PECO pallets: the red rental pallets, specs, and how to return them

Red pallets marked PECO are rental pallets owned by PECO Pallet, a North American pallet pooling company. Like CHEP's blue pallets, they move from manufacturers to retailers and back to PECO's depots for inspection and repair. They are never for sale.

#What is a PECO pallet?

A PECO pallet is a red 48 × 40 in wood block pallet rented through PECO's pallet pool. Grocery, consumer goods, produce and retail supply chains use them. PECO serves the US, Canada and Mexico through a network of service centers and recovery locations, and describes its business as block pallet rental.

#PECO 48 × 40 pallet specifications

From PECO's published specifications:

The classification line is written in the same style as a Pallet Design System spec. For what those terms mean, see how to read a pallet spec sheet.

#How PECO rental works

The model is the same as other pools:

1. A manufacturer opens a PECO account and orders pallets.
2. PECO delivers inspected red pallets from a service center.
3. The manufacturer ships product to retailers and distributors and reports the shipments.
4. PECO recovers empties from those receivers.
5. PECO inspects, repairs and reissues them.

Fees are negotiated and PECO does not publish a price list; ask PECO how issue, transfer and any time-based charges apply on your lanes. For costs and when pooling pays, see pallet pooling.

Costco accepts PECO block pallets (PECO-HT across the Mexico–US border) as one of its three required pallet sources for North American deliveries. See Costco pallet requirements. Walmart lists PECO among approved poolers for supplier shipments; Walmart Fulfillment Services does not want marketplace inventory on PECO or CHEP pallets. See Walmart pallet requirements.

#Who owns PECO pallets?

PECO does, always. PECO states that its red pallets remain its property and that it is illegal to sell, buy, exchange or repurpose them. That means:

• You cannot buy PECO pallets from PECO or anyone else.
• You cannot sell PECO pallets you have.
• You cannot reuse them for your own shipments without a PECO account.
• You cannot dismantle them for wood or projects.

#What to do if you have PECO pallets

PECO asks to be told about even one or two red pallets found "in the wild". To arrange pickup:

1. Separate the red pallets from your own stock.
2. Contact PECO's recovery team using the options on its pallet recovery page: an online request form, the customer portal for account holders, a recovery phone line and a recovery email address.
3. Keep them dry and stacked until collected.

Businesses that receive PECO pallets regularly (for example, a distribution center or retailer) can set up routine collection with PECO.

#How to recognize a PECO pallet

Some companies paint their own pallets red. Check for PECO branding before assuming. See pallet stamps and markings.

#Why PECO pallets are built the way they are

A pooled pallet is designed for a long life across many users, so its construction differs from a one-way white-wood pallet:

• Block construction, full 4-way entry. Pallet jacks and forklifts can enter from all four sides, which suits retail DCs where pallets are picked up from any direction.
• Many boards and fasteners. PECO lists 26 boards and 138 fasteners on its 48 × 40 in pallet. A typical one-way GMA stringer pallet has 12 deckboards and about 84 nails. More wood and more nails spread impact damage and let the pooler replace parts during repair.
• Premium-grade kiln-dried SYP. Dry, dense softwood keeps weight and mold under control and holds nails well.
• Rated for racking in both directions. PECO publishes edge-racking spans for both the 40 in and 48 in directions, which matters in retailer overstock racking.

The trade-off is weight and cost. A block pallet built this way costs more to make than a GMA stringer pallet, which only works because a pooler spreads that cost over many trips. See block vs stringer pallets.

#Using PECO pallets in your operation

If you are a PECO customer, a few practical points reduce fees and disputes:

1. Report shipments promptly. Pooling depends on knowing where each pallet went. Late or missing reports can leave pallets on your account.
2. Keep empties separate from white-wood and other pooled pallets, so PECO collects only its own and you do not send its pallets to a recycler by mistake.
3. Do not repair PECO pallets yourself. Repairs are PECO's job. Retailers such as Costco reject pooled pallets that show unauthorized modifications or repairs.
4. Order HT pallets early for Mexico–US or export loads. PECO lists heat treatment as an extra-charge option with a longer delivery window.
5. Check your customers participate. Pooling works when receivers return pallets to the pool. Ask PECO whether your main customers are in its recovery network.

#PECO pallets in racking

PECO publishes edge-racking spans for its pallet (34 or 36 in when racked across the 40 in width, 44 in across the 48 in length). If your rack beams are set wider, ask PECO whether its rating still applies.

#What PECO pallets are not

• Not a Euro pallet. They are 48 × 40 in, not 1200 × 800 mm. For European shipments see Euro pallets.
• Not plastic. Red plastic pallets exist from other makers, but PECO's standard pallet is wood.
• Not a GMA stringer pallet. They share the 48 × 40 in footprint with the GMA pallet, which is why PECO calls its product a GMA pallet, but they are block construction.

#PECO vs CHEP

Both are accepted by Costco for North American deliveries. The choice between them is commercial: coverage at your plants and customers, fees, and service. See CHEP pallets and pooled vs white-wood.

#If you want to own a similar pallet

You can buy a 48 × 40 in block pallet with the same general layout from a pallet shop. The 48 × 40 block template is a perimeter-base, full 4-way block pallet you can edit and send for quotes. pallet.design is not affiliated with PECO Pallet.