Definition
A logistics model in which pallets are rented from a pooling provider rather than purchased. The pooling company manages the entire pallet lifecycle — manufacturing, distributing, collecting, inspecting, repairing, and reissuing pallets across a shared network. Pallet pooling can reduce capital costs, eliminate pallet management complexity, and improve sustainability through professional maintenance and high reuse rates. Major pooling companies include CHEP, PECO, and iGPS.
Related Terms
CHEP
Commonwealth Handling Equipment Pool, the world's largest pallet pooling company, recognizable by its distinctive blue pallets. CHEP operates a pallet rental and logistics management service where customers rent pallets rather than purchasing them. CHEP pallets are block pallets built to high quality standards, and the company manages collection, inspection, repair, and redistribution. CHEP serves primarily the grocery, retail, and consumer goods supply chains.
PECO
PECO Pallet is North America's leading independent pallet pooling company, identified by its distinctive red pallets. Like CHEP, PECO operates a rental model where customers use standardized pallets on a per-trip basis. PECO pallets are high-quality block pallets with four-way entry, designed for the grocery and consumer products supply chain. PECO competes primarily with CHEP in the North American market.
One-Way Pallet
A pallet intended for a single trip from shipper to receiver, not designed for return or reuse in a closed-loop system. One-way pallets are typically manufactured to lower specifications and cost less than multi-use pallets, since they only need to survive one shipping cycle. They are common in export shipping, e-commerce fulfillment, and any supply chain where recovering the pallet after delivery is impractical or uneconomical.
Remanufactured
A pallet that has been repaired by replacing damaged components (deck boards, stringers, or blocks) with serviceable parts salvaged from other pallets or with new lumber. Remanufactured pallets — sometimes called combo pallets — offer significant cost savings compared to new pallets while maintaining acceptable quality for most applications. The remanufacturing process involves sorting, disassembling damaged pallets, inspecting components, and reassembling pallets to specification.
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