Pallet pooling: how CHEP, PECO and iGPS rental works

Most pallets in North America are wood pallets that a shipper bought outright and gave away with the load, the so-called white-wood or one-way model. Pooling is the alternative: a company owns a fleet of identical pallets and rents them to shippers, then takes them back. In US grocery and consumer goods, pooled pallets are a large share of the pallets on the road.

#How does pallet pooling work?

The cycle, for a typical manufacturer shipping to a retailer:

1. Issue. The pooler delivers inspected pallets from a service center (depot) to the manufacturer. The manufacturer's account is charged an issue fee.
2. Use. The manufacturer loads product and ships it to the retailer's distribution center.
3. Transfer. The manufacturer reports the shipment (who received how many pallets). Responsibility for the pallets transfers to the receiver, or ends, depending on the pooler's model.
4. Recovery. Once the retailer unloads the product, the pooler collects empty pallets from the retailer's DC or stores.
5. Inspect and repair. At the depot, pallets are sorted, inspected, repaired to the pooler's standard, and sometimes repainted.
6. Reissue. Pallets go back out to the next manufacturer.

The pooler owns the pallets throughout. The users only ever rent them.

#North American pallet pools

Globally, CHEP also runs pools in Europe (1200 × 800 and 1200 × 1000 mm), Australia (1165 × 1165 mm) and elsewhere. In Europe, open exchange of EPAL pallets is another common model.

#Pooling vs exchange vs white-wood

#What does pallet pooling cost?

Pooling contracts are negotiated, and fee structures differ between poolers. Common fee types:

Industry estimates put the total cost roughly in the $5–15 range per pallet use (2026 US estimate). The real number depends on your lanes, volume, how quickly you turn pallets and how many end up outside the pool. Compare it with the cost per trip of buying: pallet cost.

#Advantages of pooling

• No capital in pallets and no disposal or recovery work.
• Consistent quality. Pooled pallets are inspected and repaired to one standard, which suits automation and retailer inspection.
• Retailer acceptance. Some receivers require it. Costco requires iGPS, PECO or CHEP block pallets for North American deliveries. See Costco pallet requirements.
• Full 4-way block design that pallet jacks can enter from any side and that racks in either direction.
• Sustainability. Pooled pallets are reused many times, and poolers publish lifecycle claims.

#Disadvantages

• Only standard sizes, essentially 48 × 40 in in North America. No custom pallets.
• Heavier than many white-wood pallets.
• Ongoing fees, which rise if pallets sit idle.
• Reporting burden. You must report where pallets go, or you pay for them.
• Lost pallet charges when customers outside the pool keep them.
• Receivers must be in the network. If your customer does not return pallets to the pooler, pooling fails.
• Export coverage is limited to certain countries and requires HT pallets.

See pooled vs white-wood pallets for a direct comparison.

#Pooled pallet specifications compared

All figures are as published by the poolers; check their current specification sheets. For how to compare load ratings, see pallet load capacity.

#Pooling outside North America

Pooling is common worldwide. In Europe, CHEP pools 1200 × 800 and 1200 × 1000 mm block pallets, while many companies use the EPAL open exchange system, in which licensed Euro pallets are swapped like-for-like between shippers, carriers and receivers. In Australia, CHEP and Loscam pool 1165 × 1165 mm pallets. If you ship internationally, pooled pallets from one region generally cannot be returned into another region's pool, and exported pallets must meet ISPM 15. See Euro pallets and EPAL.

#Questions to ask before signing a pooling contract

1. Which fees apply to my lanes: issue, transfer, dwell, delivery, collection, loss?
2. How are lost pallets counted and charged?
3. How do I report shipments, and what happens if a report is late?
4. Which of my customers are in your recovery network?
5. What is your pallet quality standard, and how are rejected pallets handled?
6. What does it cost to switch pallets in or out at the start and end of the contract?

#Who should pool?

Pooling usually pays when you:

• Ship standard 48 × 40 in pallets
• Ship to grocery, club and mass-retail DCs that participate in the pools
• Want to avoid buying and disposing of pallets
• Have pallets turning quickly through your plant

Buying usually pays when you:

• Need custom sizes, winged or special pallets
• Ship to many small receivers or to export destinations without coverage
• Run a closed loop where you control returns
• Store pallets for long periods before use

#If pooled pallets turn up at your site

Pooled pallets remain the property of the pooler. You cannot sell, burn, keep or repurpose them. If blue, red or iGPS pallets arrive at your site, stack them separately and request a collection through the pooler's recovery program. Both CHEP and PECO run collection services for pallets found outside the network. See CHEP pallets and PECO pallets.

#Specifying it

If you are evaluating pooling, ask each pooler for:

• Fee schedule on your specific lanes and volumes
• Service center locations near your plants
• Whether your main customers participate
• Lost-pallet and dwell policies
• HT availability for export and Mexico–US
• Pallet specifications (dimensions, weight, rated loads, racking)

If you still need white-wood pallets for part of your volume, the 48 × 40 block template matches the pooled-pallet style, and the GMA 48 × 40 template is the standard one-way pallet.