The Complete Guide to Pallet Grading: What Grade A, B, and Combo Really Mean

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Brokers usually quote repaired pallets by grade (A, B or Combo), and the terms are not interchangeable. Grade indicates condition, structural history and suitable uses; the wrong grade can cause product damage, compliance problems or wasted money.

• 30–50%: typical savings vs. new with Grade A repaired
• 10–15+: additional trips a Grade A pallet can usually complete before repair
• Grade B: the most cost-effective option for industrial and high-volume warehouse use
• No single universal standard: definitions vary by supplier and region

Why Grading Matters

"Used" or "repaired" alone says little: a lightly used pallet from a controlled environment differs greatly from one with years of outdoor storage, forklift impacts and repeated stringer repairs. Grades give buyers and sellers a shared vocabulary. The U.S. has no mandatory national standard; the National Wooden Pallet and Container Association (NWPCA) provides guidelines, but definitions vary, so discuss grading criteria explicitly with your broker.

The Grade Breakdown

Grade A — Like-New Quality

Best for: Retail / Food / Distribution

What it means:

• Near-new condition, typically 1–2 prior use cycles
• All deck boards present, secure, and undamaged
• No broken, split, or missing boards
• Intact stringers with no companion stringers or stringer repairs
• No protruding nails or staples
• Clean, free of contamination, staining, or odor
• Dimensions within standard tolerances

What it allows:

• Minor cosmetic wear (scuffs, light marks, natural discoloration)
• Small knots, checks, or grain variations
• Minor board replacement with matching lumber, no structural impact
• Slight board-width variation within tolerances

Typical savings vs. new: 20–35%

Grade B — Structurally Sound, Visible Repairs

Best for: Industrial / Warehouse

What it means:

• More use cycles than Grade A, with visible wear
• One or two stringer repairs allowed (plugs, plates, or companion stringers)
• Top and bottom deck boards may have been replaced
• Deck configuration may not be perfectly uniform
• Structurally sound and load-rated for intended use
• No missing boards or safety-compromising damage

What it allows:

• Companion stringers beside a repaired or cracked original
• Surface staining, scuffing, and prior-use markings
• Mixed board widths within structural limits
• Slightly wider deck spacing than Grade A
• Minor splinters or edge wear

Typical savings vs. new: 40–55%

Combo — Mixed Grade A & B in a Single Order

Best for: Bulk / Non-Critical Use

What it means:

• One order contains both Grade A and Grade B
• Graded individually but not sorted by grade
• All structurally sound; Combo does not mean damaged
• Condition variation within an order is expected
• Usually the lowest per-unit cost for non-critical applications

Best used when:

• No appearance requirements apply
• Pallets are used internally, not customer-facing
• Cost per unit is the main driver in high-volume operations
• Condition consistency isn't critical
• No automated handling systems are involved

Typical savings vs. new: 45–60%

What Inspectors Actually Look At

Pallets pass through an inspection line where trained graders assign a grade or route the pallet to repair, re-grading or rejection.

Stringer Integrity

• Cracks, splits, or breaks
• Quality and presence of prior repairs (plugs, plates, companions)
• Number of stringer repairs (Grade A: none; Grade B: 1–2)
• Block damage on block-style pallets

Deck Board Condition

• All boards present and securely fastened
• No missing, split, or severely damaged boards
• Spacing within tolerances
• Replacement boards consistent with original specification

Overall Appearance

• Staining, mold, or chemical exposure
• Odors suggesting contamination
• Protruding nails, staples, or fastener heads
• Foreign material embedded in the wood

Structural Load Capacity

• Supports rated dynamic, static, and racking loads
• No damage to fork entry points or notches
• Sits flat without significant warp or twist
• Bottom deck strong enough for racking

Compliance Markings

• Legible ISPM-15 HT stamp for export pallets
• Debarking status where required
• No methyl bromide (MB) stamp where prohibited
• Heat treatment facility traceability

Dimensional Consistency

• Length and width within ±¼" of specification
• Height/thickness within ±⅛"
• Consistent enough for automated handling
• Fork entry openings meet minimum clearance

Matching Grade to Application

Key: ✓ Recommended · △ Conditional (verify with customer/auditor) · ✕ Not recommended

Navigating Supplier Variation

Grading is not uniform: a Southeast supplier may call Grade A what a Pacific Northwest supplier would call Grade B. Rigorous facilities produce more consistent results than informal visual checks. A broker who regularly sources from a facility can verify consistency and flag quality shifts.

Questions to Ask Your Pallet Supplier About Grading

• What are your Grade A criteria for stringer condition?
• Do you allow any companion stringers at Grade A?
• What is your deck board replacement policy, and do you use matching lumber?
• How do you handle borderline pallets?
• Are graders trained to a documented internal standard, and can buyers review it?

Thinking About Cost Per Use Cycle

Cost per use cycle is more useful than purchase price. Grade A costs more upfront but can often make 10–15 more trips; in returnable systems a higher grade can have a lower per-trip cost. For one-way shipments, Grade B or Combo is often more economical.

• Multi-trip/returnable: evaluate total cost of ownership; Grade A often wins per trip
• One-way/expendable: minimize unit cost; Grade B or Combo if structural requirements are met
• Automated handling lines: dimensional consistency matters; Grade A or new reduce jams and downtime
• Racked storage: load integrity is critical; Grade B acceptable if stringer condition is verified; Combo generally too variable

Work with a broker who has placed pallets in operations like yours, not a supplier focused on moving inventory.

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