Reinforcing pallet ownership rights

CHEP Australia has settled a dispute with a Victorian food wholesaler regarding the use of CHEP’s distinctive blue pallets.

CHEP attempted to resolve the matter through commercial negotiations, however when these negotiations failed CHEP commenced legal action to protect the rights of its shareholders and customers.

This is the fourth dispute over pallet ownership that CHEP has successfully resolved over the past 12 months.

CHEP succeeded in asserting its rights to immediate possession of pallets in two court cases in New South Wales — the first against a fruit and vegetable retailer and the second against two food wholesalers. A third case, in Western Australia, was settled out of court.

CHEP’s Terms of Hire state clearly that it remains the owner of its equipment at all times as part of a managed, reusable, returnable packaging solution.

Only CHEP’s customers and their respective agents are entitled to use CHEP’s equipment. Neither CHEP’s customers, nor any other person, are entitled to buy, sell, modify or otherwise exchange CHEP pallets.

President of CHEP Australia, Paul McGlone, welcomed the latest outcome because it reinforced CHEP’s commitment to maintaining equity for all customers. “The courts have sent a powerful message that CHEP property remains CHEP property. Those who seek to gain an advantage by attempting to use CHEP assets, like pallets, without being a CHEP customer will be caught out,” he said.

McGlone said CHEP will take any and all action necessary to maintain equity of its pallet pool and to protect its customers. “The unauthorised use of CHEP assets erodes the value of our managed, returnable, reusable system, and creates unnecessary control burdens and costs on our legitimate users,” he said.

About CHEP

CHEP offers managed returnable and reusable packaging solutions to companies across the globe. Since 1956, our technology and know-how has helped some of the world’s best known brands including Procter & Gamble, SYSCO, Kellogg’s, Kraft, Nestle, Ford and GM get to market.

The company’s supply chain solutions help customers store, protect and move goods from production to point of consumption in a safe, cost efficient and environmentally sound way. Whether moving raw materials, meat, fresh food, bulk liquids, car parts, or consumer goods, technology and thinking are applied to make goods movement leaner, greener and safer.

For further information contact:

Cate Binet

Manager, Brand and Communications

CHEP Asia-Pacific

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