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What Is Pallet Leakage?

Pallet leakage is the loss rate of pallets in pool programs (CHEP, PECO, iGPS) where pallets fail to return to the pool, billed back to shippers as leakage charges.

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Quick Answer: Pallet leakage is the loss rate of pallets in pool programs (CHEP, PECO, iGPS) where pallets fail to return to the pool, billed back to shippers as leakage charges.

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Detailed Answer

Pool programs charge per-trip fees plus leakage charges when pallets are lost or damaged beyond repair. Industry-typical leakage: 2-5% per cycle. Pool programs apply $25-100+ leakage charges per pallet. Owned-pallet purchase models eliminate leakage charges.

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