A pallet yard is a facility focused on pallet recycling, sortation, and refurbishment.
Detailed Definition
A pallet yard is a site where used pallets are received, sorted, repaired and resold, usually with large outdoor areas for stacks of cores and finished recycled pallets. Typical work includes unloading inbound trailers, sorting by size and condition, repair lines, dismantling pallets for reusable boards, grinding unrepairable wood into mulch or fuel, and loading outbound orders. Some yards also operate heat-treatment chambers so they can supply ISPM-15 marked pallets, and many also build new pallets.
How a pallet yard differs from a pallet mill
A pallet mill builds new pallets from lumber, while a pallet yard works mainly with used pallets. In practice the line is blurred: many businesses run both, building new pallets for some customers and supplying recycled ones to others. The difference matters to buyers because recycled stock varies with what comes in, while new pallets are built to a fixed specification.
What happens to pallets at a yard
- Standard sizes in good condition go straight to resale stock.
- Damaged pallets go to repair, where boards are replaced and stringers plated.
- Pallets not worth repairing are dismantled for parts.
- Pool pallets from rental programs are separated and returned to their owners.
- Remaining wood is ground, with nails removed by magnets.
Questions to ask a pallet yard supplier
Ask how each grade is defined and whether you can see samples, how consistent supply is for your size, whether the yard is registered under an ISPM-15 program if you export, and whether it collects your empty or scrap pallets. Outdoor storage also matters: pallets kept outside can be wet or dirty, which may be a problem for food or indoor use.
Authoritative Sources
- National Wooden Pallet & Container Association (NWPCA): the US trade association representing wood pallet manufacturers, recyclers, and component producers, founded in 1947.
Related Glossary Terms
Frequently Asked Questions
Do pallet yards buy used pallets?
Many do, especially standard sizes such as 48x40 that are in steady demand. What a yard will pay, if anything, depends on size, condition, volume and the local market. Odd sizes, badly damaged pallets and small quantities may be accepted only for a fee or not at all. Some yards collect from businesses on a schedule, while others require pallets to be dropped off.
What should a pallet yard do with CHEP or PECO pallets it receives?
Rental pool pallets remain the property of the pool operator even when they arrive mixed in with other used pallets. Yards should separate them and return them through the operator's recovery arrangements rather than repairing, reselling or grinding them. Mixing pool pallets into recycled stock can create disputes with the pool owner and problems for customers who receive them.