wood comparison covers the trade-offs.
On a spec sheet or RFQ
If a customer requires a pooled pallet, there is nothing to design. Say "pooled (customer-specified pool)" in the shipping requirements.
Common confusions
Pooled pallets remain the pool's property. Selling or keeping them is not allowed.
Related
- 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.
- GuidesCHEP pallets: what the blue pallets are, how rental works, and what to do if you have oneCHEP pallets are the blue pallets rented through CHEP's pool. In North America they are 48 × 40 in (1219 × 1016 mm) wood block pallets CHEP rates at 2,800 lb (1,270 kg). CHEP owns every one and never sells them: if you receive some, keep them apart and request a collection.
- GuidesPECO pallets: the red rental pallets, specs, and how to return themPECO pallets are the red pallets rented through PECO Pallet's pooling network in the US, Canada and Mexico. They are 48 × 40 in (1219 × 1016 mm) wood block pallets that PECO rates at 2,800 lb (1,270 kg). PECO owns them and does not sell them: if you find red PECO pallets, report them to PECO for pickup.
- GlossaryPallet exchangePallet 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.
- TypesBlock pallet: construction, dimensions and usesA block pallet is a wooden pallet whose deck sits on blocks, usually nine arranged 3 × 3, joined by stringerboards. The gaps between blocks give full 4-way entry for both forklifts and pallet jacks. EUR/EPAL, CP and the pooled 48 × 40 in pallets of CHEP and PECO are all block pallets.
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. 268 words.