What IGPS is and how it differs from standard pallets

IGPS (Integrated Global Pallet System) is a pooled pallet network that operates differently from the wooden or plastic pallets most businesses own outright. Instead of purchasing pallets, companies using IGPS rent them from a managed fleet. IGPS pallets are plastic, standardised across the network, and tracked electronically so they can be returned, cleaned, and redistributed to other users.

The core difference is ownership versus access. A company that buys wooden pallets owns them indefinitely, stores them, repairs them, and disposes of them. A company using IGPS pays a rental fee per pallet per trip and returns the pallet to any IGPS location in the network. IGPS handles cleaning, repair, and redeployment. The pallets themselves stay in the IGPS system rather than sitting in a warehouse or yard.

IGPS operates in North America, Europe, and parts of Asia. The network includes thousands of drop-off and pick-up locations, so a shipper can return a pallet at a different location from where they received it. This flexibility is what makes the pooled model work — pallets move continuously through the network rather than getting stuck at individual facilities.

Key Takeaways

  • IGPS pallets are rented per trip rather than purchased, and the rental fee covers cleaning and repair between uses.
  • IGPS pallets are plastic, standardised in size and weight, and tracked electronically throughout the network.
  • You return IGPS pallets to any authorised IGPS location, not necessarily to the sender, which reduces empty backhauls and storage needs.
  • IGPS works best for companies with regular shipping volumes and predictable pallet flows, since rental costs add up quickly with sporadic use.
  • The upfront cost is lower than buying pallets, but the per-trip rental fee means total cost depends on how many pallets you move and how often.

How IGPS rental pricing works

IGPS charges a rental fee per pallet per trip. A trip is defined as movement from one location to another — so a pallet that travels from a warehouse to a customer and back counts as two trips. The rental rate varies by region and by IGPS partner, and it changes based on market conditions and fuel costs.

You also pay a deposit per pallet when you first receive it from IGPS. This deposit is refunded when you return the pallet in acceptable condition. If a pallet is damaged beyond repair or not returned, you forfeit the deposit. Deposits typically range from $10 to $20 per pallet, though this varies by location and provider.

Some IGPS users also pay monthly subscription or membership fees to access the network, depending on their contract with IGPS or an IGPS partner. High-volume shippers may negotiate flat rates or volume discounts. The total cost of using IGPS versus buying pallets depends on your shipping frequency, distance, and how long pallets sit idle at your facility.

When IGPS makes financial sense

IGPS is most cost-effective for companies that ship regularly and don't need pallets to sit in storage for long periods. If you move 50 pallets a week, IGPS rental fees are predictable and you avoid the capital expense of buying 200 pallets upfront. If you ship sporadically — say, 10 pallets a month — the rental fees may exceed what you'd spend buying and maintaining your own pallets.

IGPS also saves money when you have unbalanced shipping lanes. If you send products to a region but rarely receive shipments back, you'd normally have to pay to return empty pallets or buy new ones at the destination. With IGPS, you return the pallet to any IGPS location and the network handles redistribution. This eliminates the cost of backhaul or storage at remote sites.

Companies with limited warehouse space benefit from IGPS because pallets don't accumulate on-site. You receive a pallet, unload it, and return it within days. Businesses that handle perishables, pharmaceuticals, or other regulated goods sometimes prefer IGPS because the pallets are cleaned and sanitised between uses, which reduces contamination risk and compliance burden.

How to return IGPS pallets and what happens if they're damaged

You return IGPS pallets to any authorised IGPS drop-off location. These include distribution centres, warehouses, retail locations, and dedicated IGPS service points. You can find nearby return locations through the IGPS website or mobile app. Most locations accept returns during business hours, and some offer after-hours drop-off.

When you return a pallet, IGPS staff inspect it for damage. Minor wear — small cracks, faded markings — does not affect the deposit refund. Significant damage — broken deck boards, cracked frame, bent runners — may result in a damage fee or deposit forfeiture. The threshold for what counts as acceptable wear varies by IGPS location and contract terms.

If a pallet is damaged during your use, you have the option to report it to IGPS before returning it. Some contracts allow you to dispute damage charges if you can show the damage occurred before you received the pallet. Keep photos or documentation if you suspect a pallet arrived damaged. IGPS will investigate and may waive the fee if the damage is confirmed to have been pre-existing.

IGPS versus owning pallets: the trade-offs

Buying pallets requires upfront capital — a new plastic pallet costs $12 to $25, and wooden pallets cost $8 to $15. You also need storage space, maintenance labour, and a plan for disposal or recycling when pallets reach the end of their life. Over five years, the total cost of ownership can be substantial for large fleets.

IGPS eliminates ownership costs but introduces per-trip expenses. If you use a pallet once and it sits idle for months, you've paid the rental fee but gained no value. IGPS works best when pallets move frequently and don't stay in your possession long. It also works well if your pallet needs fluctuate — you can scale up or down without buying or selling inventory.

One trade-off is control. With owned pallets, you decide when to repair, clean, or retire them. With IGPS, you follow the network's standards. If you have custom pallet requirements — specific dimensions, weight capacity, or branding — IGPS may not accommodate them. Owned pallets give you that flexibility; IGPS does not.

IGPS network coverage and availability

IGPS operates through regional partners and service providers. In North America, IGPS has thousands of locations across the United States, Canada, and Mexico. In Europe, coverage is strongest in Western Europe, with expanding presence in Central and Eastern Europe. Availability in Asia is growing but remains limited compared to North America and Europe.

Before committing to IGPS, check whether the network covers your shipping lanes. If you ship primarily between two regions with dense IGPS coverage, the system works well. If you ship to remote areas or internationally to countries outside the IGPS network, you may need to use owned pallets for those routes or combine IGPS with other pallet solutions.

IGPS availability also depends on demand. During peak shipping seasons, pallet availability can tighten and rental rates may increase. If you need pallets urgently during high-demand periods, IGPS may not have stock at your location. Planning ahead and maintaining a contract with IGPS helps find pallet access during busy times.

How IGPS tracking and accountability work

Every IGPS pallet has a unique barcode or RFID tag. When you receive a pallet, the barcode is scanned and linked to your account. When you return it, the barcode is scanned again and the pallet is removed from your account. This electronic tracking means IGPS knows where every pallet is in the network at any given time.

If a pallet is not returned within an agreed timeframe, IGPS will charge you for the unreturned pallet. The charge is typically the deposit plus a rental fee for the extended holding period. If you lose track of a pallet or it's stolen, you're responsible for the full replacement cost. This accountability system keeps pallets moving through the network and discourages hoarding.

Some IGPS contracts include a "pallet shortage" clause. If you consistently fail to return pallets on time or lose pallets, IGPS may suspend your account or require a higher deposit. This protects the network's ability to serve all users and keeps rental rates stable for everyone.

Frequently Asked Questions

Can I use IGPS pallets for international shipments?

IGPS pallets can cross borders within regions where IGPS operates — for example, between the United States and Canada, or within the European network. For shipments outside these regions, you'll need to return the pallet at a border location or use a different pallet solution. Check with your IGPS provider about cross-border policies for your specific route.

What happens if I damage an IGPS pallet and can't afford the damage fee?

Damage fees are part of the IGPS rental agreement, and you're responsible for them. If the damage is minor and within acceptable wear, there may be no fee. If it's significant, you'll owe the fee. Disputing a charge requires documentation — photos, witness statements, or proof the pallet arrived damaged. Contact IGPS customer service to file a dispute if you believe the charge is unfair.

Is IGPS cheaper than buying pallets if I only ship a few times a year?

Probably not. If you ship fewer than 20 pallets per year, the per-trip rental fees will likely exceed the cost of buying and maintaining a small pallet inventory. IGPS is most cost-effective for businesses with consistent, frequent shipping. For sporadic shippers, owning pallets or using a local pallet pool may be more economical.

Can I mix IGPS pallets with my own pallets in the same shipment?

Yes, you can use IGPS pallets and owned pallets together. However, you must track them separately and return IGPS pallets to IGPS locations. Mixing them doesn't reduce costs — you still pay the rental fee for IGPS pallets and bear the ownership cost for your own. Some shippers do this during peak seasons when IGPS availability is tight.

What if an IGPS pallet is lost in transit?

If a pallet is lost during shipment, you're responsible for the replacement cost. Report the loss to IGPS and your carrier when ready. Your carrier's insurance may cover the loss, depending on your shipping contract. IGPS will charge your account for the unreturned pallet unless the carrier or shipper assumes liability. Always document the condition of pallets when you hand them off to a carrier.