Pallet Grades Explained: #1, #2 and Remanufactured

Warehouse aisles filled with banded pallets of knocked-down corrugated bulk boxes — Banded bundles of knocked-down containers sorted by footprint and height.

What the grades mean

Recycled pallet grading is less standardised than corrugated grading, which is precisely why it is worth being explicit on a purchase order. The common language runs roughly as follows.

Grade A / #1: all original boards, no plugs or companion stringers, square, clean, rackable.
Grade B / #2: up to about three repaired or replaced boards, may include a companion stringer, structurally sound, cosmetically used.
Remanufactured: built from salvaged components to a standard size. Serviceable, usually heavier, variable in deck gap.
Scrap: structurally finished — chipped for mulch or boiler fuel, not sold as a pallet.

Why it matters more than people assume

A corrugated container transmits its stacking load into the pallet deck at the four corners. If a deck board under a corner is cracked, replaced with a thinner board, or missing, that corner has no support and the container begins to fail from the bottom.

A common sight on receiving: a container with damage at the bottom score line and nothing wrong anywhere else. That is a pallet failure wearing a corrugated costume.

The nail problem

Repaired pallets frequently carry nails that stand slightly proud of the deck. Those nails cut liners, snag stretch film and scratch product.

A nail-flush check takes seconds: run a gloved palm across the top deck. It is worth adding to receiving wherever liners are in use.

Export, plastic and presswood, briefly

ISPM-15 heat-treated pallets are required for wood packaging crossing borders, with a legible stamp that survives handling — and a repair that replaces the stamped member voids compliance.

Nestable plastic pallets suit wash-down and food environments and nest to save return freight, at a significantly higher unit cost. Presswood pallets are light, nestable and cheap, and are best thought of as one-way: they do not take repeated racking well.

Matching the pallet to the container

Footprint must match exactly. Overhang removes corner support, and corner support is where the container's stacking strength lives.

Grade should match the application: #1 under anything stacked or racked, #2 for floor-level staging, remanufactured for one-way outbound where the pallet is not coming back.

And buy them on the same quote. The most common reason these two specifications drift apart is that they arrive from different suppliers on different schedules.

Takeaway: Put #1 under anything stacked. Everything else is a false economy measured in damage claims.

Reference

The tables this post refers to

Construction reference for the figures discussed above.

Construction, thickness and typical working capacity
Construction	Thickness	Typical max weight	Stacking	Typical use
Single wall C	5/32" (4.0 mm)	65 lb	Not for bulk	Lids, layer pads, dividers
Double wall BC	9/32" (7.1 mm)	900 – 1,200 lb	1 high loaded	General bulk under 1,200 lb
Double wall CC	5/16" (7.9 mm)	1,000 – 1,300 lb	1 high loaded	Slightly better cushioning than BC
Triple wall BCC	7/16" (11.1 mm)	2,200 – 2,500 lb	2 high loaded	The bulk workhorse
Triple wall ACC	1/2" (12.7 mm)	2,400 – 2,700 lb	2 high loaded	Dense product with cushioning need
Five wall AAC	5/8" (15.9 mm)	3,000 lb+	3 high, matched pallets	Castings, stampings, export

FAQ

Common questions on this subject

Short answers to common questions. If yours is not covered, ask it on the form and a partner supplier in our network can answer it with your quote.

All 33 answers

Can used containers be used for food?

It depends on your process and your requirements. With food, a liner is the contact surface, and container origin matters. Check current regulations and your customer's specification, and say what you need on the form.

What happens to boxes that fail grading?

Boxes that cannot be reused are usually baled and recycled as Old Corrugated Containers (OCC), which is one of the most widely recycled packaging materials.

Can I get pallets and liners too?

Yes. Recycled, export, plastic and presswood pallets, plus lids, caps, liners, corner boards, slip sheets and strapping, can be requested on the same form so they arrive with your boxes.

Are used containers safe for food handling?

The board is not the food-contact surface; a liner is. Whether a used container suits your food process depends on its history and your own requirements, so check current regulations and your customer's specification, and say so on the form.

Can you take old wooden crates or plastic totes?

Wooden crates and pallets can often go through a pallet recycler. Plastic totes are usually better sold to a plastics recycler. Describe what you have on the form and we will try to match it.

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