The used pallet trade is the business of collecting, sorting, repairing and reselling pallets that have already served at least one trip. It is large: in the United States, about 326 million recovered pallets were repaired and resold in 2016 compared with about 513 million new pallets built, according to Virginia Tech research. Buyers value used pallets for lower cost and reuse, but quality varies widely, so grading is central.
How the trade is organized
Used pallets flow through a chain of specialists. Shippers and warehouses accumulate unwanted pallets; collectors, often called pallet recyclers, pick them up; recyclers sort them by size, type and condition; and sound pallets are resold, while repairable ones are fixed and the remainder is dismantled for parts or ground into mulch, bedding or fuel. See the pallet recycling business and how pallet recycling works.
The raw material of this trade is the core: a used pallet that can be reused or repaired. In the US many recyclers buy cores from businesses, or take them for free to save disposal costs, and supply "core" pallets to customers who exchange them. Core availability limits how many used pallets can be sold.
In the 2016 Virginia Tech study of 390 million recovered pallets, 65% were repaired and resold as used pallets, 18.1% were dismantled for other uses, 10.6% were ground or chipped, 5.5% were sold without repair, and under 1% went to landfill.
Grades
There is no single worldwide grading standard. Grading systems are set by industry practice, associations, large buyers and EPAL.
North America (48 × 40 in). The Grocery Manufacturers Association (now the Consumer Brands Association) established the 48 × 40 in pallet as the industry standard in the 1960s, but no longer governs specifications, so recyclers use their own written grades. A typical modern scheme, published by one recycler, has three levels: premium A1 (nearly new appearance, no stringer repairs, 60% or more bright wood), A (minor stringer repairs allowed, clean and functional) and B (repaired stringers allowed, wider deckboard spacing, cosmetic wear acceptable). These align with older GMA classes 1A, 1 and 2. See the GMA pallet.
Europe (EPAL). EPAL Euro pallets in exchange are classed A, B or C, as summarized below; a licensed repair is needed to restore a damaged pallet.
| Class | Typical description | Where used |
|---|---|---|
| EPAL A | New or like new, light colored | Food, pharmaceutical, automated warehouses |
| EPAL B | Used, dark, minor repairs | General exchange |
| EPAL C | Heavily used, adhesions tolerated | Exchange, industrial use |
More on the European system is in the pallet exchange system and EPAL quality classes.
Pricing logic
Prices for used pallets are not quoted here; they change by region and month. What determines them is consistent:
- The price of new pallets. New pallets set the upper bound. When lumber prices rise, used pallets rise with them. See pallet price drivers.
- Grade. Higher grades with fewer repairs and cleaner appearance command a premium.
- Core supply. Scarce cores raise the price of repaired pallets.
- Repair labor and equipment. Repair cost per pallet depends on damage and automation; see pallet repair.
- Distance. Because pallets are bulky, delivery radius is short and used pallets are mostly local goods.
- Volume and regularity. Contract buyers with predictable volumes get better terms than occasional buyers.
International used-pallet trade
Cross-border trade in used pallets exists, but it is limited by freight cost, since empty pallets are bulky, and by phytosanitary rules. Used solid-wood pallets that cross borders must meet the requirements of ISPM 15, the international standard for wood packaging, including an official mark; see ISPM 15 explained. Repaired or remanufactured pallets raise additional marking questions, covered in reused and repaired wood packaging. Some importing countries have extra conditions for used wood packaging, so an exporter should check the destination's rules, summarized in ISPM 15 country rules.
Quality risks
Buyers of used pallets should watch for:
- Counterfeit or unlicensed marks on supposed EPAL pallets; see fake Euro pallets.
- Contamination: chemical spills, mold, pests or odors that could damage food or pharmaceutical goods.
- Hidden structural damage: cracked stringers or blocks, weak repairs, protruding nails.
- Mixed grades delivered under one price.
- Missing or invalid ISPM 15 marks for pallets destined for export.
- Moisture and mold in stored stock; see mold and blue stain.
A practical purchase agreement specifies size, grade criteria, treatment, delivery tolerance for off-grade units, and a right to reject.
Buying and selling in practice
Used-pallet buyers usually fall into three groups. Retailers and consumer-goods companies buy graded used pallets in bulk for their own distribution. Manufacturers use lower grades for outbound one-way shipping, where the pallet will not return. Pallet producers and recyclers buy and sell among themselves, trading cores, dismantled components and excess stock.
For sellers, consistent sorting is the main source of margin: a yard that reliably separates grades can serve demanding customers and sell the remainder as lower grades or components. Recovered boards and blocks from dismantling feed repair lines and new pallets, as explained in pallet dismantling machines.
Frequently asked questions
What is a pallet core?
A core is a used pallet that is sound enough to be reused or repaired. Recyclers buy or collect cores and turn them into graded used pallets.
Is there an international standard for used pallet grades?
No. Grades come from industry practice, associations and individual recyclers. EPAL provides a formal classification for Euro pallets.
Can used pallets be exported?
Yes, if they comply with ISPM 15 and any extra rules of the destination country, including the official mark. Freight cost makes long-distance trade less common.
Are used pallets safe for food?
They can be, if graded, clean and free of contamination, but many food and pharmaceutical shippers specify new or top-grade pallets or closed-loop pallets.
Sources
- Investigation of new and recovered wood shipping platforms in the US — BioResources / Virginia Tech
- Pallet Grading Guide: 48x40 GMA pallet standards — Millwood Inc.
- EPAL Quality and Exchange guideline (PDF) — European Pallet Association
- Study shows 95% of wooden pallets are recycled — The Pallet Foundation
- ISPM 15 publication page — IPPC