The pursuit of sustainable development highlights the circular economy (CE) as a viable approach. Pallets, transporting over 80% of global trade, lack CE performance (CEP) evaluation, hindering sustainability efforts in logistics. This study develops a comprehensive framework comprising 17 indices across the pallet lifecycle to evaluate CEP in China, based on literature review, field studies, and integration of material flow analysis and life cycle assessment. Results reveal significant variation in CEP across pallet types. Wooden pallets generate substantial waste, with a high waste-to-weight ratio of 58.60%, due to inefficient processing. Plastic pallets exhibit high material efficiency (99.88%), but face environmental challenges due to non-renewable resources reliance. Steel pallets demonstrate exemplary waste management but are underutilised. Paper pallets need better durability and fly ash pallets have environmental concerns due to adjuvants. The proposed framework offers an effective tool for promoting sustainability in logistic carrier industries, with applicability extending beyond pallets.