Yard notes
Ninety seconds on the grading line
The whole economics of a pallet yard rest on a judgement made in about ninety seconds. Here is what is going through the grader's head.

Request a quote
Talk to the people who wrote this
Same form, same inbox. Technical questions get answered whether or not there is an order attached.
In short
A pallet grader turns each inbound core, checks the stringers along their length, inspects both notch shoulders, sights the deck for coverage and gaps, checks for protruding fasteners by hand, and looks for moisture and mold. The output is one of four routes: Grade A, Grade B, repair, or dismantle.
The whole sequence takes about ninety seconds, and it is the single most consequential judgement made in the yard.

Why daylight, and why it is not sentimental
We grade under natural light, and people assume it is a nice touch. It is not — it is a detection problem.
Overhead artificial light comes from a single direction and washes out the shadow that a hairline split casts. Under diffuse daylight the same split throws a visible line. A grader working under a shop lamp will miss cracks that the same grader catches outside.
The second reason is colour. Early mold on pallet wood is a grey-green tint that is genuinely difficult to distinguish from ordinary weathering under warm artificial light. In daylight it is obvious. Missing it means shipping a mold problem into a customer's food or pharmaceutical facility, which is the kind of mistake that ends a relationship.
The sequence, in order
1. Sight the stringers, both faces
The grader looks along the length of each stringer, the way you would sight along a plank for a bow. A split running with the grain shows as a dark line. Previous repairs — plugs, companions — are noted here, because either one caps the pallet at Grade B.
2. Check the four notch shoulders
The most common failure point, so it gets its own check. A crack radiating from the notch corner is the single most frequent reason a core drops out of Grade A.
3. Count and sight the top deck
Board count, gap consistency, and whether any board is split, cupped or missing. A grader does not measure — measuring every pallet would double the cost of the product. They compare against a reference pallet, and consistency between graders comes from working next to each other.
4. Flip and check the bottom deck
Bottom boards take fork strikes and floor impact. Missing bottom boards are common and often acceptable; a bottom board that is split *and* still attached is worse, because it will catch.
5. Hand check for protruding fasteners
Run a gloved hand across the deck. A nail standing a sixteenth of an inch proud will not be seen but will be felt, and it will shred a stretch wrap two states away.
6. Moisture and smell
Wet wood is heavier and sounds different when set down. Mold has a smell. Both are reasons to pull a pallet out of the recoverable stream entirely rather than route it to repair.
What the four routes mean commercially
- Grade A — original unrepaired stringers, seven or more deck boards, clean. The highest-value output and roughly 30% of intake.
- Grade B — repaired or slightly compromised but structurally sound. The workhorse, and the best value for most buyers.
- Repair — one fixable defect. Goes to the bay, comes back as Grade B.
- Dismantle — beyond economical repair. Recovered as component lumber and ground remainder.
The margin of the entire business sits in the accuracy of that split. Grade too generously and customers get pallets that fail. Grade too conservatively and you dismantle inventory that was worth five times its lumber value.
How graders get consistent
Not with a written rulebook, though we have one. With reference pallets and proximity.
Each grading position keeps physical reference examples of the borderline cases — the pallet that is just barely Grade A, the deck gap that is just barely too wide. Written specifications drift in interpretation; a physical object does not.
New graders work beside experienced ones for weeks, and we periodically pull a sample and re-grade it blind. If two graders disagree on more than a small fraction of a sample, the reference pallets get revisited. That is the whole quality system, and it works because the object is right there to argue about.
Takeaways
- Daylight grading is a detection requirement, not an aesthetic preference.
- Notch shoulders are the most common reason a core drops out of Grade A.
- Protruding fasteners are found by hand, not by eye.
- Consistency comes from physical reference pallets, not written specifications.
Questions
Asked and answered
How many pallets can one grader handle per hour?
An experienced grader handles several hundred an hour on standard footprints. Speed comes from pattern recognition rather than from skipping checks — the sequence is the same every time.
Why does a repaired pallet grade B rather than A?
Because a companion or plugged stringer restores most but not all of the original span strength. Grade A is defined by original, unrepaired stringers precisely so the distinction stays meaningful.
Written by
Dale Whitmer
Yard Manager
Runs the grading line and the repair bay. Has graded more pallets than he can estimate and still argues about deck coverage.
Disagree with something here? That is genuinely useful to us — several of these articles exist because a customer told us we had it wrong. Use the form at the top of the page or write to the yard directly.
Terms used here
Definitions live in one place so they cannot drift. Full list in the pallet glossary.
- Bottom deck
- The lower deck boards. May be full coverage, partial, or absent entirely on a skid.
- Core
- An unsorted used pallet as received from a generator, before grading. The raw material of a pallet yard.
- Deck board
- A horizontal board forming the load-bearing surface of a pallet.
- Grade A
- A used pallet with original unrepaired stringers, seven or more top deck boards and no significant damage. Also called #1.
- Grade B
- A used pallet that may have one repaired or companion stringer and replaced boards. Also called #2.
- Notch
- A cut in the lower edge of a stringer allowing fork entry from the side. Two per stringer on a GMA pallet.
- Plug
- A shaped insert repairing a damaged stringer end around the notch.
- Stringer
- A lengthwise structural member, typically 1⅜″ × 3½″, forming the spine of a stringer pallet.
Keep reading
Related notes
The anatomy of a repair decision
Repair too little and you destroy inventory. Repair too much and you ship pallets that fail. The line between is narrower than it looks.
Yard notesWhy we count on the ground
Almost every pallet count dispute we have ever seen was an honest mistake. That is exactly why the process has to be physical.
Yard notesMold on pallets: what it means and what it does not
Mold on a pallet is not a wood problem. It is a water problem that happens to be visible on wood.