CHEP pallets are blue-painted block pallets owned by CHEP, part of the Brambles group, and rented to shippers through its pallet pool.
Detailed Definition
CHEP runs one of the largest pallet pools in the world. Customers rent rather than buy: CHEP issues pooled pallets to a shipper, the shipper moves goods on them to a receiver, and CHEP collects, or de-hires, the empties for inspection, repair and reuse. Pricing commonly combines issue, daily hire and transfer charges rather than a purchase price, with terms set by contract. The standard US CHEP unit is a blue-painted 48 x 40 inch block pallet with four-way entry, common in beverage, consumer goods and grocery distribution where retailers accept or require a pooled platform.
CHEP Pallet Specifications
| Attribute | CHEP 48x40 |
|---|---|
| Footprint | 48 x 40 inches (GMA footprint) |
| Construction | Block pallet, four-way fork and pallet-jack entry |
| Color | Blue (CHEP-owned, branded) |
| Ownership | Rented/pooled - CHEP retains title, you cannot sell or scrap them |
CHEP Pool vs Buying Whitewood GMA Pallets
The practical decision most operators face is whether to stay in a CHEP pool or buy their own whitewood (recycled or new GMA) pallets. The main trade-offs:
| Factor | CHEP pool | Buy whitewood GMA |
|---|---|---|
| Cost model | Per-issue + daily rental + transfer fees; ongoing | One-time purchase; price varies with lumber markets, grade and volume |
| Ownership | CHEP owns them; audits and de-hire penalties for lost pallets | You own them; resell or buy-back at end of life |
| Availability | Depends on pool balance in your region; can tighten seasonally | Buy on demand from a supplier; no pool dependency |
| Best for | Shippers into retailers that mandate a pooled platform (e.g. certain grocery DCs) | Closed-loop, one-way, or export shipments where you control the pallet |
How a CHEP rental cycle works
A manufacturer orders pallets from the pool and loads product on them. When it ships to a customer, it records a transfer so responsibility for those pallets moves to the receiver's account, if the receiver participates in the pool. The receiver unloads the product and makes the empties available for collection, and the pool operator returns them to a service center for inspection and repair before reissue. Accurate transfer records are essential, because the account holder of record is usually responsible for pallets until they move to another account or return to the pool.
Costs and responsibilities to clarify
- Which fees apply: issue, daily hire, transfer, collection and lost equipment charges
- How and when transfers must be reported, and what happens to unreported ones
- Who pays for pallets lost or damaged at your site or your customers' sites
- Whether your customers accept pooled pallets, and which pools
Comparing these terms with buying white-wood pallets is the core of a pool versus buy decision.
Receiving CHEP pallets as a customer
A receiver that participates in the pool usually accepts transfers of pallets from its suppliers and then returns empties for collection. If transfers are recorded to your account, reconcile them against the pallets you actually received, and dispute errors promptly through the pool operator's process.
Authoritative Sources
- Consumer Brands Association (formerly GMA) (CBA): the trade association whose 48x40 inch pallet standard (the "GMA pallet") became the dominant US pallet specification.
Related Glossary Terms
Frequently Asked Questions
Can I buy CHEP pallets or only rent them?
You cannot buy CHEP pallets. CHEP retains ownership and issues them through its rental pool, so selling, scrapping, or keeping them can trigger de-hire or compensation charges. If you need pallets you own outright, buy whitewood GMA (new or recycled 48x40) instead.
What is the difference between a CHEP pallet and a GMA pallet?
Both use the 48x40 inch footprint, but CHEP is a specific blue, CHEP-owned block pallet rented through a pool, while "GMA pallet" refers to the open 48x40 whitewood standard you can buy and own. CHEP is a branded, pooled subset of the broader GMA-footprint category.
Who pays when a CHEP pallet is lost?
That depends on the rental agreement, but in general the account holding the pallet on the pool's records is responsible until the pallet is transferred to another participant or returned. If pallets disappear at a site that never recorded a transfer, the shipper can end up paying for them. Review loss charges in the contract, reconcile transfers regularly, and make sure customers know how to return empties.
When does renting CHEP pallets make more sense than buying?
Pooling tends to fit when customers expect or require pooled pallets, when shipments are one-way to many receivers, and when the shipper does not want to manage pallet returns, repairs and quality sorting. Buying white-wood pallets can fit closed networks, export loads that leave the pool's region, or customers that keep pallets. Compare total cost per trip, including fees, losses, admin time and damage, rather than the rental rate alone.
