What Do Pallet Grades Mean? A, B, and C Grades Explained for Buyers
Pallet grades tell you the condition and expected performance of a recycled pallet. Grade A pallets are in near-new condition with no broken boards and minimal wear. #2 pallets have been repaired and often show mismatched boards and added lumber. Cores are broken pallets that are still repairable. If you are buying recycled pallets in Chicago or the Midwest, these are the real terms you will hear.
Understanding what these grades mean in practice helps you buy the right pallet for the job and avoid paying for quality you do not need, or getting less than you expected.
Quick Comparison: Pallet Grades at a Glance
| Grade | Condition | Best For | Price |
|---|---|---|---|
| GRADE A | Near-new. No broken boards, minimal wear, dimensionally accurate. | Outbound customer shipments, food-adjacent, visible to end customer. | $$$ |
| #2 PALLET | Repaired. May have mismatched boards and a sistered stringer. Often heavier. | Internal moves, in-plant operations, applications where appearance does not matter. | $$ |
| CORE | Broken but repairable. Up to one broken stringer and four broken deck boards. | Sold to pallet recyclers for repair. Not for direct use as-is. | $ |
Grade A: Near-New Condition
A Grade A recycled pallet has been inspected and meets a near-new standard. All boards are intact, there are no broken or missing deck boards, stringers are solid, and the pallet meets standard dimensional specs. Nails are flush or close to it.
Grade A pallets are a good fit when appearance matters, such as outbound customer shipments, food-adjacent environments, or operations where pallets are visible to end customers. They cost more than #2 pallets, but less than new pallets.
#2 Pallets: Repaired and Functional
#2 pallets are recycled pallets that have been repaired. You will often see boards that are visibly different in color or wood type, because the repair used whatever lumber was available. That is normal and does not affect structural performance.
The most common repair is a sistered stringer, where an extra stringer is placed alongside a broken or cracked stringer and nailed in place. This adds strength back to the pallet, but it also adds weight. #2 pallets are often noticeably heavier than Grade A because of the added lumber.
#2 pallets are the workhorse of most Midwest warehouse operations. If the pallet stays in your building or gets used for internal moves where appearance does not matter, #2 is the right call. The price-to-performance ratio is strong, and availability is typically high in the Chicago market.
Cores: Broken but Repairable
A core is a broken pallet that still has enough good material to be worth repairing. In the Chicago area, the general threshold for a repairable core is one broken stringer and up to four broken deck boards. Beyond that, the pallet is firewood.
Cores are not pallets you would put into service as-is. They are sold to pallet recyclers who repair them and sell them as #2 pallets. If you are a buyer (not a recycler), cores are not what you want to order. But understanding the term helps when you are talking to suppliers, because it tells you how the recycled pallet supply chain works: cores come in broken, get repaired, and go out as #2 pallets.
Why Grading Matters When You Buy Recycled
Not every supplier grades pallets the same way, and not every region uses the same terms. When you are buying recycled pallets, ask your supplier what their grading criteria are specifically. A supplier with a documented, consistent grading process is far more predictable than one who eyeballs it.
If you have had bad experiences with recycled pallets in the past, inconsistent grading is often the reason. A supplier who grades carefully and stands behind their grade will deliver a different experience.
Frequently Asked Questions
Atlas Pallets & Packaging grades all recycled inventory before it ships. We are happy to walk you through what our grades mean and help you find the right fit for your operation across Chicagoland and the Midwest.
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