Journal category
Freight, routes, backhauls, container fit and the cost of an empty mile.
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The subject
Freight is the largest single component of a recycled pallet's landed cost and the one buyers negotiate least. A trailer costs what it costs whether it leaves three-quarters full or full, and the difference between 380 units and 540 on the same lane is worth more than most negotiated unit discounts.
The second lever is the return leg. A truck delivering to your dock has to go somewhere afterwards, and those miles are in your rate whether or not the invoice itemises them. Pairing a delivery with a nearby collection routinely takes 15–30% off a lane — and the obstacle is almost always information rather than economics.
The third is geometry. The 48x40 pallet won North America because two fit across a 53-foot trailer. It fails in an ocean container for exactly the same arithmetic, and designing from the container inward rather than the catalogue outward is worth 8–15% more product per box.
Recurring figures
Where to start
The break points, and where they sit.
How empty miles end up in your rate.
Five and a half inches that cost you a box.
Working backwards from the vehicle you pay for.
3 articles
The cheapest mile in trucking is the one that was going to be driven anyway. Most pallet buyers are sitting next to one and have never mentioned it.
The pallet that won North America because it fits a trailer is the wrong pallet for a box that is five and a half inches narrower.
A 53-foot trailer costs what it costs whether you put 380 pallets on it or 540. Most buyers negotiate the unit price and never look at the number that actually moves.
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