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What Is Pallet Leakage Rate?

Pallet leakage rate is the annual percentage of pallets lost in pool programs (CHEP, PECO, iGPS) that fail to return to the operator, typically billed back to shippers.

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Quick Answer: Pallet leakage rate is the annual percentage of pallets lost in pool programs (CHEP, PECO, iGPS) that fail to return to the operator, typically billed back to shippers.

Industrial flatbed truck delivering pallet load

Detailed Answer

Industry-typical leakage rates: CHEP 2-3% per cycle; PECO 2-4%; iGPS 1-3% (RFID enables better recovery). Leakage charges typically $25-100 per lost pallet. For a high-volume shipper with 100K annual cycles, leakage cost = 100K × 2.5% × $50 = $125K/year. Owned-pallet purchase models eliminate this entirely.

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