§1Side by side
| Point | New wood | Recycled |
|---|---|---|
| Consistency | Uniform within a run | Varies within a grade |
| Price driver | Lumber prices | Core supply and sorting labour, plus lumber for repairs |
| Appearance | Bright, clean | Weathered; repairs visible on #2 |
| Typical use | Export, automation, receivers that ask for new | One-way retail and grocery, internal moves |
| Supply risk | Lumber shortages | Core shortages |
§2Grades are not standard
"#1", "#2", "grade A" and "grade B" mean different things to different recyclers. Write your grade definition into the contract (see the #1 and #2 spec sheets).
§3How prices move
New-pallet prices follow lumber; the BLS lumber indexes tend to lead the wood pallet index. Recycled prices also respond to how many used pallets come back. When new pallets are expensive, demand shifts to recycled and recycled prices rise too, so neither is a hedge against the other.
The monthly index report tracks the BLS wood pallet PPI against softwood and hardwood lumber.
§4Terms that make recycled work
A written grade, an inspection plan, a reject credit at invoice price, pickup of rejects at the supplier's cost, and a rule on whether the supplier may substitute new pallets at the recycled price when cores are short.
§5Test it on your numbers
The calculator opens with both options loaded. Enter your own quotes; nothing is pre-filled.
| Input | ||
|---|---|---|
| Delivered price per pallet ($)From your supplier's quote, including delivery. | ||
| Disposal / handling per trip ($)What you or the receiver pay to get rid of it. | ||
| Buyback credit ($)Credit per pallet from a buyback program, if any. | ||
| Pallet weight (lb)Weigh a sample. | ||
| Freight ($ 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.
§6How to decide
Recycled usually costs less per trip for one-way loads, if you write the grade down and inspect against it. Buy new where consistency or export rules matter.