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Pallet pooling: the CHEP and Loscam pallet rental model

June 13, 2026 — Lê Văn Thăng

What pallet pooling is, the CHEP/Loscam shared-rental model, benefits versus buying, pooling models, and when renting beats owning pallets.

Reviewed and updated by ICD - Week 24/2026

Pallet pooling is a model of renting and circulating shared pallets within a network, instead of each company buying and managing its own. Companies rent standardised pallets (most commonly CHEP and Loscam), pay for time in use, and the provider handles all collection, inspection and repair - turning pallets into a service rather than an asset to own.

How pooling works

Pallets move with the goods: a manufacturer rents pallets, loads them and ships to a distributor or retailer; at each point, responsibility transfers to the receiver on a user-pays basis. When empty, the provider collects them to a service centre for inspection and reconditioning before the next cycle. Companies track their pallet balance through the provider’s online system.

Benefits of pallet pooling

Benefit Meaning
No capital investment Pay only rental, no buying and stocking pallets
Consistent quality Pallets inspected and repaired to standard, fit for automation
No repair or retrieval worry The provider manages the whole pallet lifecycle
Scales with demand Hire more at peaks, return them in low season
Sustainable A circular reuse model that cuts wood use and emissions

Pooling models

Static pooling: hire and de-hire pallets flexibly as operations need. Exchange (closed-loop) pooling: circulate pallets between factories and warehouses or 3PLs in a closed loop. Modern pooling: pallets travel the full chain from factory to retail shelf with minimal manual handling. Companies pick a model based on how far the pool reaches across the supply chain.

Pooling or buying pallets outright?

Pooling suits large supply chains needing uniform pallet quality and wanting to avoid managing pallet assets; the downsides are long-term rental fees and penalties for lost pallets (one retailer was fined millions for failing to return enough). Buying suits internal-loop use, long ownership and controllable turnover - a one-off cost with no provider dependence. ICD offers both outright pallet sales and a rental service so businesses can choose by their cost model.

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Frequently asked questions

How is pooling different from buying pallets?

Pooling rents and circulates shared pallets on a pay-per-use basis without ownership; buying means owning pallets at a one-off cost and managing their lifecycle yourself.

What are CHEP and Loscam?

They are the two largest pallet-pooling providers; they rent standardised pallets on a share-and-reuse model and handle collection and repair.

When should I pool instead of buy?

For large supply chains needing uniform quality and no asset management; for internal-loop, long-term use, buying outright is usually cheaper.

Are there penalties for losing rented pallets?

Yes. Pooling charges a compensation fee per lost pallet, so tight balance tracking is needed to avoid large extra costs.

Contact ICD Vietnam

ICD Vietnam Industrial Manufacturing Co., Ltd - pallets, plastic crates, stretch film, forklifts and packaging solutions.

Hotline: 0983 797 186 / 090 345 9186
Email: sales@icdvietnam.com.vn | Zalo: Chat on Zalo

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