Introduction: Why Pallet Selection Matters
Choosing the right pallet might seem like a simple decision, but it is actually one of the most impactful logistics choices a business can make. The wrong pallet can lead to product damage, worker injuries, rejected shipments, wasted money, and environmental harm. The right pallet, on the other hand, protects your products, keeps your workers safe, satisfies your customers, saves you money, and supports sustainability goals.
With dozens of pallet types, sizes, materials, and grades available, the selection process can feel overwhelming. This guide breaks down the seven key factors you should consider when choosing a pallet, provides industry-specific recommendations, analyzes the cost implications of different choices, and gives you a practical checklist you can use for every pallet purchasing decision.
Whether you are purchasing pallets for the first time or looking to optimize your existing pallet program, this guide will give you the knowledge to make confident, cost-effective decisions. And remember — our team at Cleveland Pallet is always available to provide personalized recommendations based on your specific needs.
Factor 1: Load Weight & Capacity
The most critical factor in choosing a pallet is the weight it needs to support. Pallets have three distinct load ratings, each applicable to different handling scenarios. Understanding these ratings is essential for safe and efficient pallet use.
| Load Type | Definition | Typical Rating (GMA) | When It Applies |
|---|---|---|---|
| Dynamic Load | Weight while being moved by forklift | 2,500-2,800 lbs | Loading, unloading, transport |
| Static Load | Weight while stationary on floor | 5,000-5,600 lbs | Floor storage, stacking |
| Racking Load | Weight while on pallet racking | 1,500-2,000 lbs | Warehouse racking systems |
Key Takeaway: Always base your pallet selection on the most demanding load scenario your pallets will face. If your pallets will be stored on racking, use the racking load rating — which is the lowest of the three — as your guide. A pallet that is adequate for floor storage may fail catastrophically on racking if overloaded.
Rule of thumb: For loads under 2,000 lbs, standard stringer pallets work well. For loads between 2,000-4,000 lbs, use heavy-duty stringer or block pallets. For loads over 4,000 lbs, custom-built heavy-duty pallets are recommended. Always factor in a safety margin — industry best practice is to load pallets to no more than 80% of their rated capacity to account for uneven load distribution and the cumulative effects of use.
Factor 2: Application & Environment
Where and how you will use the pallet determines the best type. Different environments place different demands on pallet materials, construction, and finish. Here is a detailed guide to matching pallets to applications:
Warehouse Storage
Recommended: Grade B wood pallets — great value for internal use. Block pallets preferred for racking; stringer pallets fine for floor storage.
Why: Internal use does not require cosmetic perfection, and Grade B pallets are fully structural.
Export Shipping
Recommended: ISPM-15 heat-treated wood or plastic pallets for compliance with international phytosanitary regulations.
Why: Non-compliant pallets will be rejected at foreign ports, potentially destroying your shipment and timeline.
Food Processing
Recommended: Plastic pallets or FDA-compliant treated wood. Must be washable and resistant to moisture and bacteria.
Why: Food safety regulations require materials that can be sanitized and that do not harbor biological contaminants.
Retail Display
Recommended: Grade A or display-specific half pallets (48x20"). Sanded and finished pallets available for high-visibility applications.
Why: Customer-facing pallets reflect on your brand. Visual appearance matters as much as structural performance.
One-Way Shipping
Recommended: Grade C economy pallets — lowest cost per trip. No need to invest in premium pallets that will not be returned.
Why: When the pallet will not come back to you, minimize your investment. Grade C pallets ship products just as safely.
Automated Systems
Recommended: Block pallets or plastic pallets with tight dimensional tolerances for consistent handling by conveyor and robotic systems.
Why: Automated systems require uniformity. Even small dimensional variations can cause jams, errors, or damage.
Cold Storage / Freezer
Recommended: Plastic pallets or treated wood pallets rated for freeze-thaw cycles. Moisture resistance is critical.
Why: Repeated freezing and thawing causes untreated wood to absorb moisture, swell, warp, and eventually fail.
Outdoor Storage
Recommended: Treated wood pallets or plastic pallets with UV resistance. Hardwood preferred over softwood for durability.
Why: Rain, sun, and temperature changes degrade untreated wood rapidly. Weather-resistant pallets last significantly longer outdoors.
Factor 3: Material (Wood vs Plastic)
The two primary pallet materials — wood and plastic — each have distinct advantages. The right choice depends on your application, budget, reuse frequency, and compliance requirements.
| Feature | Wood Pallets | Plastic Pallets |
|---|---|---|
| Initial Cost | $4-$15 (used), $15-$30 (new) | $40-$120+ |
| Lifespan | 3-5 years (15-20 trips) | 10+ years (100+ trips) |
| Repairability | Easily repairable | Not repairable |
| Weight | 30-70 lbs | 15-55 lbs |
| Hygiene | Porous — absorbs moisture/bacteria | Non-porous — easy to sanitize |
| ISPM-15 Compliance | Requires heat treatment | Exempt — no treatment needed |
| Recyclability | Highly recyclable (mulch, fuel) | Recyclable (ground plastic) |
| Load Capacity | Very high (esp. hardwood) | Moderate to high |
| Environmental Impact | Renewable resource, low energy | Petroleum-based, higher energy |
| Best For | General warehousing, shipping, budget | Food, pharma, export, high-reuse |
Hardwood vs Softwood: Within the wood pallet category, you also have a choice between hardwood and softwood. Hardwoods like oak are denser, heavier, and more durable — ideal for heavy loads and harsh environments. Softwoods like pine are lighter, more affordable, and widely available — perfect for standard shipping and warehousing. For most applications, softwood pallets offer the best balance of performance and economy.
The cost per trip is often more useful than the upfront price for comparison. A $5 used wood pallet that makes 10 trips costs $0.50 per trip. A $75 plastic pallet that makes 100 trips costs $0.75 per trip. But if you only need 3 trips, the wood pallet wins at $1.67 per trip vs. $25 per trip for plastic. Analyze your actual reuse patterns to determine which material delivers the best total value for your operation.
Factor 4: New vs Used
For most applications, used pallets are the smart choice. They are 40-60% cheaper than new pallets, equally functional for standard applications, and far more sustainable. Used pallets make economic and environmental sense for the vast majority of warehousing, shipping, and storage applications.
New pallets make sense only in specific scenarios: when you need exact, uniform dimensions for automated systems that cannot tolerate any variation; when you need pristine appearance for retail display or customer-facing applications; when a customer contractually requires new pallets; or when you need a specialized construction (species, fastener type, treatment) that is not available in the used market.
Key Takeaway: We always recommend starting with used pallets and upgrading to new only if you encounter a specific limitation. Many customers who initially assume they need new pallets discover that Grade A used pallets meet their needs perfectly at 40-60% less cost. The quality of well-graded used pallets often surprises first-time buyers.
Choose Used When...
Choose New When...
Factor 5: Pallet Grade
Understanding pallet grades helps you get the best value. Each grade represents a specific condition level, and smart buyers match the grade to the application rather than defaulting to the highest quality available.
Grade A — Premium
Like-new condition with minimal wear. No broken, cracked, or repaired boards. Uniform coloring and clean appearance. All fasteners secure and properly seated. Stringers/blocks in excellent condition with no visible damage.
Best for: Retail display, customer-facing applications, premium branding, automated systems, pharmaceutical and food-adjacent use.
Grade B — Standard
Light to moderate wear, fully functional. May show signs of use such as minor scuffs, staining, or slight discoloration. All structural components intact and secure. May have minor cosmetic blemishes but no structural deficiencies.
Best for: General warehousing, shipping, storage — the best value for most business applications. Our highest-volume grade and our strongest recommendation for cost-conscious buyers.
Grade C — Economy
Visible wear, may include repaired boards (replaced or re-nailed). Shows clear signs of multiple use cycles. Still structurally sound and safe for its rated load capacity. May have cosmetic issues like deep staining, rough surfaces, or visible repair marks.
Best for: Single-use or one-way shipping, light-duty storage, construction sites, any application where appearance does not matter and the pallet will not be returned.
Key Takeaway: Grade B pallets are the sweet spot for most businesses. They deliver the best balance of quality and value, and they perform identically to Grade A for non-customer-facing applications. If you are not sure which grade to choose, start with Grade B — you will save money without sacrificing functionality, and you can always upgrade specific use cases later if needed.
Factor 6: Stringer vs Block
Pallet construction falls into two main categories: stringer pallets and block pallets. The differences affect handling flexibility, load capacity, compatibility with equipment, and cost.
Stringer Pallets
Use 2-3 long boards (stringers) running lengthwise to support the deck. The most common and affordable type, accounting for roughly 80% of all pallets in the U.S. Standard stringer pallets offer 2-way forklift entry; notched stringers allow partial 4-way entry. Easy to repair by replacing individual boards or stringers.
Block Pallets
Use 9 blocks (corners, edges, center) to support the deck. True 4-way entry allows forklift access from any side, which is critical for efficient warehouse operations and automated handling systems. Generally stronger and more durable, but more expensive and harder to repair.
Choose stringer pallets for general use, shipping, and applications where cost is the primary concern. Choose block pallets when you need 4-way fork access, when pallets will be used in automated systems, when loads are heavy, or when you are shipping internationally (block pallets are the global standard in many countries, particularly in Europe where the EUR/EPAL pallet is a block design).
Factor 7: Size & Dimensions
Choosing the right pallet size affects shipping costs, storage efficiency, truck utilization, and product protection. The standard 48x40 inch GMA pallet is the most common size in North America, but it is not always the best choice for every application.
To determine the optimal size, consider these factors: the dimensions of your products (pallets should be slightly larger than the product footprint to prevent overhang or wasted space), your truck or container dimensions (standard 53-foot trailers fit two rows of 48-inch pallets), your racking system dimensions (ensure the pallet fits your beam spacing), and your storage space constraints.
Visit our Pallet Size Guide for a complete reference of standard pallet dimensions, load capacities, industry applications, and international standards. If none of the standard sizes fit your needs, we can build custom pallets to any dimension.
One important consideration: non-standard sizes typically cost more and have lower resale value on the secondary market. If you can standardize on the 48x40 GMA pallet or another common size, you will benefit from lower costs, faster availability, and easier disposal or resale at end of life.
Industry-Specific Recommendations
Different industries have different pallet requirements based on their products, regulations, and operational environments. Here are tailored recommendations for the most common industries we serve:
| Industry | Recommended Type | Recommended Grade | Key Considerations |
|---|---|---|---|
| Manufacturing | Wood stringer, Grade B | B or C | Volume pricing, repair program, standing orders |
| Distribution / 3PL | Wood block or stringer | A or B | 4-way entry for efficiency, mixed sizes for diverse clients |
| Food & Beverage | Plastic or treated wood | A | FDA compliance, sanitation, ISPM-15 if exporting |
| Pharmaceutical | Plastic (nestable) | A | Cleanroom compatible, no splinters, easy to wash |
| Retail | Wood GMA (48x40) or half pallet | A | Appearance matters, display pallets, standard sizes |
| Construction | Wood stringer, heavy-duty | B or C | High load capacity, weather resistance, expendable |
| Automotive | Wood block or custom | A or B | Precise dimensions, heavy parts, rack compatible |
| E-commerce / Fulfillment | Wood stringer, various sizes | B | Mixed sizes for varied products, fast turnaround |
| Chemical | Plastic or treated wood | A or B | Chemical resistance, spill containment, ISPM-15 |
| Agriculture | Wood stringer | B or C | Cost-effective, weather tolerant, expendable for field use |
Cost Analysis & ROI
Understanding the true cost of pallets requires looking beyond the purchase price. The total cost of ownership includes the initial purchase, transportation, handling labor, storage space consumed by empty pallets, damage/loss replacement, and disposal costs. Here is how different approaches compare for a business using 1,000 pallets per year:
| Cost Factor | New Pallets | Grade B Used | Savings |
|---|---|---|---|
| Purchase (1,000 units) | $15,000-$25,000 | $5,000-$8,000 | 55-68% |
| Delivery | $500-$1,000 | $0-$500 (often free) | 50-100% |
| Replacement (annual) | $3,000-$5,000 | $1,000-$2,000 | 60-67% |
| End-of-Life Disposal | $500-$1,000 | $0 (we buy them back) | 100% |
| Total Annual Cost | $19,000-$32,000 | $6,000-$10,500 | 56-67% |
These figures illustrate why used pallets are the clear winner for most operations. The savings are immediate and substantial, and they compound over time as you establish a relationship with your supplier and qualify for volume pricing. For businesses spending $20,000 or more per year on new pallets, switching to used can free up $10,000-$15,000 annually — money that can be invested in growth, equipment, or other priorities.
Buyer's Checklist
Use this checklist every time you are making a pallet purchasing decision. It ensures you consider all the important factors and make the most cost-effective choice:
Final Takeaway
The right pallet choice depends on your specific application, but for the vast majority of businesses, the answer is Grade B used wood stringer pallets in the standard 48x40 GMA size. This combination delivers the best balance of performance, availability, cost, and sustainability. Start there, and adjust based on the specific needs identified in the buyer's checklist above. When in doubt, contact our team — we have helped hundreds of businesses find the right pallet solution, and we are happy to help you too.