Are you facing fees for lost CHEP pallets due to CHEP audits?
Are you being charged excess fees for pallets shipped to non participating distributors?
If you answered yes to either or both of the above questions we would like to help. Please call Jim at 479-459-5889.
THE TRUE COST OF CHEP RENTAL PALLETS
CHEPs business tactics netted the foreign owned firm nearly three quarters of a billion dollars as reported in 2007! If you are a customer of CHEP or have rented, used, or received CHEP pallets and have been charged a "lost pallet fee" or fees for shipping to Non Participating Distributors please read on.
CHEP has been involved in multiple suits with its own customers.
* " CHEP has breached its implied obligation to act and perform its contractual responsibilities in good faith by failing to disclose any standard or routine difficulties that arise as to accountability of pallets used by CHEP 's manufacturers, or to disclose and take precautions against or otherwise implement proper measures to insure that lost or unaccounted for pallets could be accounted for." Performance Foods affirmative defenses, Case of CHEP vs Performance Foods. "See CHEP VS Its Customers Case List".* CHEP sues Performance Foods for $333,856 for unaccounted for CHEP pallets.
* Fleming Companies, Inc. cannot account for 316,401 lost CHEP pallets.
CHEP charges lost pallet fees estimated at $18-$24 to its customers when they cannot account for their inventory of CHEP pallets. At the same time CHEP will not allow you to obtain these lost CHEP pallets from recyclers to avoid this high cost.
PENN State Research Report on Pallet Rental Cost-Hidden Fees
Cost Analysis-Rental vs Buying
The Pitfalls Of Pallet Rental-
HAZARDOUS CHEMICAL CONTAMINATION OF CHEP PALLETS
Some have been shocked to learn that CHEP cannot assure food based customers that recovered pallets have not been used to transport pesticides, hazardous or toxic chemicals. As Credit Suisse First Boston wrote in a research report: "an estimated 20% of its pallet pallet pool being shipped to non participating distributors who don't have a contract with CHEP," With no contract, some recipients of the pallets could wind up using the CHEP pallets like these pictured here. Afterwards these VERY same pallets may end up being shipped into a food facility by CHEP.
CHEP has permitted the uncontrolled dispersion of its rental pallets in an effort to quickly penetrate the U.S. pallet market in a scheme dubbed the "Accelerated Volume Program(AVP)". This program to capture market share could potentially be injecting contaminated CHEP pallets into food processing facilities throughout the United States. Could it be possible that a company like CHEP would sacrifice food product safety for profits?
CHEP PALLETS FOLEY, ALABAMA
"As Credit Suisse First Boston writes in a research report dated February 27, 2002
at page 14, "Leakage of the pool to NPDs"- in launching the Accelerated Volume
Program (AVP) in 1997, CHEP didn't appear to ensure that it had the necessary controls
and sales representatives to 1) prevent manufacturers from sending pallets to NPDs;
and/or 2) follow the pallets and product downstream and then signing up the NPDs. This
has resulted in an estimated 20% of the pallet pool being sent to NPDs, distributors who
have don't have a contract with CHEP, and hence comply with the care of the assets.
"Ramifications" - There are several ramifications including: i) reduced asset turns; ii)
increased damage rate ; iii) increase in lost pallets ; iv) greater collection and transport
costs; v) "Black Market" pallet pool ; vi) litigation; and vii) the dilution of value
incorporated in the Participating Distributor Agreement."
Your input about CHEP activities are important. Contact us via the FEEDBACK FORM.
CHEP PALLETS BAGHDAD, IRAQ