Supply Chain
How Pallets Move Through Australia
From manufacturer to retailer to recycler — the full lifecycle of a pallet in the Australian supply chain.
Manufacture
New pallets are manufactured from hardwood or softwood timber (or plastic) by Australian manufacturers or imported. The standard AU pallet is 1165×1165mm per AS 4068.
First-mile distribution
Manufacturers and producers load pallets at the source. CHEP and LOSCAM hire pallets are sourced from service centres. Privately-owned pallets depart with the first shipment.
Distribution centres
Goods move through DCs where pallets are sorted, consolidated and transferred. CHEP pallets are often swapped here — the hire cycle is managed by scanning.
Retail delivery
Pallets reach supermarkets, hardware stores and retail outlets. Many retailers require CHEP or LOSCAM-standard pallets. Consumer goods are often depalletised here.
Pallet recovery
Empty hire pallets are collected from retail locations and returned to CHEP/LOSCAM depots. Privately-owned pallets may be sold, stored, or go to recyclers.
Recycling & refurbishment
Damaged pallets are repaired or broken down. Grade A: resold. Grade B/C: repaired. Beyond repair: chipped for mulch, particleboard or biomass.
Hire vs Owned Pallets
Hire pools (CHEP/LOSCAM)
- Pallets stay within the pool network
- Businesses pay per trip or per day
- Maintenance handled by pool operator
- Strong in FMCG and grocery sectors
- Reduces capital tied up in pallets
Privately owned pallets
- One-way: travels with goods, not returned
- Businesses buy in bulk from manufacturers
- Lower per-unit cost for high-volume users
- Common in export, agriculture, manufacturing
- Recycling/resale is owner's responsibility
Ready to buy or sell pallets?
Whether you need pallets for manufacturing or have surplus stock to offload, PalletFinder and Pallet Hubs connect buyers and sellers Australia-wide.