Pallet Types
CHEP Pallets in Australia
The iconic blue pallets of the CHEP pool — how the system works, what it costs, and when to use alternatives.
CHEP Pallet Facts
What is a CHEP Pallet?
CHEP (Commonwealth Handling Equipment Pool) pallets are the blue wooden pallets you see throughout Australian supermarkets, distribution centres and retail supply chains. They are owned and maintained by Brambles Limited, an Australian-founded global logistics company.
Unlike most pallets, CHEP pallets are never sold. Businesses pay a hire and transfer fee to use them. The pooling model means CHEP manages pallet maintenance, replacement and retrieval — businesses simply use them as needed.
How the CHEP Pooling System Works
When you work with CHEP, you pay a fee each time a pallet enters your network. You're responsible for the pallet while it's in your possession. When pallets move to your customers, you transfer the fee obligation. Lost or damaged pallets incur additional charges.
The system is mandatory in the Woolworths and Coles supply chains — if you supply to major Australian supermarkets, CHEP participation is essentially required.
CHEP Alternatives
Businesses looking to avoid CHEP costs have several options: purchasing standard AS pallets outright, using the LOSCAM pool (competitor to CHEP), or managing their own pallet pool for closed-loop operations. Independent operators often find owning pallets more cost-effective for fixed routes.