How to sell used pallets: what recyclers buy and how to get paid

Pallet recyclers buy used 48x40 stringer pallets, called cores, that they can repair and resell. If you generate enough of them to fill a trailer, a recycler may drop a trailer at your site, haul it away full and pay you for the good ones. Broken pallets, odd sizes and pooled pallets are a different story, and pooled pallets are not yours to sell at all.

What sells: 48x40 stringer cores

"Core" is the industry term for a used 48x40 wood pallet, the most common shipping platform in North America. Recyclers buy cores, repair them and sell them back to manufacturers and distributors as recycled pallets. Many of their customers are also their suppliers: trade press notes that companies buying recycled pallets are often the source of the empty cores.

The cores that sell best are:

• 48x40 stringer pallets in repairable condition. Some damage is normal. Notched stringers are among the most commonly damaged parts of a wood pallet, and the industry has standard repairs for them (metal plates, half companion stringers and full companion stringers), according to research from Virginia Tech and the USDA Forest Service.
• Clean and dry. Recyclers sort by size and condition and watch for split boards, bark, rot and mold. Pallets that are stained, moldy or have carried chemicals are hard to place.
• Stacked by size. A neat stack of one size is quicker to count, load and grade than a mixed pile.

Non-pooled 48x40 block pallets can also have a recycled market. If any of your pallets carry an ISPM 15 heat-treatment stamp, say so when you ask for offers. APHIS notes that the treatment does not expire on a pallet that has not been repaired or remanufactured.

What doesn't sell

• Pallets beyond repair. Boards that are shattered, stringers broken in several places and missing blocks usually mean the pallet will be dismantled for parts or ground. Expect little or nothing for these, and possibly a haul-away fee.
• Odd sizes. Non-standard pallets have fewer end users. Some recyclers will take them with a load of cores, some will not. Ask before you count on it.
• Pooled pallets you don't own. CHEP pallets are blue and PECO pallets are red, and both companies say they own every one of them. PECO states that it is illegal to sell, buy, exchange or repurpose its pallets. Request a pickup instead: CHEP has an online collection request, and PECO takes requests by phone, email or web form.
• Pallets marked with another company's name. Some states protect marked pallets. California makes possession of a merchandise pallet marked with an owner's name by an unauthorized person punishable, and it bars recyclers from buying marked pallets from anyone but the owner unless the seller provides a receipt from the owner or written authorization to sell.

For the pallets that won't sell, see pallet disposal and recycling.

How buyers price cores

You will not find a public price list for used pallets. Offers depend on the load and the market. Expect a buyer to weigh:

• Grade mix. How many of your pallets will come out of repair as top-grade recycled pallets versus lower grades. Recyclers grade used pallets (often as number 1 or A, and number 2 or B), and better grades sell for more. See pallet grades explained.
• Repair cost. Each broken board or cracked stringer costs labor and lumber.
• Size mix. A full load of 48x40 stringers is worth more to a recycler than a mixed load.
• Volume and consistency. A full trailer every week is a steadier supply than a one-time cleanout.
• Distance. Freight from your dock to the recycler's yard comes out of the offer.
• The market. Core supply rises and falls. When new pallet production slows, fewer pallets enter the used stream and cores get scarcer.

Get at least two offers. Ask each buyer how they grade, whether they pay per pallet by grade, how they handle rejects, and whether haul-away is free or charged. Trade press notes that free versus paid haul-away is a normal point of negotiation.

Minimum quantities: think in trailer loads

Selling works best by the full trailer: one trip, one stop, one count. For scale, Chesapeake Pallets (our sister company) counts a full 53-foot truck as 616 stringer pallets or 520 block pallets.

If you generate fewer than that, you can:

• store pallets until you have a full load (dry, off the ground, stacked by size)
• ask about smaller pickups, which usually carry a higher freight cost per pallet
• team up with a neighboring business to fill one trailer

Getting a trailer dropped

With a drop trailer, the buyer leaves an empty trailer at your dock or in your yard. You load it as pallets come in, call when it is full, and the buyer swaps it for an empty. The alternative is a live load, where a truck arrives and waits while you load, which only works if your pallets are already staged.

Before you accept a drop, confirm you have:

• yard space or a dock door you can spare
• a forklift or pallet jack and someone to load
• a place to stage rejects so they don't go on the trailer

Then agree on these terms in writing:

• pickup frequency and how much notice the buyer needs
• price by grade, and how rejects and odd sizes are handled
• who is responsible for the trailer and its contents while it sits on your property
• any charges if the trailer sits longer than agreed

Documentation

Keep the paper trail simple and complete:

• Bill of lading. Federal rules require for-hire motor carriers to issue a receipt or bill of lading showing the shipper and receiver, origin and destination, number of packages, a description of the freight and, where it applies, weight. Write your pallet count on it and keep a signed copy.
• Tally or grade sheet. Ask the buyer for a written count of each load by grade, and match it to the bill of lading and the payment.
• Form W-9. Expect the buyer to ask for one before paying you. The IRS form gives your taxpayer ID to a business that has to file information returns.
• Payment terms. Agree on when and how you get paid for each load.
• Proof of ownership, if your pallets carry another company's marks and your state regulates marked pallets.

Ready to get offers? Tell us what you have on the sell your pallets page.

FAQ

Who buys used pallets?

Pallet recyclers and repair companies. They buy used 48x40 cores, repair them and resell them as recycled pallets.

Can I sell CHEP or PECO pallets?

No. Both companies own their pallets and do not sell them. Request a pickup through CHEP's or PECO's recovery service instead.

How many pallets do I need to sell them?

Selling works best by the full trailer load. If you have fewer, store them until you have a load, ask about a smaller pickup, or share a trailer with a neighboring business.

Do recyclers pay for broken pallets?

Usually very little or nothing, and some charge a haul-away fee for pallets that can't be repaired. Whether haul-away is free is worth negotiating, especially if you also supply good cores.

What paperwork do I need to sell pallets?

A signed bill of lading with the pallet count, a tally sheet from the buyer showing how the load graded, and a Form W-9, which the buyer may ask for before paying you.