Not all used pallets are created equal. Our grading system helps you choose the right quality level for your application, balancing performance, appearance, and cost. Here is everything you need to know about pallet grades A, B, and C.
Highest quality recycled pallets
Per pallet for standard 48x40 GMA. Price varies with order volume, lumber market conditions, and specific size requirements.
Volume pricing: Orders of 200+ pallets receive discounted per-unit pricing. Contact us for a custom quote based on your volume.
When inspecting a Grade A pallet, look for these visual cues:
Best value for most applications
Per pallet for standard 48x40 GMA. This is the sweet spot for most businesses — strong performance at the best price point. Grade B pallets are our most popular product.
Best value: Grade B delivers roughly 95% of the performance of Grade A at 40-60% of the cost of a new pallet.
When inspecting a Grade B pallet, you will notice:
Maximum savings for basic needs
Per pallet for standard 48x40 GMA. The most economical option for businesses where appearance is not a concern. Ideal for high-volume, one-way shipments where cost per pallet is the deciding factor.
Maximum savings: Up to 75% less than new pallets. For a business shipping 500 pallets/month on one-way trips, Grade C can save over $5,000/month compared to new pallets.
Grade C pallets have a well-used appearance:
Compare all three grades side by side to find the right fit for your needs.
| Feature | Grade A | Grade B | Grade C |
|---|---|---|---|
| Appearance | Like new | Light wear | Visible wear |
| Repairs | None | 1-2 boards | Multiple boards |
| Structural Integrity | Excellent | Excellent | Good |
| Load Capacity | Full rated | Full rated | Full rated |
| Automation Compatible | Yes | Varies | No |
| Export Suitable | Yes | Yes | Not recommended |
| Price (48x40) | $8-$14 | $5-$9 | $3-$6 |
| vs. New Pallet Savings | 30-45% | 50-65% | 65-80% |
| Recommended Use | Export, automated, retail | General warehouse, domestic | One-way, internal, DIY |
Our grading process is methodical and consistent. Every pallet that enters our facility goes through the same multi-point inspection before receiving a grade. Here is exactly what our inspectors evaluate.
Inspectors check all three stringers (or blocks) for cracks, splits, and notch damage. A stringer crack longer than 6 inches or one that extends through the full width of the stringer automatically drops the pallet to Grade C or below. Hairline surface cracks under 3 inches are acceptable for Grade B.
Every top and bottom deck board is evaluated for cracks, breaks, missing sections, and excessive wear. A Grade A pallet has all original boards intact with no visible damage. Grade B allows 1-2 replacement boards. Grade C permits multiple replacements as long as all boards are structurally sound.
Protruding nails are a safety hazard and an automatic grade reduction. Grade A pallets have all nails flush with the surface. Grade B allows slightly raised nails that do not extend more than 1/8 inch. Any pallet with dangerously protruding nails is repaired before grading or rejected.
Pallets are checked for chemical spills, paint, grease, mold, pest damage, and strong odors. Any significant contamination disqualifies the pallet from resale and routes it to material reclamation. Light surface staining from normal use is acceptable for Grade B and C.
Pallets are measured to ensure they meet their stated size specification within tolerance. A 48x40 pallet must measure within 1/2 inch of those dimensions. Warped or twisted pallets that cannot sit flat on a surface are downgraded or rejected, as they create instability in stacking and racking.
Random samples from each grade batch are tested for load-bearing capacity using our weighted test rig. This confirms that repaired pallets maintain the rated capacity for their grade. Any pallet that fails the load test is re-inspected and either repaired or reclassified.
Here is what each grade actually looks like in practice, described in enough detail that you could identify them yourself in a pallet yard.
Pick up a Grade A pallet and it feels solid and balanced. The wood has a relatively uniform honey-to-light-brown color across all boards. Run your hand across the top deck and the surface is smooth — no splinters catch your fingers, no nail heads bump under your palm. Look at the stringers from the side: they are clean, straight, with no visible cracks or notch damage. The bottom deck boards are evenly spaced and show minimal scuffing. If you flip the pallet over, the underside looks as clean as the top. There are no ink stamps from previous use, no forklift gouges on the stringers, no signs that this pallet has been through a rough cycle. It looks like it just left the factory — but it is recycled. That is the Grade A standard.
A Grade B pallet tells a story. You can see it has been used — there is a subtle patina of wear across the top deck, maybe some light gray weathering on a board or two. Look closely and you might spot one replacement board: it is a slightly different shade, maybe a bit newer-looking than its neighbors. The nails are driven in but one or two might be slightly raised — not enough to snag anything, just enough to feel under your fingertips. The stringers show minor forklift contact marks — shallow scuffs and scrapes where fork tines have slid against the wood over multiple handling cycles. There might be a faded ink stamp or a remnant of a shipping label. But pick it up, set it on its edge, and it feels just as solid as a Grade A. The structure is completely sound. This is a working pallet with character.
A Grade C pallet is a veteran. It has been through multiple cycles and it shows. The top deck is a patchwork — two or three original boards in dark, weathered gray sit alongside newer replacement boards in lighter tones. The grain patterns vary because the replacement boards came from different lumber sources. Run your hand along the edges and you will feel roughness — some splintering where forklift tines have chewed at the corner boards over time. The stringers might have a sistered repair — a companion board bolted alongside a cracked stringer to restore structural integrity. There are dark stains from sitting in warehouse yards, ink stamps from three different previous users, and the whole pallet has a well-worn character. But here is the key: set a 2,000-pound load on it and it holds firm. The repairs are solid, the replacement boards are nailed properly, and the structure does its job. It is not pretty, but it works exactly as intended.
The right grade depends on how you plan to use the pallet. Here are common scenarios to help you decide.
Recommended: Grade A
Retailers like Walmart, Costco, and Target have strict pallet requirements. Grade A ensures compliance and avoids chargebacks for damaged or substandard pallets.
Recommended: Grade A or B
Racking puts concentrated stress on pallet stringers. Grade A is safest; Grade B works if the pallets are not entering automated systems.
Recommended: Grade B or C
For local deliveries where the pallet travels a short distance and will be returned, Grade B offers the best value. Grade C works for one-way trips.
Recommended: Grade A
Export pallets must look professional and meet ISPM-15 requirements. Grade A heat-treated pallets ensure your shipments pass customs without issue.
Recommended: Grade C
If you are never getting the pallet back, minimize cost with Grade C. It carries the same load — it just does not look as pretty doing it.
Recommended: Grade C
For upcycling into furniture, planters, or fencing, Grade C pallets are perfect. You will be sanding and refinishing anyway, so cosmetic condition does not matter.
Answer these questions in order to find the right pallet grade for your specific application. Start at the top and follow the path.
Proceed to Question 2. You need Grade A or new pallets.
Skip to Question 3. Grade B or C may work.
Recommendation: New pallets or Grade A only. Tight dimensional tolerances required.
Recommendation: Grade A. Clean appearance without automation-grade precision.
Proceed to Question 4. Invest in Grade A or B for longevity.
Recommendation: Grade C. Minimize cost on pallets you will not get back.
Recommendation: Grade A. Maximum structural integrity for heavy-duty use.
Recommendation: Grade B. Best value for standard warehouse operations.
Every grade has specific limits on acceptable damage. Here is exactly what our inspectors look for and the maximum allowances per grade.
| Damage Type | Grade A Tolerance | Grade B Tolerance | Grade C Tolerance |
|---|---|---|---|
| Broken deck boards | None allowed | 1-2 replaced boards | Up to 4 replaced boards |
| Stringer cracks | None visible | Hairline, under 3 inches | Up to 6 inches, not through-width |
| Missing boards | None | None (must be replaced) | None (must be replaced) |
| Protruding nails | None (all flush) | Max 1/8 inch above surface | Max 1/4 inch, no sharp points |
| Surface staining | Minimal, light only | Moderate acceptable | Heavy staining acceptable |
| Board warping | None | Max 1/4 inch deviation | Max 1/2 inch if load-bearing OK |
| Forklift damage | No visible marks | Minor scuffs acceptable | Moderate gouges if structural OK |
| Mold/mildew | None | Surface only, non-active | Surface only, non-active |
| Dimensional variance | +/- 1/4 inch | +/- 1/2 inch | +/- 3/4 inch |
| Chemical contamination | None -- rejected | None -- rejected | None -- rejected |
Any pallet with chemical contamination, active pest infestation, or structural failure under rated load is rejected from all grades and routed to material reclamation.
We stock all three grades in multiple sizes at our Albuquerque facility. Browse our used pallet inventory or contact us for a custom quote. We can also send samples so you can see and feel the quality before placing a bulk order.