Why Pressed Wood Pallets Are Popular: Benefits, Specs and Honest Limits

Pressed wood pallets (also called plywood pallets or engineered wood pallets) are made from wood chips, sawdust or thin veneer layers compressed under high heat and pressure. Their biggest advantage for exporters: no fumigation required under ISPM 15, saving 15,000-25,000 VND per pallet in treatment costs and cutting 1-2 days from shipment preparation. Reference price: 80,000-200,000 VND per pallet depending on size and board type.

What is a pressed wood pallet? Two types the market confuses

A pressed wood pallet is manufactured from raw materials such as wood waste, sawdust and wood chips, or thin veneer sheets, compressed under 20-30 tonnes of pressure at 150-180 degrees Celsius with specialized adhesive resin. Because the raw material is processed at high industrial temperature, the IPPC classifies it as “processed wood material,” which is exempt from the phytosanitary treatment required by ISPM 15.

There are two main types that buyers often confuse. The first is the presswood pallet (chip board or particle board pallet), made from finely ground sawdust and wood chips mixed with thermosetting resin and moulded under high pressure. It has a smooth, uniform surface with no wood grain, and typically features 9 integral moulded legs. The second is the plywood pallet, made from thin veneer sheets stacked at right angles and bonded with adhesive. Plywood pallets retain visible wood grain, have a density of 600-700 kg per cubic metre, and are generally more durable than presswood pallets.

Both types share the most important advantage: no fumigation is needed for export. The raw material is heat-treated during production (bonded at 120-180 degrees Celsius), so the IPPC classifies both as processed wood, exempt from phytosanitary requirements.

Construction and manufacturing process

A pressed wood pallet has two main parts. The top deck is a flat pressed board, typically 9-15 mm thick, which supports the goods. The base structure is a set of support legs - either 9 integral moulded blocks (presswood) or 3 assembled plywood stringers (plywood pallet). A key detail: pressed wood pallets contain no nails or metal staples, eliminating the risk of loose fasteners damaging goods or injuring operators.

The manufacturing process involves four main stages. First, wood waste and chips are ground to a fine particle size, then kiln-dried to below 10% moisture. Second, the dried particles are blended with thermosetting resin (phenol formaldehyde or urea formaldehyde) for bonding. Third, the mixture is placed in a mould and compressed under 20-30 tonnes at 150-180 degrees Celsius. Finally, finished pallets are checked for dimensions and load capacity - they meet ISPM 15 standards directly from the factory with no additional fumigation step.

For plywood pallets, the process differs in that the raw material consists of thin veneer sheets roughly 1 mm thick, peeled from round logs. The veneer sheets are stacked cross-grain (always an odd number of layers: 3, 5, 7 or 9) and bonded under heat and pressure. The cross-grain structure gives plywood high dimensional stability and less warping than solid wood under normal conditions.

Honest assessment: advantages and real limitations

The pressed wood pallet has six clear advantages. First, no fumigation for export - the biggest benefit, saving both cost and lead time. Second, weight is 50-60% lighter than an equivalent solid wood pallet, reducing freight costs meaningfully. Third, purchase price is 30-50% lower than new acacia or pine wood pallets. Fourth, moisture content is only 6-8% (compared with 14-18% in kiln-dried solid wood), lowering the risk of goods being damaged by moisture. Fifth, the surface is flat and uniform, with no protruding splinters or uneven boards. Sixth, the pallets can nest when not in use, saving up to 66% of warehouse storage space.

There are four real limitations that many online articles underplay. First, poor water resistance - pressed wood pallets swell and deteriorate quickly if soaked or stored long-term in high-humidity environments above 85% RH. Second, lower load capacity than solid wood - presswood pallets typically handle 1,000-1,500 kg dynamic load, while solid acacia pallets of the same size carry 1,500-2,500 kg. Third, shorter service life - reusable 3-8 times compared with 20-30 times for solid wood pallets. Fourth, difficult to repair - when one section fails, the entire pallet usually needs replacing rather than swapping individual boards as with traditional wood pallets.

Pressed wood vs. solid wood vs. plastic pallet: comparison table

The simple decision rule: pressed wood pallets are best for exporting light goods one-way (no pallet return). Solid wood pallets are better for long-term storage and heavy goods that require frequent pallet reuse. If you export electronics, garments or footwear, pressed wood is the optimum choice. If you export heavy industrial machinery or construction materials, choose export-grade solid wood pallets that have been fumigated.

Industries that use pressed wood pallets most

Based on ICD Vietnam order data, four industry groups account for the majority of pressed wood pallet usage. Electronics and appliances represent the largest share at roughly 35% of orders - electronic products tend to be light yet high-value, requiring a clean pallet surface free from loose chips that could scratch packaging, combined with high export frequency where fumigation savings compound quickly.

Garments and footwear are the second largest group at about 25% - light goods packed in cartons on a pressed wood pallet are optimal on both cost and container space. Chemicals and pharmaceuticals also favour pressed wood because the surface is hygienic, free from insects and easy to clean. Finally, the construction sector uses pressed wood pallets as temporary formwork or site flooring, taking advantage of the low cost and disposable nature.

One fact few buyers know: after use, pressed wood pallets can be ground back into raw material for chipboard panels, wood pellets or organic fertiliser, completing a closed-loop cycle with a low environmental footprint.

Common sizes and 2026 price reference table

Prices are for reference and may vary with order volume, timing and board grade. Orders of 500 pallets or more receive a discount of 8-15%. ICD Vietnam also manufactures pressed wood pallets to custom dimensions. Compared with solid wood pallet prices, pressed wood pallets are typically 30-50% less expensive at the same size.

How to evaluate quality and store pressed wood pallets correctly

Not every pressed wood pallet on the market is equal in quality. Three quick checks before buying: press firmly in the centre of the deck board - it should feel solid with no flex or soft spots, which would indicate thin board or poor adhesive. Inspect all 9 legs and confirm they are equal in height with no cracks or chipped corners; place the pallet on a flat surface and rock it - a good pallet sits firmly without wobbling. Finally, ask the supplier for a certificate confirming the product meets ISPM 15 standards if the pallets will be used for export.

For storage, keep pressed wood pallets in a dry, ventilated area away from direct contact with water or damp ground. When stacking pallets in a warehouse, do not exceed 15 layers to avoid compressing and deforming the legs at the bottom. If pallets are found to have absorbed moisture, air-dry them before use. With proper storage, pressed wood pallets can be reused 5-8 times rather than the 3 times many buyers assume.

Three situations where pressed wood pallets are the wrong choice

Despite their benefits, there are three situations where pressed wood pallets should not be used. First, when goods exceed 1,500 kg per pallet - switch to solid acacia or reinforced hardwood pallets in this case. Second, when pallets will be used outdoors or in cold-store environments with frequent condensation - pressed wood swells and fails quickly under sustained moisture exposure. Third, when pallets need to be stored long-term (over 2 years) and moved repeatedly by a pallet truck throughout the day - the cumulative replacement cost of pressed wood pallets may exceed the upfront cost of solid wood pallets over that period.

A real case from ICD Vietnam’s records: a ceramic tile manufacturer in Bac Ninh switched to pressed wood pallets to cut costs. However, each pallet had to carry 2,500 kg of tiles and was moved by a pallet truck 5-6 times per day. The pressed wood pallets failed in under two weeks. After switching to double-faced solid acacia pallets with the right load capacity, the pallets performed reliably and lasted 3 years.

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