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How to Navigate the Recycled Pallet Buying Process

If you buy pallets, your two main options are new or recycled. Each choice comes with its pros and cons. New pallets are of uniform quality and clean appearance, and they can be customized to meet your particular needs. On the other hand, recycled pallets can be more budget friendly if you use a standard size – like 48×40-inch. Recycled pallets also support sustainability by reducing the demand for new lumber and promoting the circular economy. However, understanding the variability in their condition and appearance is crucial for making the right choice.

Here are some pointers toward optimising your recycled pallet procurement efforts:

1. Weigh the Pros and Cons of Recycled vs. New Pallets

Buying recycled or new pallets depends mainly on your specific needs. New pallets are ideal for operations requiring consistent quality, compatibility with automated systems, or precise customization for freight configurations or heavy loads. They are also a go-to choice for industries like pharmaceuticals or food and beverage, where a clean, uniform appearance is strategically important.

On the other hand, recycled pallets are budget-friendly and widely available, making them a popular choice for less critical applications. And because they are reused, their environmental footprint is lighter. However, they are mainly only available in 48×40”, and their condition can vary, as we outline immediately below. Understanding these pros and cons upfront will help you decide which option best suits your operational and budgetary requirements.

2. Clarify Grading Standards

Take the time to understand the recycled pallet grades. At Advance Lumber, our grades are #1 Heat Treated (HT), #1 not Heat Treated (HT) and #2. Aside from #1 and #2, some suppliers use terminology such as “A-grade” or “B-grade” (or “#1” and “#2”). #1 or A-grade pallets generally being in better condition and suitable for demanding applications. B-grade pallets may show more wear and repairs but are adequate for many applications. However, these definitions vary among pallet suppliers, so don’t rely on assumptions about what is included in a particular grade.

3. Request Detailed Specifications

Further to the last point, request detailed specifications from your supplier. These should include information such as the number of deck boards or permitted spacing, allowable repairs, and acceptable damage tolerances. This extra step can save you time and money by ensuring you purchase pallets that work seamlessly in your supply chain.

4. Evaluate the Supplier’s Quality Control Program

Not all 48×40-inch recycled pallets are equal. Deck board thickness and width may vary, as well as the size of gaps between boards. Recycled pallets vary in quality, and suppliers with robust quality control processes are better equipped to ensure consistent quality within each grade. Pallet repair is typically a manual task requiring judgment calls by repair workers, which means variability can creep into the process without controls. A supplier with a rigorous quality assurance program can help ensure the pallets you receive meet your operational and safety standards.

5. Ensure Certified Compliance for Export Pallets

If your operations involve international shipping, make sure any recycled pallets you purchase for export are ISPM 15 compliant. Source HT pallets from a certified supplier to avoid issues like counterfeit stamps or non-compliant repairs made by non-certified pallet recyclers. Failure to meet ISPM 15 standards can result in customs delays or fines, disrupting your supply chain. Certified suppliers are regularly inspected and adhere to the required heat treatment processes, giving you peace of mind for international shipments.

6. Understand the Economics of Recycled Pallets

Keep in mind that lower lumber prices do not necessarily translate into lower recycled pallet costs. While new pallet prices are heavily influenced by lumber prices, recycled pallet prices are driven by other factors, such as the cost of acquiring used pallet cores and labor expenses at recycling facilities.

7. Build a Partnership with a Trusted Supplier

Working with a reliable supplier such as Advance Lumber is one of the most effective ways to navigate the complexities of buying recycled pallets. We provide clear recycled pallet specifications and leverage robust quality control processes to make sure you get the pallet you are paying for. Whether you need guidance on ISPM-15 or a deeper understanding of how recycled pallet pricing works, we are here to help.

If you are looking to optimize your recycled pallet procurement, let’s chat.