§1Side by side
| Point | CHEP | PECO |
|---|---|---|
| What you rent | 48×40 block pallet, painted blue | 48×40 block pallet, painted red |
| Fee structure, as reported in trade press | Fee components that can include an issue fee, daily rental, transfer and lost-equipment charges | A flat per-pallet rate, reported as set from the customer's average dwell time and reviewed periodically |
| What drives your bill | How long pallets stay on your account (dwell) and how quickly you declare transfers | Your average dwell at the time the rate is set, and how that changes at review |
| Who returns the pallet | The pool collects from the receiver's DC | The pool collects from the receiver's DC |
| Receivers that ask for it | Check each receiver's document; Kroger lists pooled pallets as its first choice | Same; Walmart's WFS guide asks sellers not to ship on PECO or CHEP pallets |
§2How the fees work
Rental-pallet contracts can carry several fee types: issue fees, transfer fees, transport rates, daily rental, lost-equipment charges, emergency load fees and restocking fees, according to Pallet Enterprise's guide to rental pallet contracts. Which ones apply, and at what level, is in your own agreement.
Trade press has described PECO's model as a single all-in rate per pallet instead of separate issue and rental fees (Logistics Management). A flat fee is easier to forecast, but the rate is still built from dwell, so slow-turning lanes still cost more.
None of this tells you which pool is cheaper for you. That depends on your dwell days, your transfer discipline, how many pallets go missing, and the rates you negotiate.
§3Compare them per trip
Put both quotes into the same formula. For a fee-component pool: cost per trip = issue fee + daily rent × dwell days + transfer fee + loss rate × lost-pallet charge + admin fees ÷ trips. For a flat-fee pool, set daily rent to zero and use the flat fee as the issue fee.
Then add the tare-freight cost, which is the same for both pools if the pallets weigh the same, and compare. The calculator below starts with this comparison loaded.
§4What your receivers accept
Your customers' receiving rules can decide this before price does. Kroger's general procurement guidelines list pooled pallets (CHEP, PECO, iGPS) as the first choice for deliveries to its DCs. Walmart's WFS seller guide says not to ship on PECO or CHEP pallets. Read the receiver requirement pages and the receiver's own current document before you sign.
§5What to negotiate
Ask each pool for a quote broken into every fee it can charge, the dwell days it assumed, and how the rate changes at review. Ask how lost pallets are declared and billed, how disputes over transfers are settled, and what reports you get each month. Then run the numbers at your real dwell and at 50% longer, because dwell is where forecasts go wrong.
§6Test it on your numbers
The calculator opens with both options loaded. Enter your own quotes; nothing is pre-filled.
| Input | ||
|---|---|---|
| Loss per trip (%)Share of pallets that don't come back each trip. Measure it. | ||
| Issue fee or flat fee ($)From the pool's quote. For a flat-fee pool, enter the flat fee here. | ||
| Daily rent ($/day)Leave 0 for a flat-fee pool. | ||
| Dwell daysDays on your account, from transfer reports. | ||
| Transfer fee ($)Per pallet transferred, if charged. | ||
| Lost-pallet charge ($)From the contract. | ||
| Admin fees per year ($)Account or reporting fees. | ||
| Pallet weight (lb)Weigh a sample. | ||
| Freight ($ per cwt)Your LTL rate per 100 lb, if you pay by weight. | ||
| Freight legs per tripLoaded legs that carry the pallet's weight. | ||
| Cost per trip | n/a | n/a |
| Cost per year | n/a | n/a |
| Net present cost, 3 yr at 8% | n/a | n/a |
Enter a price (or a pool's fee) in at least one scenario to compare.
How these numbers are calculated
One-way: CPT = P + D − S
Closed loop: N = min(L_trips, 1/ℓ)
CPT = (P − S_end)/N + R_c + H + ℓ·P + Rep
Pooled: CPT = F_issue + r_day·d + F_transfer + ℓ·F_lost + F_admin/trips
Plastic: closed loop + W (wash) per trip
All: + tare freight T = w × ($/cwt ÷ 100) × legs
Annual = CPT × trips per year
NPV = capital at t=0 + Σ annual / (1+i)^t, t = 1..years
Capital (owned loops) = pool size × P, pool size = trips/yr ÷ min(N, 52)
Break-even dwell d* = (CPT_owned − F_issue − F_transfer − ℓ·F_lost) / r_dayPool size assumes each pallet turns at most weekly. Results are only as good as the inputs.
§7How to decide
Neither pool is cheaper in general. Get both quotes in full, convert them to cost per trip at your real dwell days, and check which pallets your receivers accept.