Pallet Exchange System – what is it?
Pallet Exchange System is a logistics solution in which the parties involved in transporting goods (shipper, carrier, consignee) exchange pallets at the time of delivery, instead of issuing them as separate cost items or returning them later.
In practice, this means that the supplier transfers the goods on pallets to the consignee, and the consignee gives back an equal number of empty standard pallets in exchange. This ensures the continuous circulation of pallets in the system, without the need to store them, invoice them or incur additional costs for transport packaging.
Why is this important?
- Transport cost optimization: eliminates the need to repurchase or transport empty pallets back to the shipper.
- Logistical efficiency: reduces unloading and loading times, since the exchange takes place at the time of delivery.
- Sustainability: promotes pallet reuse and waste reduction, supporting a closed-loop economy.
- Process standardization: facilitates cooperation between companies operating in different markets, especially in international trade.
- Tracking pallet flow: with modern electronic systems (e.g., EPAL Exchange, CHEP, LPR) it is possible to monitor pallet flow in real time.
What to pay attention to?
- Standards compliance: in Europe, EPAL (EUR) pallets are most commonly used, and must meet certain quality standards.
- Technical condition of pallets: pallets to be exchanged must be in good condition, without damage, according to the rules of the system.
- Documentation: the exchange of pallets should be recorded in the transport documents (CMR, confirmation of receipt).
- Settlement between parties: if pallets are not exchanged, financial compensation or records in the electronic system are used.
- International differences: some countries have different systems (e.g., CHEP Pooling System or LPR), so it is important to agree on rules before shipment.
