Definition
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.
Related Terms
Pallet Pooling
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.
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.
Block Pallet
A pallet constructed using blocks of solid wood or composite material between the top and bottom deck boards, typically with nine blocks arranged in a 3x3 pattern. Block pallets offer true four-way entry, allowing forklifts and pallet jacks to access the pallet from all four sides. They are generally stronger and more durable than stringer pallets, making them common in pooling programs and heavy-duty applications.
Four-Way Entry
A pallet design that allows forklift forks or pallet jack forks to enter from all four sides. True four-way entry is achieved through block pallet construction, where blocks replace continuous stringers, creating openings on all four sides. Some stringer pallets offer partial four-way entry through notched stringers, which allow fork entry on the stringer sides. Four-way entry pallets are preferred for tight warehouse spaces and automated handling systems.
Explore More Pallet Industry Terms
Our glossary contains 165+ terms covering everything from pallet construction to compliance regulations and industry organizations.