Let’s face it: pallet shipping costs are a significant expense that all buyers would prefer to reduce – or eliminate- and are rising. Part of the rising costs is fuel prices and changes in transportation and logistics regulations. With more trucks now using electronic logging, trucks are driving fewer miles, extending the delivery time because layovers have become longer, and fewer drivers are available to haul because longer hauls are now utilizing teams of drivers to keep the units moving.
Rejoice! We’ve got helpful advice to help customers reduce pallet shipping charges and stretch their operational budget dollars to their fullest.
Cutting Pallet Shipping Charges
Understanding the factors and variables that impact your total shipping charge calculations is important to getting the best freight charge for your pallets.
The main factors are:
- Pallet Location
- Pallet Specifications
- Pallet Order Quantity
- Shipping Timing
- Delivery Location
- Shippers
Read on to see how these shipping factors influence pallet freight costs.
Pallet Location
The shipping origin of your pallets is very important. The further away your pallets are located, the more you pay! The farther the distance from the origin, the longer it takes to ship them hourly, and it adds to more costs.
Tip: Choosing a local pallet supplier close to your location can reduce shipping charges and save money! It’s pretty simple math: fewer miles equals less expense.
Pallet Specifications
The smaller and lighter the pallet, the less shipping you pay. Furthermore, small pallets ship more compactly, allowing the shipper to pack more units into a stack position. The more pallets that can be put on a load, the more the cost of transportation can be divided by a larger number, so each pallet bears a smaller portion of the cost. Example: If the transportation cost is $600.00 and there are 600 hundred pallets on the trailer load, the cost is $1.00 per pallet. Put 800 pallets on the load, which costs $0.75, a $0.25 savings per pallet.
Tip: Reduce your shipping charges by considering a smaller pallet to meet your needs, especially if your products ship out less than full pallet loads. This will also reduce the number of carriers needed.
Pallet Order Quantity
Generally speaking, the more pallets you order, the smaller your “per unit” shipping costs will be.
Here are some examples of how adjusting your pallet order quantity can reduce your “per unit” shipping charges.
If your freight cost/delivery fee is $250.00 and you order 100 pallets, the cost per unit is $2.50 per pallet. Double the quantity ordered (200), and the cost drops to $1.25.
Tip: Find the sweet spot on your pallet quantity to optimize your “per unit” freight charges.
Shipping Service Level/Timing
Did you forget to do inventory and need pallets in a hurry? It’ll cost you. Faster shipping services for your pallets are more expensive, especially when a courier has to be called to make a small order pick up and delivery.
Tip: Monitor your inventory and place pallet orders before you run out. You’ll save at least 50% on shipping charges if you can wait the standard 3-5 business day transit time (instead of using rush services).
Delivery Location
Your location impacts pallet freight costs. Expect to pay more if you’re far away from the pallet shipping point.
Loading Dock
If you don’t have a loading dock, you’ll need a liftgate service from the shipper (unless you can somehow unload it yourself. Liftgates add approximately $50.00 to the shipping charges.
If pallets need to be shipped via a flatbed, costs will be higher as well since it is harder to get freight that can be out in the elements, and long deadheads are required.
Be Your Own Shipper
If you have your own fleet of trucks and are close to the pallet origin, you may be able to pick up the pallets and use them as a backhaul for your trucks.
Tip: If you have an account with a shipping company, you may get a discount that will reduce your shipping charges if they are used for multiple projects.