The Role of Plastic Pallets in the Automotive Supply Chain

While wood pallets are a traditional choice, more suppliers and manufacturers are turning to plastic pallets.

July 2, 2025

Breanna Herbert

Orbis recently introduced a 60x48 industrial pallet specifically designed to cater to the unique requirements of EV and powertrain applications. (Orbis)

The U.S. automotive industry relies on extensive global supply chains, with a recent report noting that manufacturers source 22% of their cars ’engines from Japan and 13% from South Korea, and transmission systems and other components from other countries. Amidst this business landscape, the automotive pallet is crucial in transporting materials and components like engines safely and effectively. And while wood pallets are a traditional choice, more suppliers and manufacturers are turning to plastic pallets.

Breanna Herbert is a senior product manager at ORBIS Corporation. She wrote this article for SAE Media. (Orbis)

Plastic automotive pallets, also known as thermoformed pallets, are comprised of lightweight, sturdy materials like polypropylene (PP) and high-density polyethylene (HDPE) and offer a variety of advantages over wood pallets.

As background, the automotive industry converted to reusable totes and pallets, from boxes and wood pallets, decades ago. This conversion was driven by the need for standardization to efficiently ship parts from suppliers to assembly plants. The automotive industry, in particular, was looking to drive its lean manufacturing process. Other drivers included the need for part protection, sustainability and supply chain efficiency. Reusables were ideal for the automotive supply chains, where there are very controlled loops, predictable shipments, and existing logistics between suppliers and assembly plants. Reusable totes were standard sizes, and those totes were designed to cube out a 45x48 AIAG pallet to create a standardized unit load. These plastic 45X48 pallets offer durability, a long service life, and cost efficiency over the life of the pallet.

Durability

While the average wood pallet lasts only two or three years, industrial-grade plastic pallets can withstand up to a decade or more of heavy use. They withstand heavy loads, resist moisture and chemicals, and avoid the pest problems that often plague wood pallets. This robustness makes them a reliable option in the demanding automotive sector.

Cost Efficiency

Though the initial investment for plastic pallets may be higher compared to wood, their long-term cost effectiveness is undeniable. A Life-Cycle Analysis by the Virginia Tech Center for Packaging and Unit Load found that plastic pallets last 18 times longer than wood pallets –

more than 200 cycles for plastic compared to 11 cycles for wood. And in a Packaging Life-Cycle Assessment, reusable pallets were shown to reduce energy usage by 71%, solid waste by 72%, and greenhouse gas emissions by 3.2%. Further, because they are designed to be reusable, plastic pallets maintain their structural integrity over time. As a result, companies find they need to replace plastic pallets less frequently, which can lead to significant savings over time.

Customization

Plastic automotive pallets are available in a wide range of shapes and sizes, so it’s easy to find a product that fits almost any load and application. Select a standard size, like 48x45 or 48x40, or consider a custom pallet for your needs, including a new 60x48 industrial pallet specifically designed to cater to the unique requirements of EV and powertrain applications. This 60x48 pallet is well-suited for transporting EV components such as modules and longer battery components and offers enhanced load security and efficiency in handling and transportation.

Sustainability

While wood pallets are biodegradable, they pose challenges in terms of recycling. In contrast, plastic pallets can be repurposed at the end of their life cycle into new pallets or other plastic products. This aspect of sustainability makes them an attractive option for companies that are increasingly prioritizing environmentally responsible practices.

Safety and Compliance

Wood pallets can be dangerous when they begin to splinter and break down, leading to puncture wounds, cuts and abrasions, and other hazards. Switching to plastic pallets eliminates these problems as the material remains smooth and safe throughout the pallet’s lifespan. Also, plastic pallets are easy to clean and sanitize and isn’t likely to serve as a breeding ground for bacteria and fungi, even in humid conditions.

When choosing plastic automotive pallets, consider factors like load capacity, ease of handling and storage and overall cost. Engaging with various suppliers can provide valuable insights to help select the most suitable pallet for specific applications.