Pallet Grades Explained: Grade A vs. Grade B Recycled Pallets

“Recycled pallet” covers everything from a unit that looks new to one that’s been rebuilt three times. Grading is how the industry sorts that range so buyers know what they’re getting. The grades aren’t a government standard, so definitions vary a little from yard to yard, but the categories below are what nearly every recycler in the country uses.

The grades

Grade A (also called #1, Premium, or Club)

The best recycled pallet. Characteristics:

  • Stringers are original and uncracked, or have at most a minor repair
  • No companion stringers (see below)
  • Deck boards all present, few or no replacements, no large chips or splits
  • Clean appearance: light staining is normal, heavy discoloration is not

Grade A pallets are the closest thing to new at a recycled price. They’re what you want for customer-facing shipments, retail distribution, and anything going into racking.

Some yards further split this into Premium A (near-new, uniform color) and Standard A.

Grade B (also called #2)

Structurally sound and fully usable, but visibly repaired:

  • One or more stringers have a companion stringer, meaning a cracked stringer was reinforced by nailing a second board alongside it (also called a “plug” or “sister”)
  • More deck board replacements than a Grade A, possibly mixed wood colors
  • More wear, staining, and minor splits

Grade B pallets carry the same nominal load as Grade A when repaired correctly. What you give up is appearance and uniformity. They’re the workhorse for in-house handling, closed-loop shipping, and one-way freight where the pallet won’t be seen by a customer.

Grade C / Combo / Remanufactured

Below B, definitions get loose. Some yards sell a Grade C with multiple companion stringers and heavy wear. Others sell remanufactured or combo pallets built from a mix of recycled and new lumber. These are cheap and fine for one-way shipping but usually not rack-rated.

What a companion stringer is and why it defines the grade

A stringer is one of the three 2×4 runners a standard pallet sits on. When one cracks, a repair shop has two options: replace it (expensive, requires removing deck boards) or reinforce it by nailing a companion board to its side. The companion stringer restores strength but is visible and adds weight. Its presence is the single clearest line between Grade A and Grade B.

Price relative to new

Recycled pallets generally run 30 to 50 percent below new, with Grade A at the top of that band and Grade B below it. Actual pricing moves with the lumber market and with regional supply, so treat any published number as a snapshot. How Much Do Pallets Cost? covers the full picture.

Which grade do you need?

SituationGrade
Customer sees the pallet (retail, food, consumer goods)A
Going into pallet rackingA, or B from a supplier who rack-rates their repairs
Closed loop within your own facilitiesB
One-way freight, pallet won’t come backB or combo
ExportAny grade, but it must be ISPM-15 heat treated and stamped after repair
Automated handling equipmentA, and check the equipment’s tolerance for board gaps

Grading is a judgment call, so ask

Because grading isn’t regulated, “Grade A” from one yard can look like “Grade B” from another. Two questions sort that out fast:

  1. “Do your Grade A pallets have any companion stringers?” The answer should be no.
  2. “Can I see a stack before I commit to volume?” Any yard confident in its sorting will say yes.

A third, if the pallets are going into racking: “Do you rack-rate repaired pallets, and to what load?” A yes with a number is the answer you want.

Frequently asked questions

What is a Grade A pallet?

A recycled pallet with original, uncracked stringers, no companion stringers, and a full deck with few replaced boards. The highest recycled grade, nearest to new.

What is a Grade B pallet?

A recycled pallet that has at least one companion stringer (a reinforcing board nailed alongside a cracked stringer) and more visible wear. Structurally sound, lower cost, less uniform.

Are recycled pallets as strong as new?

A properly repaired Grade A or B carries the same nominal load as a new pallet of the same design. Lower grades and remanufactured pallets may not be rack-rated.

How much cheaper are recycled pallets than new?

Typically 30 to 50 percent less, depending on grade, quantity, and the lumber market.

Buying recycled pallets in DFW?

A&A Pallets sorts every recycled pallet by grade, inspects and repairs it, and delivers across Dallas–Fort Worth. Tell us the grade and volume you need. Call (214) 398-3555.

Related services: New & Recycled Pallets · Pallet Repair · Pallet Buyback & Pickup · All services

Photo: W.carter via Wikimedia Commons, CC0 (source)

Need pallets, repairs or a pickup?

Family-owned and serving the Dallas-Fort Worth metroplex since 1998.