If 2 in every 100 pallets fail to come back from each trip, the loss rate is 2% per trip. Loss caps the useful life of a pallet: at 2% per trip, a pallet makes on average about 50 trips however durable it is.
Loss is the single most important number when deciding whether durable pallets (plastic, block) pay back. Measure it before buying.
See also
- Closed loop
- A pallet program in which the same pallets circulate between known locations and come back to the owner.
- Lost-pallet charge
- A fee a pallet owner bills when rented or loaned pallets can't be accounted for.
- Cost per trip (CPT)
- The total cost of using a pallet for one shipment, including everything beyond its price.
- Pallet float
- The number of pallets a closed loop needs in circulation to keep shipping.