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.
A pallet rental company like CHEP or a pallet rental company like 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.
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, Wal-Mart, and Cosco.
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.
PECO and CHEP rental pallets are typically color-coded to differentiate them from the standard wooden pallets. PECO’s pallets are red, while CHEP’s are blue.
There are several pallet standards provided by CHEP and PECO to meet the needs of a variety of transportation companies.
US CHEP pallets are usually 48″ x 40″.Half pallets of 40″ by 24″ are also available.CHEP pallets have a height of 5.6 inches.The GMA standard sizes for PECO pallets are 48″ x 40″ and 48″ x 20″.
PECO has a flat-rate pricing system, while CHEP bills based on usage. 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 and the length of the rental period.
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.
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.
The two largest pallet pool management companies are PECO and CHEP. In addition to having branches in North America and the UK, CHEP stands for Commonwealth Handling Equipment Pool. Over 75M pallets are produced in the US, and they are painted blue to differentiate them from their competitors. PECO, however, paints its pallets red and has only 5M in its pool. North America is its only market.
When it comes to rental rates, PECO is usually the better company; it charges a flat rate, so you’ll know the cost upfront. The CHEP rental rates, on the other hand, include hidden costs according to the volume of your shipment, length of the rental, and other factors. You can compare the services of different rental companies and find out more information about rental rates.
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