01
Relying on the supplier's grade name
There is no authority defining Grade A. Each yard writes its own, and there is constant commercial pressure to loosen it.
FixWrite numeric limits into the PO and state that supplier grade names do not govern.
01The vocabulary, decoded
| Term | Usually means | Watch for |
|---|---|---|
| Grade A / #1 | No companion stringers, ≤2 replaced boards | Some yards allow 1 companion and still call it A |
| Premium A / A-clean | Grade A plus a cosmetic screen | Almost always a genuine upgrade; costs $1–2 more |
| Grade B / #2 | Companion stringers allowed, more repairs | The widest definition in the industry — pin it down |
| Grade C | Structurally sound, cosmetically poor | Sometimes used to mean 'anything that stands up' |
| Combo / A-B mix | A stated ratio, e.g. 70/30 | Get the ratio in writing or you will get 30/70 |
| Core | Unrepaired, as-collected | Not a grade — it is raw material |
| Remanufactured | Rebuilt from recovered boards | Quality varies enormously; ask about the board source |
The reason the vocabulary is loose is structural: grading is a labour cost. A yard that grades tightly sells fewer A-grade pallets from the same intake, so there is a constant commercial pull toward loosening definitions. The counter to that is a written spec with numbers in it.
02The four criteria that decide a grade
1. Companion stringers
A companion is a second stringer nailed alongside a cracked one. It restores strength but adds 3–5 lb, changes the notch geometry slightly, and is visible. Grade A means none. This is the single biggest differentiator between A and B.
2. Replaced deck boards
Replacements are fine structurally — often better than the original. The count matters because it correlates with how much abuse the pallet has taken overall. Grade A: two maximum. Grade B: five.
3. Plugs and mend plates
A plug fills a broken notch; a mend plate spans a split. Both are legitimate repairs. Both indicate a stringer that has already failed once. Grade A: one plug maximum, no plates.
4. Squareness
Measured corner to corner diagonally. A pallet more than an inch out of square will not stack cleanly, will not sit properly on a rack beam, and will jam an automated line. It is the criterion buyers check least and suffer from most.
03Writing a grade spec that gets enforced
Here is language that works, because every clause is measurable and therefore arguable at the gate:
- Grade: A as defined below. Supplier grade names do not govern.
- Companion stringers: zero permitted.
- Replaced top deck boards: two maximum, none in a lead position.
- Plugs: one maximum. Mend plates: zero.
- Diagonal variance: 0.5 in maximum.
- Protruding fasteners: zero, top or bottom face.
- Broken, split or missing boards: zero.
- Inspection: buyer may sample 10 units per 500 and reject the load if more than 2% fail.
That last clause is what gives the rest teeth. A spec without an inspection and rejection protocol is a wish list.
04Matching grade to application
| Application | Minimum grade | Reason |
|---|---|---|
| Retail-facing display | A-clean | The pallet is packaging at that point |
| Racked storage over 1,800 lb | A | Edge-supported failure risk |
| Racked storage under 1,800 lb | B | Adequate margin |
| Automated conveyance | A | Dimensional tolerance and no snag points |
| General LTL freight | B | Best cost per trip |
| Floor-stacked storage | B or C | Nothing spans, load is fully supported |
| Scrap and yard movements | C | Structure only, appearance irrelevant |
| Export with heat treatment | A or B | Re-treatment cost argues for durability |
By the numbers
The figures worth remembering
Four numbers that decide most of what follows on this page.
- Federal, ANSI or ISO grading standards that exist
- 0Federal, ANSI or ISO grading standards that exist
- Time a grader spends assessing one pallet
- ~4 secTime a grader spends assessing one pallet
- Criteria that actually decide a grade
- 4Criteria that actually decide a grade
- Sensible rejection threshold in a purchase order
- 2%Sensible rejection threshold in a purchase order
Rules of thumb
Carry these in your head
- 01The only reliable grade is the one written into your purchase order.
- 02A spec without a rejection protocol is a wish list.
- 03Grade B repaired properly is not a safety compromise — it is a capacity choice.
- 04Never rack Grade C.
Before you order
The decisions we will ask you to make
A quote turnaround is limited by how many follow-up questions we have to ask. Working through this list removes nearly all of them.
- 01
Companion stringers
State a number. Zero for Grade A. This is the single biggest differentiator.
- 02
Replaced deck boards
Two maximum for Grade A, and none in a lead position.
- 03
Plugs and mend plates
One plug maximum for Grade A, zero plates.
- 04
Squareness
0.5 in diagonal variance for A, 0.75 for B. Almost nobody specifies this and it is what jams automated lines.
- 05
Protruding fasteners
Zero on either face. A safety clause, not a quality one.
- 06
Inspection protocol
Ten units per five hundred, reject above 2% failure. Without this clause the rest is a wish list.
What goes wrong
Expensive mistakes, and the fix for each
Every one of these turns up in ordinary purchase orders. All of them cost multiples of whatever they appeared to save.
02
Accepting a combo without a ratio
'A/B mix' with no stated ratio reliably arrives as more B than you expected.
FixPut the ratio in writing — 70/30 means 70/30.
03
Never checking squareness
It takes five seconds with a tape and it is the criterion buyers check least and suffer from most.
FixMeasure both diagonals on ten random pallets from every inbound load.
Side by side
Trade vocabulary, decoded
| Term | Usually means | Watch for |
|---|---|---|
| Grade A / #1 | No companions, ≤2 replaced boards | Some yards allow one companion and still call it A |
| Premium A / A-clean | Grade A plus a cosmetic screen | A genuine upgrade; costs $1–2 more |
| Grade B / #2 | Companions allowed, more repairs | The widest definition in the industry |
| Grade C | Sound but cosmetically poor | Sometimes means 'anything that stands up' |
| Combo / A-B mix | A stated ratio | Get the ratio in writing |
| Core | Unrepaired, as collected | Not a grade — it is raw material |
| Remanufactured | Rebuilt from recovered boards | Ask about the board source |
Against our interest
When this is the wrong answer
We would rather lose the order than sell you the wrong thing. These are the situations where this page is not what you need.
- 01
Assuming grade transfers between suppliers
There is no authority defining Grade A. Two yards can produce visibly different pallets from identical intake and both be honest.
- 02
Buying the highest grade by default
Floor-stacked storage does not need Grade A. You would be paying $2–4 per unit for the absence of companion stringers that nothing in your operation cares about.
- 03
Grading as a substitute for capacity design
Grade correlates with capacity but does not determine it. Construction, board thickness and stringer count do.
What moves the price
Cost drivers, and roughly how much each one is worth
A quote is not a list price with a discount applied. It is these variables added up, which is why two quotes for nominally the same thing can differ so widely.
| Driver | What it is | Rough effect |
|---|---|---|
| Sorting labour | Grading tightly means rejecting more from the same intake. That yield loss is the cost. | $2–4 between B and A |
| Appearance screening | A cosmetic pass on top of the structural sort, for retail and food receivers. | +$1.40 |
| Repair intensity | Grade A permits fewer repairs, so more pallets get dismantled instead. | Reduces sellable yield |
| Inspection and rejection protocol | A supplier held to a sampling clause has to grade tighter than one who is not. | Usually pays for itself |
Due diligence
Questions to ask any supplier
Us included. The answers tell you a great deal, and so does how quickly they arrive — a yard that has these documents ready is a yard that has thought about them.
- 01
“Can I have your grade criteria as a document, with numbers?”
- 02
“Do supplier grade names govern, or does my written specification?”
- 03
“Who grades — one person, or two at different points?”
- 04
“What sampling and rejection protocol will you accept in the purchase order?”
- 05
“If I specify a combo, what ratio is guaranteed?”
- 06
“How do you measure squareness, and to what tolerance?”
The rulebook
Standards and authorities that actually apply
Plenty of pallet marketing invokes standards loosely. These are the real documents behind this subject, and what each one does and does not cover.
- No grading standard exists
There is no federal, ANSI or ISO standard defining recycled pallet grades in the United States. Trade bodies publish guidance; nothing is enforced by an outside authority.
This is why the criteria belong in your purchase order rather than in a supplier's brochure.
- ANSI MH1
Does define the component vocabulary — stringer, deck board, notch, wing — so at least the words mean something fixed.
- ISO 8611
Provides test methods for measuring what a given pallet actually carries, which is the objective basis grade names only approximate.
- Our published criteria
Numeric limits on companion stringers, replaced boards, plugs and diagonal variance, published so customers can hold us to them.
Vocabulary
The terms used on this page
Defined the way the trade uses them, not the way a dictionary would.
- Grade A
- Our top recycled tier: no companion stringers, two or fewer replaced deck boards, one plug maximum, squareness within 0.5 inch.
- Grade B
- Companion stringers permitted, up to five replaced boards, up to three plugs, squareness within 0.75 inch. The most commonly traded recycled grade.
- Grade C
- Structurally sound but cosmetically rough. Suitable for floor-stacked storage and one-way freight; never for racking.
- Companion stringeralso: Sister stringer
- A second stringer nailed alongside a cracked original during repair. Structurally sound, adds 3–5 lb, and disqualifies a pallet from Grade A.
- Plug
- A wooden insert fitted into a broken notch to restore stringer material. One is permitted in Grade A; three in Grade B.
- Mend plate
- A metal plate fastened across a split stringer. A repair of last resort; disqualifies a pallet from Grade A and usually from Grade B.
- Core
- An as-collected used pallet — unsorted, unrepaired and ungraded. Raw material rather than a product, and priced accordingly.
- A-clean
- A Grade A structural sort with an added appearance screen — no stain, mould shadow, paint or raised splinters on the top deck. Costs roughly $1.40 more per pallet and eliminates most retail rejections.
- Remanufactured pallet
- A pallet rebuilt from recovered components, often to a different size than the original. Distinct from a repaired pallet.
From the journal
Longer reading on this subject
Written by the people who grade, repair and haul the wood — including the articles that argue against buying from us.
Grading5 min readMarcus Ellery
Publishing our grade criteria, and why that was uncomfortable
There was a real argument internally about this. Publishing a number means you have to hit it every time, including on the Friday when the load has to go.
Read
- grades
- transparency
- quality
Grading7 min readMarcus Ellery
Your supplier’s Grade A isn’t the same as ours — and nobody is lying
Two truckloads of Grade A 48x40 from two suppliers can look like different products. Neither yard is being dishonest. The problem is that nobody outside your purchase order defines the word.
Read
- grades
- quality
- purchasing
Grading6 min readMarcus Ellery
How we grade: ninety seconds inside the sort line
Four seconds to sort, ninety seconds to repair, four seconds to check. Here is what happens in each of them, and why the last four seconds are the most important.
Read
- grading
- operations
- quality
Questions
Answers to what buyers actually ask
Straight answers, including the ones that cost us the sale.
Is there an official pallet grading standard?
No. There is no federal, ANSI or ISO grading standard for recycled pallets in the United States. Trade bodies publish guidance, individual yards publish criteria, and buyers write specs — but nothing is enforced by an outside authority. That is exactly why your purchase order language matters.
What is the difference between Grade A and #1?
In most yards, nothing — they are alternative names for the same tier. Some suppliers use #1 to describe a slightly looser standard that allows one companion stringer. Ask for the written criteria rather than relying on the label.
Are Grade B pallets safe?
Yes, within their range. A properly repaired Grade B pallet handles 2,000–2,500 lb dynamically and 1,200–1,800 lb racked. It is not a safety compromise; it is a capacity choice. The unsafe move is racking Grade C or assuming a grade you did not specify.
Why do two suppliers' Grade A pallets look so different?
Because each wrote their own definition, and grading tightly costs money. A yard that sorts by machine and one that sorts by hand will produce very different 'Grade A' pallets from identical intake. Publish your own criteria and inspect against them.
Should I specify a grade or a list of criteria?
Criteria, every time. Because grades are supplier-defined rather than standardised, Grade A only means something once both sides have written down what it permits: companion stringers, replaced boards, staining, moisture. We publish ours precisely so the label is checkable rather than decorative.