CHEP and Loscam pallets are not disposable pallets — they are hired, controlled assets that move through Australia’s supply chain. This guide explains how pallet hire accounts work, how transfers operate and how to avoid costly pallet control mistakes.
Home Freight Blog CHEP vs Loscam Pallets Explained: Accounts, Transfers and Freight Responsibilities
CHEP and Loscam are Australia’s two largest pallet pooling providers. Instead of businesses purchasing and owning pallets outright, companies hire pallets under a pallet control account.
These pallets — typically blue (CHEP) and red (Loscam) — circulate between manufacturers, warehouses, retailers and distribution centres across Australia.
They are not one-way pallets. They are controlled, reusable assets owned by the pallet provider, and their movement must be recorded correctly.
CHEP operates a global pallet pooling network and is one of the most widely used pallet systems in Australia. CHEP pallets are typically blue and follow the Australian standard pallet size of 1165mm x 1165mm.
They are heavily used in FMCG, grocery, retail and large distribution environments.
Loscam operates a similar pallet pooling model in Australia. Loscam pallets are typically red and are also built to the Australian standard pallet size.
Loscam has strong coverage across manufacturing, industrial and retail supply chains.
CHEP pallets cannot be transferred into Loscam accounts and Loscam pallets cannot be transferred into CHEP accounts.
Each pooling system operates independently. If pallets are delivered without a valid transfer to the correct account, liability remains with the sender.
When a business opens a CHEP or Loscam account, it is hiring pallets and accepting responsibility for them.
The pallet provider tracks how many pallets are in your account and charges hire fees based on outstanding quantities.
A pallet transfer is the digital movement of pallet responsibility from one account holder to another.
If you send 20 CHEP pallets to a retailer, you must process a transfer in the CHEP system to that retailer’s CHEP account. Once accepted, those pallets are removed from your liability.
If pallets are not transferred correctly, they remain on your account. This results in ongoing hire charges and potential pallet imbalance fees.
Over time, these costs can become significant — especially for businesses shipping high volumes of palletised freight.
Responsibility depends on who currently holds the pallet in their account.
If you dispatch freight on CHEP pallets and fail to transfer them, you are still responsible — even if the freight has been delivered.
Many businesses encounter pallet control issues due to small administrative errors. These mistakes can create significant cost exposure.
No. Freight carriers transport the goods and pallets physically, but pallet transfers are the responsibility of the sender and receiver.
Pallet pooling companies manage the asset tracking — not the transport carrier.
QFM manages pallet freight across multiple carriers nationwide. While pallet control accounts remain the responsibility of the shipper, QFM helps ensure pallet quantities are recorded correctly on consignments and aligned with freight documentation.
We also help businesses choose the correct freight network for palletised freight, including tail-lift services, bulky handling and interstate transport.
If your business ships palletised freight and needs help improving delivery performance while keeping pallet control clean and compliant, QFM can build a tailored multi-carrier freight solution.