It is always a choice between the popular blue CHEP pallets or the red PECO pallets for pallet pool customers. With their diverse pallet specifications, price structures, versatility, and repair, reuse, and recycle pallet programs, these pallet pools enable retailers to maximize supply chain speed and efficiency. The following is a breakdown of how each pallet pool works.
Pallets from CHEP vs. PECO
A pallet rental company like CHEP or PECO is a well-established company. Pallet producers, distributors, and retailers can share pools of high-quality pallets through a circular economy framework. Pallets are rented from the shared pool by customers/retailers, and pallets are recovered and fixed as needed by distributors.
The CHEP Pallet Rental Company
A brand of Australian origin, CHEP operates in more than 50 countries around the world. Over 80 million pallets are stored in the United States, part of a global pool of 240M pallets. This company serves clients such as Procter & Gamble, Walmart, and Costco.
The PECO Pallet Rental Company
PECO is based in North America and has over 800 distribution, sorting, and recovery locations. Due to PECO's focus on the grocery market, unlike CHEP, PECO pallets are not used to transport contaminated industrial materials.
Current customers include some of the largest and most well-known food and beverage companies, fresh produce firms, health care providers, and other consumer goods manufacturers.
Blue vs. Red Pallets
PECO and CHEP rental pallets are typically color-coded to differentiate them from standard wooden pallets:
- CHEP pallets are blue
- PECO pallets are red
Dimensions of Rental Pallets
There are several pallet standards provided by CHEP and PECO to meet the needs of a variety of transportation companies.
CHEP Pallet Dimensions
- US CHEP pallets are usually 48" x 40"
- Half pallets of 40" x 24" are also available
- CHEP pallets have a height of 5.6 inches
PECO Pallet Dimensions
- The GMA standard sizes for PECO pallets are 48" x 40" and 48" x 20"
The Cost of Renting Pallets
PECO has a flat-rate pricing system, while CHEP bills based on usage.
CHEP Pricing
In addition to the one-time issue fee, CHEP charges a rental fee. Pallet rental rates are determined by several factors, including:
- The volume of your shipments
- The length of the rental period
PECO Pricing
PECO offers a simple, transparent, uniform price per pallet because it knows the volumes and length of time its customers remain in the supply chain. Pallet orders will be costed upfront for your convenience.
CHEP and PECO Pallets: Wood Quality
There is no wasted material on US PECO and CHEP pallets. Kiln-dried Southern Yellow Pine and other wood species are used to produce high-quality lumber.
Since PECO pallets are mostly used in the food and beverage industry, they do not contain any harmful chemicals or additives. In order to ensure the safety of the pallets, the company hires an external inspector.
Overview: CHEP vs PECO
| Feature | CHEP | PECO |
|---|---|---|
| Color | Blue | Red |
| Global Presence | 50+ countries | North America only |
| US Pool Size | 75M+ pallets | 5M pallets |
| Pricing Model | Usage-based (variable) | Flat rate (transparent) |
| Primary Market | General retail & industrial | Grocery & food/beverage |
| Standard Size | 48" x 40" | 48" x 40" |
The two largest pallet pool management companies are PECO and CHEP. CHEP (Commonwealth Handling Equipment Pool) has branches in North America and the UK, with over 75M pallets in the US painted blue. PECO paints its pallets red and has 5M in its pool, focusing only on North America.
Which Company Should You Choose?
When it comes to rental rates, PECO is usually the better choice if you value predictable costs—it charges a flat rate, so you'll know the cost upfront.
CHEP rental rates, on the other hand, may include variable costs based on:
- Volume of your shipment
- Length of the rental
- Other usage factors
Choose PECO if:
- You're in the food and beverage industry
- You prefer transparent, upfront pricing
- You operate primarily in North America
Choose CHEP if:
- You need international coverage
- You have variable shipping volumes
- You work with major retailers like Costco or Walmart
