Product damage during shipping and warehousing costs US businesses an estimated $1.7 billion annually, and a significant portion of that damage is directly attributable to pallet failure. Broken boards, protruding nails, uneven surfaces, and structural collapse all contribute to the problem.
The most common pallet-related damage types include puncture damage from protruding nails or splinters, crushing damage from pallet collapse under load, moisture damage from wet or contaminated pallets, and contamination from chemically treated or unsanitary pallets.
The solution starts with using the right grade of pallet for each application. Grade A pallets with smooth surfaces and no defects are essential for fragile or high-value goods. Grade B pallets work well for standard warehouse operations. Grade C pallets should be reserved for non-sensitive, one-way shipments.
Proper pallet-product fit matters enormously. Product should not overhang the pallet edge (overhang increases crush risk by up to 32%) and should not be significantly smaller than the pallet (poor load distribution creates instability).
Stretch wrapping technique also plays a role. The bottom wraps should lock the load to the pallet, and the wrap should extend below the top deck surface to grip the pallet stringers. Poor wrapping is one of the leading causes of load shifting and product damage.
At Riverside Pallet Co., we see the damage problem from both sides — we receive pallets that have caused damage, and we supply pallets that prevent it. Our inspection and grading process specifically checks for the defects most likely to cause product damage: protruding fasteners, broken lead boards, cracked stringers, and surface contamination.
Investing in better pallets is one of the highest-ROI decisions a logistics operation can make. The cost difference between a Grade C and Grade A pallet is typically $3-5. A single product damage claim often exceeds $500. The math speaks for itself.