Quick answer: Timber pallets almost always have a lower purchase price, but plastic pallets usually have a lower total cost of ownership. Once you count repairs, replacements, product damage, export treatment, downtime and injury risk across the pallet’s whole service life, a durable Australian-made plastic pallet typically costs less per trip than timber. The cheapest pallet on the purchase order is not necessarily the cheapest pallet on the balance sheet.
Ozkor is an Australian manufacturer of ISO 9001-certified plastic pallets and bulk bins, supplying manufacturers and exporters including Woolworths, Nestlé, Blackmores, DHL Supply Chain, Capral, ResMed and Teys. This article explains how to compare timber and plastic pallets on true cost rather than sticker price.
Why do timber pallets look cheaper than they are?
A timber pallet has a low upfront unit price. That single number is what usually gets compared in a budget meeting, and on that number timber wins.
The problem is that the purchase price is only one line in the real cost of a pallet. The other costs are spread across other budgets, other teams and other quarters, so they rarely appear in the same comparison:
- Repairs and re-nailing over the pallet’s life
- Replacement when the pallet fails
- Product damaged by splinters, protruding nails or a collapsed board
- Export treatment (heat treatment or fumigation) to meet ISPM-15
- Line stoppages when a warped or broken pallet jams a conveyor or robotic system
- Manual handling injuries from heavy, inconsistent timber
- Disposal and waste
When those costs are added back in, the comparison changes.
What does “total cost of ownership” mean for a pallet?
Total cost of ownership (TCO) is the full cost of a pallet across its entire service life, divided by the number of trips or cycles it completes. It answers a more useful question than “what does one pallet cost?” — it answers “what does moving one load actually cost me?”
The formula is straightforward:
Cost per trip = (purchase price + lifetime running costs — residual/recycling value) ÷ total trips completed
A timber pallet with a low purchase price but a short life and high running costs can end up with a higher cost per trip than a plastic pallet that costs more upfront but lasts far longer.
Timber vs plastic pallets: cost comparison
| Cost factor | Timber pallet | Plastic pallet |
|---|---|---|
| Upfront unit price | Lower | Higher |
| Service life | Shorter; prone to breakage | Longer; engineered for repeated cycles |
| Repairs | Frequent (re-nailing, board replacement) | Rare; no nails or loose boards |
| Weight consistency | Varies with moisture | Consistent every unit |
| Automation compatibility | Dimensional variation causes jams | Uniform; suited to conveyors and AS/RS |
| Export (ISPM-15) | Requires heat treatment or fumigation | ISPM-15 exempt (no treatment required) |
| Hygiene | Porous; absorbs moisture and contaminants | Non-porous; washable |
| End of life | Disposal / landfill | Recyclable into new pallets |
| Cost per trip (net effect) | Often higher than it appears | Often lower over the lifecycle |
ISPM-15 is the international standard requiring wood packaging used in export to be heat-treated or fumigated against pests. Plastic pallets contain no timber, so they fall outside the standard and move across borders without that treatment.
How many trips does a plastic pallet last?
A single durable plastic pallet can replace many timber units over its service life, because it resists the breakage, moisture damage and pest issues that retire timber early. That longer life is what drives the lower cost per trip, and it is strongest in closed-loop systems where the same pallets cycle repeatedly between fixed points rather than being sent out once and lost.
The exact number of trips depends on load, handling and environment. Ozkor can model expected cycles for a specific operation — figures should be confirmed against your own usage data rather than assumed.
When does timber still make sense?
Timber can still be the right choice for genuinely one-way, low-value, non-hygiene shipments where the pallet will never return and automation, contamination and export treatment are not factors. The TCO case for plastic is strongest when pallets cycle repeatedly, run through automation, carry food, pharmaceutical or high-value goods, or cross borders.
Frequently asked questions
Are plastic pallets worth the higher price?
In most repeat-use, automated, hygiene-sensitive or export operations, yes — the lower cost per trip over the pallet’s life usually outweighs the higher purchase price. For genuinely single-use, low-value shipments, timber can remain cheaper.
Do plastic pallets reduce export costs?
Yes. Because plastic pallets are ISPM-15 exempt, exporters avoid the heat treatment or fumigation, certification and potential quarantine delays that apply to timber.
Are Ozkor pallets made in Australia?
Yes. Ozkor manufactures its plastic pallets and bulk bins in Australia and holds ISO 9001 certification.