Pallet grades: Grade A, Grade B, remanufactured and combo pallets
Used pallets are sold by grade. Grade A (#1) pallets are clean and sound with few or no repairs; Grade B (#2) pallets are sound but repaired, often with companion stringers. Remanufactured and combo pallets are rebuilt from used and new parts. Definitions vary by vendor, so write yours down.
Pallet grades are how the recycled pallet market sorts used pallets into price tiers. They are useful shorthand, but they are not a standard. One vendor's Grade A can be another's Grade B, so a grade name on a quote is only as good as the definition behind it.
Used pallet grades are not governed by a single industry standard. The definitions below are typical of how US recyclers describe their grades. Always get your vendor's written grade definition, or give them yours.
Pallet grades at a glance
| Grade | Also called | Condition (typical) | Repairs | Typical 48 × 40 price, 2026 US estimate |
|---|---|---|---|---|
| Premium A | Premium #1, "like new" | Near-new appearance, bright wood, uniform | None | Upper end of Grade A |
| Grade A | #1, A-grade | Sound, clean, all boards intact, stringers solid | None or minimal; no companion stringers or plates | $6–14 |
| Grade B | #2, B-grade | Sound and serviceable | Replaced or doubled boards; companion stringers or plates | $3–8 |
| Grade C / economy | #3, utility | Usable for internal or one-way moves | Multiple repairs; mismatched | Low |
| Core | Cores | Unsorted used pallets bought for repair | Any | What recyclers pay, often a few dollars or less |
| Remanufactured | Reman, rebuilt | Built from salvaged components, often to a non-standard size | N/A (rebuilt) | Varies by size |
| Combo | Combination | New and recycled components mixed | N/A | Between reman and new |
Prices are estimates for standard 48 × 40 in stringer pallets and vary widely by region; see pallet cost.
Grade A (#1) pallets
A Grade A pallet is a used pallet in the best condition a recycler sells. Typical vendor criteria:
- All deckboards present and securely nailed; no broken, cracked or split boards beyond small checks
- Stringers solid, not cracked; no companion stringers, plugs or metal plates
- No protruding nails
- Clean: no stains, oil, odors, debris or mold
- Usually the standard GMA configuration: 7 top boards, 5 bottom boards, 3 notched stringers
- Some vendors require uniform, bright wood (no gray weathering) for Premium A
Grade A is what retailers with strict pallet rules expect when they accept used pallets. Walmart's supply chain standards, for example, require pallets to meet or exceed Grade A, and for stringer pallets explicitly disallow double stringers, patched boards and metal repair plates.
Grade B (#2) pallets
A Grade B pallet is sound and safe to use but shows repairs. Typical criteria:
- Boards may be replaced, or doubled (a new board nailed alongside a damaged one)
- Stringers may have companion stringers or metal connector plates
- Mixed wood colors and species
- May have fewer boards than a standard GMA pallet, or wider lead boards
- Still no broken or missing boards, no protruding nails, no heavy contamination
Grade B is the workhorse of one-way and internal shipping. Amazon FBA is widely reported to accept GMA standard Grade B or better. See Amazon pallet requirements.
Remanufactured and combo pallets
Remanufactured pallets are built by dismantling used pallets and reassembling the salvaged boards and stringers, often into non-standard sizes. They are the recycled route to a custom size.
Combo pallets mix recycled components with new ones, commonly new stringers with recycled deckboards, or the reverse.
The Pallet Design System classifies manufacture as New, Remanufactured or Remanufactured/Combo, and the Uniform Standard for Wood Pallets has rules for recycled lumber in these pallets. If you buy reman or combo pallets for export, they must be heat-treated and marked as a whole after assembly; old ISPM 15 marks do not carry over. See heat-treated pallets.
Lumber grade is a different thing
Don't confuse pallet grades with lumber grades. Grade A and Grade B describe the condition of a whole used pallet. Lumber grades such as Standard, Utility and Economy describe the defects allowed in new boards. A new pallet built from Utility-grade lumber is not a "Grade B pallet". See pallet lumber grades.
Repair classes in the Uniform Standard
The Uniform Standard for Wood Pallets takes a more technical approach than market grades. It defines repair methods (replacing boards, companion stringers, plugs, metal connector plates), limits on which species and sizes can be used in repairs, and recommends marking repaired pallets with the repair class, repairer, date and owner. Its durability model assumes repaired joints recover only part of their original strength, which is why heavily repaired pallets do not last as long. See pallet repair.
How recyclers grade pallets
Grading happens at the recycler's sort line. A typical flow:
- Size sort. 48 × 40 in pallets are separated from other sizes, and pooled pallets (blue, red, iGPS plastic) are pulled out for return.
- Visual check. Each pallet is looked over on both faces for broken, cracked or missing boards, stringer damage and contamination.
- Grade assignment. Pallets that pass with no repairs become Grade A; those needing minor repair go to the repair line and come out Grade B; poor pallets go to dismantling or grinding.
- Repair. Replacement boards and companion stringers are added.
- Stacking and banding by grade, often in stacks of about 20–25.
Because the decision is made by eye at speed, grades vary between plants. Buyers who need consistency inspect a sample of every delivery. See pallet inspection.
Grade and pallet performance
A repaired pallet is not as strong or durable as a new one. Durability modeling in the Pallet Design System assumes a repaired joint recovers only about 65% of its original damage resistance, and each board replacement further weakens the connection. In practice:
- Grade A pallets are close to new in performance for most loads.
- Grade B pallets are fine for floor-stacked and one-way loads but are a poorer choice for racking and heavy loads.
- Companion stringers add wood but not always stiffness where it matters, and they can narrow fork openings.
Which grade should you buy?
| Use | Suggested grade | Why |
|---|---|---|
| Retail supply chains with strict specs (Walmart) | Grade A or new | Explicit Grade A requirement |
| Amazon FBA | Grade B or better (confirm) | Widely reported minimum |
| Food and pharma | New or Premium A | Unknown history of used pallets |
| Automation (conveyors, AS/RS) | New or Premium A | Board variation causes jams |
| Racked storage | Grade A or new | Repairs reduce stiffness and strength |
| Internal moves, one-way domestic | Grade B | Lowest cost that is still safe |
| Non-standard size | Remanufactured, combo or new | Recycled A/B are mostly 48 × 40 |
| Export | Any, if HT-marked; reman and repaired need re-treatment | ISPM 15 |
How to write a grade into an order
Because definitions vary, put the criteria on the purchase order:
- Size and configuration (for example 48 × 40 in, 7 top / 5 bottom boards, 3 notched stringers)
- Allowed repairs: none, replaced boards only, or companion stringers and plates allowed
- Maximum number of repaired components
- Cleanliness: no stains, oil, odors, mold, debris
- No protruding nails; no broken, split or missing boards
- Painted or pooled pallets excluded
- ISPM 15 mark required, if exporting
- Acceptance sampling: how many pallets you will inspect per load, and what happens to rejects
The pallet inspection guide has a receiving checklist you can adapt. If no recycled grade fits your size or performance needs, the GMA 48 × 40 template is a starting point for a new-pallet spec.
Frequently asked questions
What is a Grade A pallet?
A used pallet, usually 48 × 40 in, that is structurally sound, clean and has no or minimal repairs, with no companion stringers or plates. Some vendors also require uniform appearance and bright wood. Definitions vary.
What is a Grade B pallet?
A used pallet that is sound and serviceable but has been repaired: replaced or doubled boards, and often companion stringers or metal plates. It may be darker or mismatched in color.
Is there an official pallet grading standard?
No single standard governs used pallet grades in the US. The Uniform Standard for Wood Pallets defines repair classes and quality levels, and large buyers such as Walmart publish their own Grade A requirements, but vendors grade to their own rules.
Can I use Grade B pallets for Amazon or Walmart?
Amazon is widely reported to accept GMA Grade B or better. Walmart's supplier standards require Grade A and do not allow patched boards, double stringers or metal repair plates. Check the current retailer guide.
What is a core pallet?
A used pallet bought by a recycler for repair or resale, before sorting and grading. Recyclers pay for cores by condition and size.
Sources and references
- Uniform Standard for Wood Pallets, repair and remanufacture (Woodpack Global, formerly NWPCA)
- Walmart Supply Chain Standards, Pallet Standards section, August 2023 edition (Walmart Inc.)
Related
- GlossaryWhat is a grade A pallet?A grade A (#1) pallet is a used pallet, usually a 48 × 40 in GMA-style stringer pallet, in the best common condition grade: sound, with few or no visible repairs and no repaired stringers. There is no single standard definition, so each supplier's grade rules apply.
- 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.
- GlossaryRemanufactured palletA remanufactured pallet is a pallet assembled from components reclaimed from dismantled used pallets, sometimes to a different size or design from the originals. Under ISPM 15, a pallet with more than about one third of its components replaced counts as remanufactured and must be re-treated and re-marked.
- 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.
- ComparisonsNew vs recycled pallets: cost, quality and when to use eachChoose recycled (used) pallets for standard 48 × 40 in sizes when price matters and your customers accept Grade A or B. Choose new pallets for custom sizes, automated systems, exports, food and pharma, retailer programs that require new, or when you need a documented, consistent spec.
- TypesRecycled pallets: grades, remanufacturing, cost and how to buy themA recycled pallet is a used wooden pallet that has been sorted, repaired or rebuilt and resold. Used 48 × 40 in pallets are sold as Grade A (few or no repairs) or Grade B (repaired). They cost less than new, but grade definitions vary by supplier and any repair voids an existing ISPM 15 mark.
- GuidesPallet inspection: an incoming inspection checklist for new and used palletsInspect incoming pallets against a written spec. Check a sample from every delivery for size, board count and thickness, broken boards or stringers, protruding nails, moisture, mold, stains and the ISPM 15 stamp. Reject failures, record why, and share the results with the supplier.
More in Buying and lifecycle
- GuidesHow much does a pallet cost? New, used, plastic and custom pricesIn the US in 2026, a new 48 × 40 in wood stringer pallet typically costs about $10–25, a used Grade A about $6–14 and a Grade B about $3–8. Heat treatment adds about $1–3. Plastic pallets run roughly $40–200 and metal $150–600 or more. These are estimates that move with lumber, resin and freight markets; get quotes.
- GuidesHow to reduce pallet costs without more damageThe biggest pallet savings come from buying the right pallet, not the cheapest: remove lumber the load does not need, match grade and treatment to the use, quote one spec with several local shops, and cut losses through recovery, repair or pooling. Check a cheaper pallet does not raise damage.
- 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.
- 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.
- GuidesPallet recycling: how used pallets are repaired, rebuilt and groundUsed wood pallets are widely recycled in the US. Recyclers collect them, sort by size and grade, repair the good ones for resale, dismantle damaged ones for parts to build remanufactured pallets, and grind the rest into mulch, animal bedding or biomass fuel. Businesses usually get free pickup or payment for full loads.
Last reviewed 2026-09-24. 1,302 words.