In road freight operations, pallet exchanges often create inefficiencies and disruptions across the supply chain in Europe. Typical problems include overly strict acceptance rules at unloading sites, limited availability of suitable return units, absence of signed confirmation documents, and the return of incorrect or incompatible pallet types.
Stricter Acceptance Criteria
Standards like the EUR/EPAL exclude visible damage like broken boards or missing nails but allow for a certain level of wear such as discoloration, superficial splinters, or surface abrasions. However, some consignees adopt stricter internal guidelines, especially when slight deteriorations or edge damage are seen as a risk factor for malfunctioning conveyor belts or are causing instability in high stacking. Thus, they may reject pallets with minor imperfections which puts the driver in a position where they either have to negotiate on the spot or return with the unreplaced pallets.
Pallet Shortages
Receivers may not have enough empty pallets available for exchange for a number of reasons. Some units may be wet, dirty, or otherwise unfit for return. Wet pallets, in particular, can weaken structurally or encourage mold growth which makes them unsafe for handling or improper for storage. Likewise, units stained with oils, chemicals, or organic residue pose contamination risks and may be withheld, as they would likely be rejected by future recipients. Additionally, when pallets are structurally damaged, receivers may take them out of circulation but have no process or budget in place for immediate repair.
Beyond cleanliness or damage, pallets may also be stored in inaccessible areas or distant parts of the facility which complicates their retrieval. Moreover, in high-density environments empty units are frequently placed behind loaded goods, distributed across multiple storage zones, or stacked in corners which limits the use of forklifts or pallet jacks.
In such cases, the forwarder may need to initiate recovery trips for pallet shipping or arrange later returns which increases transport costs and disrupts planning.
Lack of Signed Documentation
When parties sign a pallet exchange document, there is proof of how many units have been received, accepted, or rejected. However, in many cases, the consignee’s staff responsible for unloading do not have the authority to sign such documents. Time pressure also plays a role, as drivers may be instructed to leave without delay, especially at high-volume sites where multiple vehicles are processed in quick succession. As a result, the exchange often goes undocumented, and forwarders may have difficulties proving ownership of the number of pallets they have delivered. The problem becomes more complex when exchanges are settled later through cumulative balances or periodic reconciliation as missing units cannot be traced back to a specific transaction.
Non-Compliant Pallets
Some customers return pallets that do not match the specifications required by the original shipper. For example, instead of returning EUR-pallets, some consignees provide white pallets which are non-standard, privately owned, or inconsistent in size and quality. Others may return disposable one-way pallets, block units with different dimensions or chemically treated pallets that are unsuitable for reuse in certain industries. Since these non-compliant units hold little or no resale or reuse value, they are treated as losses, and the forwarder must either recover the correct units later or charge the shipper or consignee.