Plywood, oriented strand board (OSB) and laminated veneer lumber (LVL) are engineered wood products made by gluing veneers, strands or thin layers under heat and pressure. In packaging they are used for crate walls, pallet decks, boxes and heavy-duty bases, and when made wholly of processed wood they fall outside the scope of the international wood packaging standard ISPM 15.
What engineered wood is
Engineered wood breaks a log down into smaller elements and rebuilds them with adhesive into panels or beams with more uniform properties than sawn lumber. The main products used in packaging are:
| Product | Construction | Typical packaging use |
|---|---|---|
| Plywood | Thin veneers glued with grain direction alternating at right angles between layers (an odd number of plies) | Crate sides and lids, box panels, pallet decks, bases for heavy machinery |
| OSB | Rectangular wood strands, oriented in layers, bonded with resin and pressed | Large crate panels, panel-deck pallets, lids and floors |
| LVL | Veneers glued with the grain running mainly in one direction | Skids, runners, heavy crate frames, long beams |
| Particleboard and fiberboard | Wood particles or fibers pressed with resin | Pressed pallet blocks and some light packaging, see presswood and moulded pallets |
Because the grain of each layer is arranged deliberately, panels resist splitting and have more even strength across their surface than a solid-wood board, which tends to split along the grain.
Key properties for packaging
Dimensional stability. Cross-layering restrains swelling and shrinking, so panels remain flat. Solid boards cup, twist and shrink as moisture changes. Panels do still swell at edges if soaked, and OSB is more vulnerable to edge swelling than plywood, so exposure grades and edge sealing matter.
Panel size and uniformity. Sheets commonly come in large sizes such as 1220 × 2440 mm (4 × 8 ft). Large panels reduce cutting and assembly steps compared with building a crate from many boards.
Strength and stiffness. Strength depends on species, glue type, panel thickness and layup. LVL is made to be stiff along its length and is used where long, uniform beams are needed. Plywood has good shear and puncture resistance, while OSB is cost-effective for stiffness in thicker panels.
Weight. Panel crates are usually lighter than boarded crates of equivalent strength because the structure requires less framing. The APA, the US engineered wood trade association, states that a 1,000-cubic-foot panel crate weighs 700 lb less than an equivalent lumber crate and that panel construction can reduce fabrication labor by 50 to 75%. These are manufacturer-association claims for a specific design comparison; real savings vary.
Surface. Smooth panel faces take printing, labels and stencils more easily than rough sawn boards. Plywood and OSB can be overlaid for abrasion resistance or moisture protection.

Standards and grades
Panels are classified under national and international standards that define grades, glue durability and tolerances. Common European references include:
- EN 636 for plywood, which sets classes for use in dry, humid and exterior conditions.
- EN 300 for OSB, which defines grades OSB/1 to OSB/4 by load-bearing capacity and humidity resistance.
- EN 14374 for structural LVL.
In North America, performance panels are rated under the US PS 1 and PS 2 product standards and the APA rating system. Always specify the exposure rating that matches the shipment's conditions. A crate going by sea or to be stored outdoors needs a bonded, moisture-resistant panel, not an interior grade.
Formaldehyde emissions classes and adhesive type also matter for food, pharmaceutical and sensitive electronics shipments.
The ISPM 15 exemption
ISPM 15 regulates wood packaging made from raw wood, which can harbor pests. Its scope excludes wood packaging made wholly of processed wood material, such as plywood, particleboard, OSB or veneer, created using glue, heat and pressure or a combination. These materials have been processed enough to be free from pests, so they need no heat treatment, fumigation or ISPM 15 mark. Very thin raw wood (6 mm or less) is exempt as well. The exemptions are explained in ISPM 15 exemptions.
Two caveats matter:
- Mixed construction. A crate with a plywood skin but a solid-wood frame or skids is not exempt. The solid parts must be treated and marked. This is the most common compliance error in export crates.
- Importing country rules. A few countries add their own requirements or ask for declarations, so check the destination's rules, see ISPM 15 country rules.
For exporters this is a practical advantage: lead times are shorter and there is no treatment cost or risk of rejection for missing marks.
Cost versus solid wood
A fair cost comparison cannot rely on price per cubic meter alone. Panels cost more per unit volume than low-grade sawn lumber, but total packaging cost also depends on:
- material yield: panels cut with predictable waste; boards lose volume to defects and trimming
- labor: fewer pieces to cut, nail and handle
- weight: lighter crates reduce freight charges, especially by air
- treatment: no heat treatment or marking cost for exempt panels
- rework and damage: more uniform strength lowers rejection and breakage
For very large production runs of simple pallets, solid wood is usually cheaper. For crates, boxes and low-volume or custom packaging, panels often win when labor and compliance are counted. Methods for building up pallet cost are in how to calculate pallet cost.
Typical applications
- Crates and cases: plywood or OSB walls on a solid or LVL base, for machinery, instruments and spare parts. See wooden boxes and cases and wooden packaging for machinery.
- Panel-deck pallets: a plywood or OSB deck on blocks or stringers, which provides a smooth surface for sacks, bagged goods and printed packaging.
- Skids and runners: LVL beams for heavy loads, since LVL is available in long, uniform sections.
- Dunnage and bracing: panels used to block and brace loads inside containers.
- Seaworthy packaging: moisture-resistant plywood in fully enclosed boxes; see seaworthy packaging.
Limitations include higher cost per volume, formaldehyde-based adhesives in some grades, difficulty of repair compared with a nailed solid-wood pallet, and reduced recyclability because glued panels are not as easy to reuse as sawn boards.

Frequently asked questions
Do plywood pallets need an ISPM 15 stamp?
Not if the pallet is made wholly of processed wood material such as plywood or OSB. If it has solid-wood blocks, stringers or skids, those parts must be treated and marked.
Is OSB or plywood better for crates?
Plywood generally has better surface quality and moisture resistance. OSB is usually cheaper for large, flat panels in dry conditions. The best choice depends on exposure and load.
What is LVL used for in packaging?
LVL is used for long, stiff, uniform components such as skids, bearers and frame members of heavy crates.
Are engineered wood panels recyclable?
Wood panels can be burned for energy or chipped for panel production in some regions, but glued products are less easy to reuse than solid timber.
Sources
- Materials Handling — APA – The Engineered Wood Association
- Regulation of wood packaging material in international trade (ISPM 15) — International Plant Protection Convention
- ISPM 15 — Wikipedia
- Plywood and OSB Deliver Materials Handling Solutions — Pallet Enterprise
- ISPM 15 exempt shipping crates — Pallite Group
