Pallet grading is the system the industry uses to communicate the condition and quality level of a pallet. Understanding grades is essential for making smart purchasing decisions because it determines what you pay, how your pallet performs, and how your products look when they arrive at their destination. Overspending on too-high a grade wastes money. Underspending on too-low a grade risks product damage, customer complaints, and warehouse handling issues.
At Pallets Eco we grade every pallet we sell using a consistent, transparent system. In this guide we explain what each grade means, show you what to look for during inspection, and help you match the right grade to each application in your operation.
Understanding the Grading System
The pallet industry does not have a single universal grading standard, which can cause confusion when working with different suppliers. However, most suppliers use a system based on three primary grades, A, B, and C, sometimes supplemented with plus and minus modifiers. At Pallets Eco we use the following definitions, which are consistent with the most widely accepted industry conventions.
Grade A: Premium Quality
Grade A pallets are in like-new or near-new condition. They have clean, bright wood with minimal discoloration. All boards are intact with no cracks, splits, or missing pieces. Stringers or blocks show no significant damage. Nails are fully driven with no protrusion. The pallet meets or exceeds original dimensional tolerances. Grade A pallets may have been used one or two times or may be remanufactured to like-new standards with all worn components replaced.
When to Use Grade A
- Export shipments where the pallet represents your company to international customers
- Retail club store deliveries where pallets are visible on the sales floor such as Costco and Sams Club
- Pharmaceutical and medical product shipments requiring pristine packaging
- Customer-facing shipments where pallet appearance impacts brand perception
- Automated warehouse systems where dimensional precision is critical for equipment compatibility
- Food industry applications requiring the highest level of cleanliness and structural integrity
Grade B: Standard Quality
Grade B pallets are the workhorse of the recycled pallet market. They are fully functional and structurally sound but show visible signs of use. Wood may be darker or weathered. Minor cosmetic imperfections such as light staining, small chips, or superficial board marks are acceptable. All boards are intact and securely fastened. There may be evidence of previous repairs such as replacement boards. The pallet meets dimensional tolerances within normal wear margins.
Grade B represents the best value in the pallet market. These pallets cost 30 to 50 percent less than Grade A while performing identically in non-appearance-critical applications. At Pallets Eco, Grade B is our highest-volume grade because it meets the needs of the vast majority of warehousing and distribution operations.
When to Use Grade B
- General warehousing and internal distribution where appearance is not a factor
- Domestic freight shipments to distribution centers and warehouses
- Manufacturing plant transfers and work-in-progress staging
- Standard retail replenishment shipments where pallets are not customer-visible
- Third-party logistics operations managing multi-client inventory
- Any application where structural performance matters more than cosmetic appearance
Grade C: Economy Quality
Grade C pallets are the budget option. They are structurally functional for lighter loads and less demanding applications but show significant wear. Wood is typically dark or heavily weathered. Some boards may have staining or discoloration. Minor repairs may be visible with replacement boards that do not match the original wood color. The pallet may be at the outer edge of dimensional tolerances. Despite their appearance, Grade C pallets are still inspected for safety and will support the loads they are rated for.
When to Use Grade C
- One-way shipments where the pallet will not be returned
- Internal plant transfers and short-distance moves within a facility
- Temporary storage applications where pallets will be used briefly
- Lightweight product applications with loads well under maximum rated capacity
- Construction sites and industrial yards where pallets face rough conditions regardless
- Seasonal overflow situations where temporary pallet inventory is needed at the lowest cost
The Cost Difference Between Grades
Understanding the cost differential helps you make an informed decision. For a standard 48x40 pallet at Pallets Eco, Grade A recycled typically costs 9 to 14 dollars, Grade B costs 5 to 9 dollars, and Grade C costs 3 to 6 dollars. New pallets for comparison start at 11 to 18 dollars. The savings from using the appropriate grade rather than defaulting to the highest grade are significant at scale.
For a company using 20,000 pallets per year that switches from all Grade A to a mix of 20 percent Grade A, 60 percent Grade B, and 20 percent Grade C, the annual savings typically range from 40,000 to 100,000 dollars depending on specific pricing. That is money that can be redirected to other supply chain improvements.
How to Inspect Pallets by Grade
- 1Check all deck boards for cracks, splits, or missing sections. Grade A should have none. Grade B allows minor cosmetic issues. Grade C allows moderate wear but no structural compromise.
- 2Examine stringers or blocks for damage, rot, or cracks. All grades must be structurally sound at the stringer level.
- 3Verify all nails are fully driven with no protrusion greater than one-eighth inch. Protruding nails are a safety and product damage risk at any grade.
- 4Test dimensional accuracy with a tape measure. Grade A should be within one-eighth inch of spec. Grade B within one-quarter inch. Grade C within three-eighths inch.
- 5Look for contamination, chemical stains, or unusual odors. These disqualify a pallet from food and pharmaceutical applications regardless of structural grade.
- 6Place the pallet on a flat surface and check for warping or rocking. The pallet should sit flat with no more than one-half inch of deviation at any corner.
Let Pallets Eco Help You Grade-Match
The optimal approach is to map every pallet application in your operation and assign the appropriate grade to each one. Pallets Eco can help you through this process. We will review your shipping destinations, product types, customer requirements, and warehouse operations to recommend a grade strategy that minimizes cost while meeting every quality requirement. Contact us for a free grade optimization consultation.