Pallets: the simple idea that revolutionized logistics without you realizing it

Creating a base to stack products on top of one another and secure them: with that simple yet revolutionary idea, the pallet was invented, an element that often goes unnoticed but plays a crucial role in modern logistics.

Since their inception, these loading platforms have transformed the way goods are moved, stored, and distributed globally, working in tandem with the use of containers (whose history has already been covered in another article).

Over the years, pallets have evolved from being a rudimentary solution to becoming an optimized tool, directly impacting businesses’ operational efficiency and costs. In this article, we shall explore their history, various types, and most relevant applications.

Discover more at: “The 10 most important commercial ports in the world”

What pallets are and how they were created

A pallet, also known as a pallet, skid, or “palé,” is a support platform comprised of boards, enabling uniform stacking and distribution of cargo. Manufactured from materials such as wood or plastic, its main purpose is to facilitate lifting and handling of goods by means of forklifts or pallet jacks, thereby improving efficiency in cargo movement.

The pallet, as a loading platform, originated in the United States during the 1920s. Prior to the invention of this platform, the process of loading and unloading goods was slow and arduous. Products were moved manually, which entailed a high cost in terms of both time and labor. With the invention of the forklift in 1920, the need arose for a platform that would enable more efficient stacking and handling of products.

In 1925, the wooden pallet was invented, and in 1939, Carl Clark designed a platform more akin to those used today. The pallet was a horizontal structure upon which goods were stacked for transportation, storage, and distribution. Thanks to the forklift and other equipment such as pallet jacks, goods began to be transported faster and more safely, both in warehouses and ports.

This advancement was pivotal in the military industry during World War II, as it allowed for efficient stacking and transport of large quantities of supplies. Furthermore, it enhanced transport safety since the goods were more stable, reducing the risk of breakage and falls.

The impact of pallets on global logistics

The introduction of the pallet represented a radical transformation in how goods are handled, stored, and transported. Its adoption optimized logistics processes efficiently, which had a direct impact on cost reduction, improved distribution, and increased storage capacity.

The advent of the pallet brought such significant change that warehouses were completely redesigned and rebuilt specifically to accommodate this type of wooden support. This reconfiguration allowed for a greater storage volume within the same spaces, as pallets make it possible to stack goods in an organized (vertical) and efficient manner, optimizing space utilization. In addition, the internal distribution of products within warehouses was facilitated and accelerated.

The design of the pallet afforded significant stability, reducing the risks of breakage and falls during transport and storage. This characteristic positively contributed to the quality of goods distribution, minimizing product damage and losses.

Types of pallets

There are several classifications of pallets, which are grouped according to dimensions, materials, and design characteristics. Each type has specific applications depending on the sector’s requirements.

These are the main types of pallets:

By dimensions

• European pallet or Europallet: 1,200 x 800 mm. This is the most widely used pallet in Europe and is compatible with most materials handling systems. It supports up to 1,400 kg in motion. Its primary advantages are durability, and in many cases, reparability and reusability.
• American pallet or Isopallet: 1,200 x 1,000 mm. Despite its name, it is common in North America, but it is also used in many other locations due to its versatility, particularly in international trade.
• Half-pallet or Display Pallet: 600 x 800 mm (exactly half the size of a Europallet). Ideal for product display in retail environments and for quick replenishment on store shelves.
• CHEP pallet: 1,200 x 1,000 mm. The term “GMA pallet” originates from the efforts of the Grocery Manufacturers Association (GMA) to standardize pallet sizes and achieve greater efficiency throughout the supply chain. These are a global standard in the logistics industry, particularly well-known for their reusability within distribution networks.
• GMA pallet: The term “GMA pallet” comes from the efforts of the Grocery Manufacturers Association (GMA) in the United States to standardize pallet sizes for improved efficiency in the supply chain. Its dimensions are 1,219 x 1,016 mm, and it is highly durable.

By number of entries

• 4-way entry pallet: 4-way pallets can be accessed from any of their four sides, facilitating their handling by forklifts and other loading equipment.
• 2-way entry pallet: Only accessible from two opposite sides. Their use is more limited compared to 4-way entry pallets, although they are still common in certain storage processes.

By manufacturing material

• Wooden pallets: These are the most common due to their low cost and ease of repair. They represent 90-95% of the global market. They are easy to procure and recycle, but have some disadvantages such as vulnerability to moisture and pests. They are ideal for general loads that do not require special conditions during transport.
• Plastic pallets: These have gained traction in certain sectors, particularly those requiring elevated levels of hygiene, such as the food and pharmaceutical industries. These pallets are lighter than their wooden counterparts and are easy to clean and disinfect.
• Metal pallets: Generally made from steel or aluminum, they are highly durable and primarily used in sectors handling heavy or hazardous materials. They offer great durability, but are also more expensive and heavier, increasing transport costs.
• Cardboard pallets: These are economical, lightweight, and disposable, making them ideal for light products and short-distance transport. They are not suitable for heavy loads or reuse since they have a limited lifespan.

Main manufacturers and distributors of pallets

Today, there are numerous companies specializing in the manufacturing and distribution of pallets, catering to various industries and needs. Among the best-known companies worldwide are:

• CHEP: Their model is based on “share and reuse” and they offer standard pallets widely used in global distribution under a rental (pooling) scheme, rather than for sale. The company operates in more than 60 countries, with the goal of reducing waste and improving the efficiency of supply chains.
• PalletOne is one of the largest manufacturers of wooden pallets in the United States and manages more than 70 operations.
• Cabka: Manufactures high-quality pallets and containers from recycled plastic since 1994. Their products are durable, recyclable, and easy to clean, with an extensive portfolio and presence in multiple sectors. The company operates 6 production centers worldwide.
• The International Pallet Association (IPLA) brings together pallet manufacturers from across the globe, promoting industry standardization and recycling. It has a global network of members and offers a wide range of products and solutions. Additionally, IPLA manufactures auxiliary devices for pallet handling such as stackers, unstackers, pile formers, etc., providing comprehensive, tailor-made solutions.

An accessible and affordable product

In Spain, there are many companies that manufacture, rent, and/or sell pallets made from various materials for all types of industries. Companies such as Rotom, Tradepallet, Itepal, and Grupo Causo are market leaders, offering a wide range of certified models, including cardboard and wooden pallets.

The Seville-based company Renovapalets specializes in buying and selling these products and even manufactures bespoke furniture from wooden pallets. Todocontenedores is another online store that offers used pallets. Other distributors of plastic and/or wooden pallets for logistics use include Induenvas, Ribawood, Antalis, Kaiserkraft, Encaja Embalajes, Embamat, Makro, Leroy Merlin, and even Amazon.

Regarding prices, there is a wide range, depending on quality, size, material, level of technological sophistication, etc. However, pricing can generally be set at between 2.73-3.64 € + VAT (used wooden pallets, in more basic condition and for light loads), up to 36.36-45.45 € + VAT (metal or highly specialized pallets).

If we consider advanced technologies, prices range between:

• Smart pallets with RFID or sensors: 30-60 € + VAT.
• Automated pallets for robotic storage: 70-100 € + VAT.
• Advanced eco-friendly pallets: 25-45€ + VAT.

Photo: Depositphotos.