Pallet grades explained: Grade A vs Grade B vs AAA vs new

Grade A (often sold as #1) is a recycled 48x40 pallet that looks close to new, with solid or metal-plated stringers and no companion stringer repairs. Grade B (#2) is a recycled pallet with visible repairs, such as one or two companion stringers or plugs. AAA is a premium used tier in near-new condition, and new pallets are built from fresh lumber. No one enforces these names, so a grade means only what your purchase order says it means.

The four grades at a glance

Grade	Also called	What you see	Typical uses	Delivered price, full truckload
AAA	Premium, Club, Triple-A	Near-new, clean, uniform boards	Retail and grocery distribution, customer-facing loads	$8.50–$10.50
Grade A	#1	Original or plated stringers, no companion repairs	General warehousing, automated and conveyor lines	$6.75–$8.75
Grade B	#2	One or two stringers repaired with companions or plugs	Internal moves, industrial loads, one-way shipping	$4.75–$6.75
New	New GMA-style	Fresh lumber, built to your spec	Specs that call for new, custom sizes and builds	Quoted per order

Prices are per pallet, delivered, for 48x40 pallets bought by the full truckload, as published October 15, 2026. New pallets are quoted per order because their price follows the lumber market. The price page has the current table, and the monthly outlook covers where prices are heading.

Why grade names are slippery

There is no consistent, industry-wide definition of recycled pallet grades. Pallet Enterprise, a pallet industry trade journal, made that point in 2026 and noted that the top tier is sold as "Triple-A," "Club" or "Premium" depending on the seller. The same piece quotes an industry participant who said the old letter grades (A, B, C) were renamed numbers (1, 2, 3) around the early 1980s without new definitions, so an A and a #1 are technically the same thing.

The closest thing to a written baseline is the Uniform Standard for Wood Pallets from Woodpack Global (formerly the National Wooden Pallet & Container Association). Its 2025 edition sorts repaired 48x40 notched three-stringer pallets into three classes:

• Class 1: metal plates allowed, no companion stringer repairs.
• Class 2: one or two stringers repaired with plugs, notched blocks or longer companion stringers.
• Class 3: anything that does not meet Class 1 or Class 2.

In practice, Grade A usually tracks Class 1 and Grade B tracks Class 2. Not always: Pallet Enterprise has reported vendors whose Grade A allows one or two companion stringers. The standard is advisory, so it only binds a supplier if your PO cites it.

What each grade looks like

AAA (premium)

A used pallet in near-new condition. Expect clean, uniform deck boards and little visible repair. Because "AAA," "Club" and "Premium" carry no shared definition, ask for photos of the actual sort before the first load.

Grade A (#1)

Looks much like a new pallet apart from wear and some discoloration. Stringers are original or repaired with metal connector plates. No companion stringers and no plugs. Some suppliers sell a stricter tier with no stringer repairs at all, so say which one you want.

Grade B (#2)

Structurally sound, with visible repairs and more wear than Grade A. Two repair types define it:

• Companion stringer: a second stringer, full or half length, nailed alongside a cracked one. Woodpack Global calls the full-length companion the strongest companion repair.
• Plug: a short unnotched block, typically 4 to 18 inches long, that repairs a split stringer foot or the section between notches.

New

Built from new lumber to a stated spec. New pallets give the most consistent strength and dimensions, a point Interlake Mecalux, a storage systems maker, makes for automated systems. Buy new when your customer's spec calls for it or you need a custom size or build.

Where each grade fits

Automated lines and conveyors. Automated storage and conveyor systems are sensitive to bad repairs and dimension drift. Interlake Mecalux points automated users to new pallets or Grade A. Check your equipment maker's pallet requirements first.

Racking. Grade A is a sensible default for racks because its stringers are original or plated and its fork openings are full size. A Grade B repair is not automatically weaker, though. A Virginia Tech and USDA Forest Service study of GMA-style pallets found that metal plates, half companions and full companions all restored bending strength when properly applied to one notch on one or two stringers. Plates and half companions restored only part of the original stiffness. The researchers concluded that companion repairs land in lower grades mainly because they shrink the fork openings, not because of a documented loss of strength. Whatever grade you buy, inspect rack loads for broken boards and cracked stringers.

Pallet jacks. Those smaller openings matter on a pallet jack dock. If your team runs jacks all day, Grade A or a block pallet is the safer pick.

Floor storage and internal moves. Interlake Mecalux lists static storage as a use for even its lowest recycled grade, so Grade B is usually plenty for floor stacks and moves inside your own building.

One-way shipping. If the pallet will not come back, it only needs to survive one trip. Grade B is the usual economical choice.

Retail and customer-facing loads. When the pallet lands on a store floor or a customer's dock, appearance counts. That is what AAA is for.

Export. Any wood grade can ship overseas if it is heat treated and marked under ISPM 15. Woodpack Global's standard says repaired and remanufactured pallets must be retreated and remarked, with old marks obliterated. Heat treatment adds $1.00–$1.50 per pallet. See heat-treated pallets and ISPM 15.

How to spec a grade on a PO

Write a definition, not just a label. Pallet Enterprise has warned buyers not to rely on the grade name alone. A workable PO covers:

1. Size and style: 48x40 (stringer length first), three notched stringers, partial four-way entry.
2. Grade with its repair limits: for example, "stringers solid or metal-plated only, no companions or plugs" for Grade A, or "no more than two stringers repaired with companions or plugs" for Grade B. You can add "per Woodpack Global Uniform Standard, Class 1" (or Class 2).
3. Deck coverage: seven top and five bottom deck boards, the coverage the standard associates with a 48x40.
4. End (lead) boards: nominal 6-inch or 4-inch. The standard treats two properly fastened 4-inch boards butted together as equal to one 6-inch board.
5. Board spacing: the standard caps gaps at 4 inches on repaired pallets unless your spec says otherwise.
6. Size and square: for repaired pallets, length and width within plus 1/4 inch and minus 1/2 inch (Class 1) or within 1/2 inch either way (Class 2 and 3); top deck diagonals within 1.5% or 1 inch of each other, whichever is greater.
7. Condition: no broken or missing boards, no protruding nails, clean and dry, and whether painted boards are allowed.
8. Treatment: heat treated with a legible IPPC mark if the load will be exported.
9. Special requirements: food-grade cleaning, deck thickness or anything else your customer audits.
10. Rejection terms: what happens to off-spec pallets at your dock.

Ask for photos of the supplier's sort before the first order, or send photos of what you mean. Chesapeake Pallets (our sister company) offers a test load: one full truck, no contract, billed at the quoted price. You can refuse off-spec pallets and pay nothing for them.

FAQ

Is a #1 pallet the same as a Grade A pallet?

Yes. According to an industry account reported by Pallet Enterprise, letter grades were renamed as numbers around the early 1980s, so A and #1 describe the same tier. Repair allowances still vary by supplier, so get them in writing.

Can Grade B pallets go in racking?

Often, yes. Research on GMA-style pallets found that properly applied companion and plate repairs restore bending strength. Inspect for broken boards and cracked stringers, and follow your own racking safety rules.

What does AAA mean on a pallet quote?

A premium used pallet in near-new condition with clean, uniform boards. The label has no standard definition, so ask for photos and a written spec.

Why are new pallets not on the price table?

New pallets are built from fresh lumber, so their price moves with the lumber market. They are quoted per order.

Do recycled pallets need new heat treatment for export?

Repaired or remanufactured pallets do. Woodpack Global's standard says they must be retreated and remarked, with old marks obliterated, while unrepaired used pallets with a valid mark do not need retreatment.