When it comes to sourcing pallets, businesses essentially have two models: pooling (renting pallets from a pool managed by a third party) or purchasing (buying pallets outright). Each has distinct advantages depending on your operation.
Pallet pooling works like a rental service. Companies like CHEP and PECO manage large pools of standardized pallets. You pay a per-use fee, and the pooling company handles collection, repair, and redistribution. You never own the pallets.
The advantages of pooling include zero upfront capital investment, no storage of empty pallets, consistent quality, and no responsibility for repair or disposal. For companies with complex multi-destination supply chains, pooling simplifies logistics significantly.
However, pooling has drawbacks. Per-use fees add up quickly — especially if your cycle times are long. Demurrage charges for late returns can be substantial. You have no control over pallet quality or availability. And you're locked into the pooler's standardized sizes.
Purchasing pallets gives you full ownership and control. You choose the size, grade, and type. There are no per-use fees or demurrage charges. You can resell or recycle pallets when you're done with them. And for high-volume operations, the total cost is often lower.
The disadvantages of purchasing include upfront capital investment, the need to manage your own inventory, and responsibility for repair and disposal. However, buyback programs (like ours) mitigate many of these concerns.
Our recommendation: if you ship to many different destinations and can't easily collect pallets, pooling may be more practical. If you have a relatively predictable supply chain with opportunities to collect and reuse pallets, purchasing recycled pallets is usually the more economical choice.
Many businesses use a hybrid approach — pooling for one-way shipments to diverse destinations, and purchased pallets for regular routes where collection is feasible.