Pool pallets are owned by a third party and rented to shippers on a per-use basis.
Detailed Definition
A pool pallet belongs to a pooling company, such as CHEP, PECO or iGPS, rather than to the shipper. The shipper rents pallets, ships product on them, and the pooler recovers them from receivers, then inspects and repairs them before reissue. Charges usually combine issue or hire fees, transfer fees and fees for pallets that are lost or not reported. Pooling avoids buying a pallet fleet, but whether it costs more or less than buying pallets depends on the shipper's lanes and controls.
How a pool pallet moves through the supply chain
The pooler delivers pallets to a manufacturer, which loads product and ships to a retailer or distributor. The shipper records each shipment as a transfer so that the pallets move off its account. The pooler then collects empty pallets from the receiving sites, inspects and repairs them at a service center, and sends them out again. Because the pallets keep circulating, each one is built to a heavier standard than a typical one-way pallet.
Telling pool pallets apart from user-owned pallets
Pool pallets are identified by color and markings. CHEP pallets are blue, PECO pallets are red and iGPS pallets are plastic. They are marked as the property of the pool. A plain, unpainted wood pallet that a company buys and owns is often called a white-wood pallet.
Pool pallets should not be sold, cut up, or mixed into recycled white-wood stock. Pallet recyclers and receivers are normally expected to return them to the pool rather than keep them.
What a shipper on a pool program should track
- Accurate transfer reporting for every outbound load, so the account is not charged for pallets that left the building.
- Pallets that reach customers who are not part of the pool's recovery network.
- Inventory counts at the dock, compared with the pooler's statements.
- Damage on arrival, which should be noted and reported to the pooler rather than repaired in house.
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 keep or resell a CHEP or PECO pallet that arrives with a delivery?
Generally no. Pool pallets remain the property of the pooling company even when they sit on your dock. Receivers are expected to return them through the pooler's collection process, and the companies treat unauthorized resale or use as misuse of their property. If you receive pool pallets you do not want, contact the pooler named on the pallet to arrange a pickup.
Who pays for a pool pallet that never comes back?
That depends on the contract. The shipper's account is usually charged until a pallet is transferred to a participating receiver, and pallets that cannot be traced may be billed as lost. Review the pooler's agreement for how transfers are reported, which receivers are in the network, and how lost or damaged pallets are charged before signing up.