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Postimees · Logistics (Logistika) · 2026

The cheapest pallet is not necessarily the most economical solution

English translation of the original Estonian article. Original headline: Kõige odavam kaubaalus ei pruugi olla kõige soodsam lahendus

A pallet usually makes up a very small share of the value of the goods being transported, but the breakage of a wrong or poor-quality pallet can cause costs many times greater: damaged goods, production or logistics downtime, complaints and extra expenses. Quality pallets, however, are made right here on the outskirts of Tallinn, where reliable solutions are on offer.

All too often, one of the first places where companies try to cut costs is the price of pallets. Unfortunately, this logic doesn't always produce the best solutions. When a pallet of the wrong size or too weak breaks during transport, a rather unpleasant chain reaction begins: the goods, logistics, business relationships and transport costs all suffer. A saving of a few cents on the pallet price disappears in seconds and can ultimately swell into a large compensation claim.

"The cheapest pallet is not necessarily the most economical solution," Priit Biene, CEO of Kaubaalus OÜ, urges customers. To avoid possible unexpected costs, it is worth looking at the bigger picture.

Do the goods even need a EUR pallet?

The EUR pallet, measuring 1200 x 800 mm, is the most common in the world and the automatic choice in many companies. But the most common doesn't always mean the most suitable. Kaubaalus OÜ produces a large number of custom-sized pallets designed for a specific product. The process is simple: the customer provides the dimensions and weight of the goods and information on how they are transported and stored. Based on this, Kaubaalus OÜ proposes the most suitable construction.

To avoid excessive costs, two issues are worth looking at. Biene explains that sometimes a standard pallet turns out to be over-dimensioned for the customer's goods, because it is stronger and more expensive than actually needed. At other times it's the other way round: a stronger pallet than usual is needed because the goods are heavier. "Saving a small amount on the pallet can later mean damage running into thousands of euros. That's why it's good to ask professionals for an offer in which all the details are discussed precisely," notes Biene.

The question every regular pallet user could ask themselves is simple: is our current pallet really the most sensible one for our goods, or do we use it simply because it's always been done that way?

ISPM 15 may turn out to be more important than you think

Sometimes producers remember too late that heat treatment of wooden pallets is required for export. Insects and fungal spores can live in untreated wood, which is why many countries require imported wooden packaging to be heat-treated. The international standard ISPM 15 stipulates that the wood is heated throughout to a specific temperature for a certain time.

A compliant pallet receives a stamp showing at the border that the pallet may enter the country. Kaubaalus OÜ has the capacity to produce heat-treated pallets with its own marking, so that a solution is available even at short notice.

More quality and capacity with a new production line

Kaubaalus OÜ has been making wood products since 1996 and over that time has become a supplier to large manufacturers in Estonia and Scandinavia. Over the years, experience and knowledge have only grown, and the company has invested in a new production line. In the company's building in Maardu, a pallet is completed every 48 seconds. One eight-hour shift produces up to 600 pallets from the automated line. Most of them head to the warehouses of Estonian manufacturers and from there all over the world.

The company produces around 100,000–150,000 new pallets a year. The new line makes it possible to double or triple production capacity while ensuring consistent quality. With large volumes, something that is hard to guarantee by hand becomes important: consistently high quality.

"For the company, however, the new line is not the end goal, but one step in a longer plan to automate the entire process from material preparation to the finished pallet," explains Biene.

According to the CEO, the goal is not to compete on price, but to offer reliable, consistent quality and a construction that fits the customer's goods exactly. That is also why Kaubaalus OÜ has stayed on the market for so long and kept growing: it offers what the customer really needs.

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