PECO pallets are red-painted block pallets in a US pool program.
Detailed Definition
PECO Pallet operates a US pallet rental pool. Its pallets are wood block pallets painted red, mainly in the 48x40 size, which allow four-way entry by forklifts and pallet jacks. Manufacturers rent them to ship goods to retailers, grocery distribution centers and 3PLs, and PECO recovers the empties from those receivers, inspects and repairs them, and puts them back into service. The pallets remain PECO's property throughout, so users pay for their use rather than buying them.
How the PECO rental model works
A manufacturer orders pallets from the pool, loads them and ships to its customers. Shipments of pooled pallets are reported so the pool knows where its pallets are. Participating receivers hold the empties until they are collected, after which the pallets go through inspection and repair before being issued again. Fees depend on the user's agreement and usually reflect how pallets are issued, how long they are held and how they are returned.
Block construction and handling
Because PECO pallets are block pallets, forklifts and pallet jacks can enter from all four sides, which helps in busy distribution centers and on automated lines. Block pallets are generally heavier than notched stringer pallets of the same footprint. Users should still check that the pallet orientation suits their racking and conveyors.
Comparing PECO with other pools
The main US alternatives are CHEP, which rents blue wood block pallets, and iGPS, which rents plastic pallets. The choice often depends on which pools your customers accept, fee structures and service coverage. Compare against owned pallets using a pool vs buy analysis.
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
Why are PECO pallets painted red?
The color identifies the pool owner at a glance. In a distribution center or recycling yard, pallets from different owners end up mixed together, and paint color lets workers quickly separate pooled pallets from white-wood pallets and from other pools. That makes it easier to return each pallet to its owner and reduces losses. Pallets also carry the owner's markings, which should be checked along with the color.
Can a business that receives PECO pallets keep them?
No. PECO pallets remain PECO's property when they arrive at a customer's dock. Receivers are expected to hold the empties for collection through PECO's recovery process rather than reuse them for their own shipments, sell them or scrap them. A receiver that regularly gets PECO pallets and has questions about pickup should contact PECO directly to set up returns.