What CHEP is and who uses it

CHEP is a pallet pooling company that owns and maintains pallets instead of selling them to you. You rent pallets from CHEP, use them to move goods, and return them to a CHEP location when you are done. CHEP owns about 300 million pallets worldwide and operates in more than 60 countries. In North America, CHEP competes directly with iGPS (plastic pallets) and wooden pallet sellers, but works differently from both.

CHEP pallets are wooden and built to a standard size — most are 48 by 40 inches. Because CHEP maintains them, you do not repair or replace broken pallets yourself. You pick up a pallet, use it, drop it off at a CHEP service point, and CHEP handles the rest. This model works best for businesses that move goods regularly — retailers, manufacturers, food distributors, and logistics companies. Small businesses or one-time shippers usually find it cheaper to buy used pallets or rent from a local wooden pallet company.

Key Takeaways

  • CHEP charges a rental fee per pallet per day, plus a deposit you get back when you return the pallet in acceptable condition.
  • You pick up pallets at a CHEP service point and drop them off at another CHEP location — you do not have to return to the same place.
  • CHEP repairs or replaces damaged pallets at no extra cost to you, which is the main reason businesses use the pool instead of buying pallets outright.
  • Pricing varies by region and pallet type, so you need a quote from CHEP directly — published rates do not exist online.
  • CHEP works best for regular shippers; occasional users usually pay less by buying used pallets or renting from a local wooden pallet company.

How CHEP rental pricing works

CHEP charges two separate fees: a daily rental rate and a deposit. The daily rate covers the cost of using the pallet for one day. The deposit is a one-time charge per pallet that you pay upfront and get back when you return the pallet. Deposits typically range from $10 to $15 per pallet, though this varies by region and pallet condition.

Daily rental rates depend on how long you keep the pallet and your location. A pallet rented for one day costs more per day than a pallet rented for 30 days — CHEP offers volume discounts for longer rentals. Rates also shift by region because CHEP's costs to move and maintain pallets differ across the country. You cannot find standard rates on CHEP's website; you must contact a CHEP sales representative or use their online quote tool to see what you would pay.

The total cost to you is: (daily rate × number of days) + deposit. When you return the pallet in acceptable condition, CHEP refunds the deposit. If the pallet is damaged beyond normal wear, CHEP may keep part or all of the deposit, or charge you a damage fee. CHEP defines acceptable condition in your rental agreement — usually this means no broken boards, no major dents, and no contamination.

Picking up and returning pallets

CHEP operates service points in most major cities and many smaller ones. You contact CHEP, arrange a pickup time, and go to the nearest service point to collect your pallets. You do not have to return pallets to the same location where you picked them up — CHEP's network allows you to drop off at any service point. This flexibility is one reason businesses prefer CHEP to buying pallets: you can pick up in one city and drop off in another without owning the pallet.

Pickup and dropoff are usually free if you do them yourself at a service point during business hours. Some CHEP locations offer delivery and pickup for an extra fee, which is useful if you do not have a truck or if your location is far from a service point. You can also arrange for CHEP to pick up pallets from your site, though this costs more than dropping them off yourself.

Rental time starts when you pick up the pallet and ends when CHEP receives it back at a service point. If you drop off after hours, the pallet may not be checked in until the next business day, which extends your rental period. Always ask CHEP when your rental ends so you do not pay for extra days.

What happens to damaged or lost pallets

One of the main reasons to use CHEP instead of buying pallets is that CHEP repairs or replaces them for you. If a pallet breaks during normal use — a board cracks, a nail bends, a corner gets dented — you return it and CHEP fixes it at no charge. You do not pay for repairs, and you do not have to find a repair shop. CHEP's maintenance team inspects every returned pallet, repairs what can be fixed, and removes pallets that are beyond repair from the pool.

If you lose a pallet or return it in condition that CHEP considers damage beyond normal wear, you will be charged. The charge is usually the full replacement cost of the pallet, which can range from $100 to $150 depending on the pallet type and your region. CHEP defines what counts as normal wear in your rental agreement — stains, minor dents, and light surface damage usually do not trigger a charge, but broken boards, missing boards, or contamination do.

To avoid damage charges, inspect pallets before you take them and document any existing damage. If a pallet arrives damaged, refuse it and ask for a replacement. Keep your rental agreement handy so you know what CHEP considers acceptable condition.

CHEP versus buying or renting pallets elsewhere

The choice between CHEP and other pallet options depends on how often you ship and how much you value convenience. If you ship regularly — weekly or more — CHEP usually costs less over time because you do not have to buy, repair, or replace pallets. The daily rental fee is predictable, and CHEP handles all maintenance. For a business that ships 50 pallets a week, the math often favors CHEP.

If you ship occasionally or one time, buying used pallets or renting from a local wooden pallet company is usually cheaper. A used pallet costs $10 to $25 and can be resold or given away when you are done. A local rental company may charge less per day than CHEP because they do not maintain a national network. The tradeoff is that you are responsible for repairs and you have to return pallets to the same location.

iGPS plastic pallets are another alternative. They are lighter than wood, do not splinter, and last longer, but they cost more to rent and are not accepted by all retailers. Some major retailers require CHEP or wooden pallets specifically. Check with your customers or suppliers before choosing a pallet type.

How to get a CHEP quote and set up an account

Contact CHEP directly through their website or by phone to request a quote. You will need to tell them how many pallets you need, how long you plan to keep them, and where you will pick them up and drop them off. CHEP will give you a price based on your region and rental period. Quotes are usually valid for 30 days, so you have time to decide.

To open an account, CHEP will ask for your business name, address, and contact information. You may also need to provide a credit card or bank account for the deposit and rental charges. Some CHEP locations require a signed agreement before your first rental. Ask CHEP whether they offer volume discounts if you plan to rent many pallets regularly — discounts are negotiable and not published.

If you are a new customer, CHEP may require a deposit or credit check. This is standard practice and does not mean you are ineligible. Once your account is open, you can pick up pallets online or by phone, usually with 24 hours notice.

Common mistakes to avoid when renting from CHEP

The most common mistake is not returning pallets on time. Rental charges continue to accrue every day you hold a pallet, even if you are not using it. If you finish a job early, drop the pallet off when ready instead of waiting. A pallet rented for 30 days that you return after 45 days will cost you 15 extra days of rental fees.

Another mistake is not inspecting pallets before you take them. If a pallet arrives with damage and you do not report it, CHEP may charge you for that damage when you return it. Always look at the pallet, check for broken boards and stains, and refuse any that do not meet the condition standard in your agreement. Document damage with a photo if possible.

A third mistake is not understanding what counts as damage. Pallets get dirty and dented during normal use — CHEP expects this. But if you spill chemicals on a pallet, break multiple boards, or lose parts, CHEP will charge you. Read your rental agreement carefully so you know the line between normal wear and damage.

Frequently Asked Questions

Can I buy a CHEP pallet instead of renting it?

No. CHEP only rents pallets; they do not sell them. If you want to own a pallet, you need to buy from a wooden pallet company or a used pallet dealer. CHEP's business model is based on pooling — they own the pallets and maintain them across a network of users.

What if I need pallets delivered to my location instead of picking them up?

CHEP offers delivery service at most locations, but it costs extra. The delivery fee depends on your distance from the nearest CHEP service point and how many pallets you need. Ask for a delivery quote when you request your rental quote. For small orders, delivery may cost more than the rental itself.

Do I have to return pallets to the same CHEP location where I picked them up?

No. You can pick up at one CHEP service point and drop off at any other CHEP location. This is one of the main advantages of the pool system — you do not have to backtrack. Just make sure the dropoff location is open when you plan to return the pallets.

What happens if a pallet is damaged while it is in my possession?

If the damage is normal wear — dents, dirt, minor surface damage — CHEP covers the repair at no cost to you. If the damage is beyond normal wear — broken boards, contamination, missing parts — CHEP will charge you a damage fee or the full replacement cost. The exact threshold is in your rental agreement.

How long does it take to get a CHEP account set up?

Most new accounts are approved within one business day. CHEP may ask for a credit card or bank account information for the deposit and charges. If you need pallets urgently, call CHEP directly instead of using the website — they can sometimes expedite approval for same-day pickup.