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Plastic Pallet Articles

What Is a Pallet? Definition, Types and Uses

June 6, 2026 — Lê Văn Thăng

A pallet explained - the flat structure that unitizes goods for forklift handling. Wood, plastic and paper types, IPPC/ISPM-15, Loscam pooling and key logistics terms.

Author: Le Van Thang, Director of ICD Vietnam.

When I first entered the logistics industry more than 15 years ago, I quickly realized that pallets are not just load boards. They are the ‘foundation’ of the entire modern supply chain, the basic unit that lets goods move around the globe. The wrong pallet can collapse an entire system.

QUICK ARTICLE SUMMARY

  • What is a pallet? A pallet (or load board) is a flat structure used to fix goods into a single unit, making loading, moving and storage by forklift easy and efficient.
  • What is a pallet used for? A pallet’s main role is to optimize logistics: protecting goods, saving warehouse space, speeding up loading and reducing labor cost.
  • Common pallet types: This article analyzes wooden pallets in detail (the most common, requiring IPPC standards for export), plastic pallets (durable, hygienic, no quarantine needed) and paper pallets (ultra-light, used for air freight).
  • Pallets in logistics & import-export: Explains industry terms such as “palletizing”, “palletized goods”, what the IPPC/ISPM-15 standard is, and rental services such as Loscam pallets.
  • Related terms: Clarifies what a pallet jack is and distinguishes “pallet” in logistics from other concepts such as a “pallet bed” or a “palette” in painting.

In the world of transport and warehousing, the pallet is so familiar it is almost invisible, yet its role is extremely important. Almost every product you use daily was placed on a pallet at some stage of the supply chain.

So what exactly is a pallet, what is it used for, and why is it indispensable in modern logistics? This article is a comprehensive guide answering all your questions.

1. What is a pallet? Definition and purpose

What is a pallet?

A pallet (or pallet board, colloquially) is a flat structure, usually made of wood, plastic or paper, designed so that goods can be placed on top and fixed into a solid unit. The pallet’s structure has slots or feet so the forks of a forklift or pallet jack can be inserted to lift the whole load easily.

ICD XU 2M 1111 blow-molded plastic pallet

What is a pallet used for?

The main purpose of a pallet is to “unitize” goods. Instead of handling each small carton separately, you palletize - that is, you stack many cartons on one pallet and stretch-wrap them. At this point, the whole large load is treated as a single pallet, delivering 4 main benefits:

  1. Efficient transport: increases the speed of loading goods onto trucks and containers by tens of times.
  2. Optimal storage: palletized goods can be stacked or placed on high racking systems, saving warehouse space.
  3. Goods protection: keeps goods off the ground, avoiding moisture, dust and reducing impact during transport.
  4. Lower labor cost: significantly reduces the workers needed for manual handling.

2. The most common pallet types

Depending on material, pallets fall into 3 main types:

What is a wooden pallet?

This is the most common pallet type in the world (over 90%) thanks to its low price and ease of production and repair.

  • Advantages: Cheap, good load capacity, high friction so goods slip less.
  • Disadvantages: Prone to mold and termites; heavy; can have wood splinters that pose a hazard.
  • Important note (What is an IPPC pallet?): When wooden pallets are used for export, they must comply with the ISPM-15 phytosanitary treatment standard of the International Plant Protection Convention (IPPC). The pallet must be fumigated or heat-treated and stamped with the IPPC mark to be cleared through customs.
ICD Vietnam wooden pallet

What is a plastic pallet?

The plastic pallet is the modern solution, increasingly preferred for its durability and hygiene.

  • Advantages: Very long lifespan, water-resistant, chemical-resistant, no termites, easy to clean, ISPM-15 quarantine exempt.
  • Disadvantages: Higher initial price than wooden pallets.
  • What is “pallet nhua” in English? It is “Plastic Pallet”.
ICD XU 2M 1210 single-piece double-deck blow-molded plastic pallet 1200x1000x150 mm

What is a paper pallet?

This is a pallet made from multi-layer pressed cardboard, usually used for special needs.

  • Advantages: Ultra-light (saving air-freight cost), eco-friendly, no fumigation needed.
  • Disadvantages: Lower load capacity and not durable in humid environments.
ICD Vietnam paper pallet
ICD Vietnam paper pallet

3. Pallets in Logistics and Import-Export

In this industry, a pallet is not only an object but also a unit of measure.

  • What unit is a pallet? When you receive a shipping quote, “the rate for 1 pallet” means the price to transport one fully packed load on a pallet.
  • What is a Loscam pallet? Loscam (along with CHEP) is the name of companies providing pallet rental on a “pooling” model. Instead of buying and managing pallets themselves, businesses can rent pallets from Loscam, use them, and return them at another point in the network. This is a very efficient logistics solution.
  • What is a Pallet Jack? A pallet jack is the English term for a hand pallet truck, an indispensable device in every warehouse for moving pallets over short distances.
Loscam Asia standard wooden pallet 1000x1200x156mm
Loscam Asia standard wooden pallet 1000x1200x156mm

4. Pallets in other fields

Beyond logistics, the word “pallet” is also used in other contexts:

  • What is a pallet bed? This is a DIY furniture trend using old wooden pallets to make bed frames, tables and chairs, creating a rustic, homely style.
  • What is a pallet in painting? This is a homophone with a different meaning. In painting, a “palette” (pronounced like “pallet”) is the tray on which artists mix paint.

Frequently Asked Questions (FAQ)

1. What are palletized goods?

Palletized goods are goods that have been stacked and secured on a pallet, ready to be lifted and transported as a single unit.

2. What is palletizing?

Palletizing is the process of stacking cartons and bags onto a pallet methodically, then usually using stretch film or straps to wrap them tightly into a stable unit.

3. Why must export wooden pallets carry an IPPC mark?

The IPPC mark confirms that the wooden pallet has been heat-treated or fumigated with Methyl Bromide per the ISPM-15 standard. This is intended to prevent the spread of pests and harmful insects between countries via wood transport.

References

  1. International Organization for Standardization (ISO), ISO 6780: Flat pallets for intercontinental materials handling.
  2. International Plant Protection Convention (IPPC), Regulation of wood packaging material in international trade (ISPM 15).
  3. Loscam, Pallet Pooling Services.

See also: what are plastic pallets used for | which material makes the best pallet


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