Freight Costs & Rates

Warehousing and 3PL Pricing: What You Are Actually Paying For

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Warehousing and 3PL Pricing: What You Are Actually Paying For

Frequently Asked Questions

How is 3PL pricing structured?+

Usually across five lines: receiving or inbound charged per container, pallet, carton or hour; storage charged per pallet or per cubic foot per period; pick and pack charged per order plus per line and per unit; packaging materials at cost plus markup; and outbound shipping at carrier cost, sometimes with a handling margin. The headline rate is rarely where the money is, receiving and the accessorial schedule usually dominate.

Why is receiving so expensive at a 3PL?+

Because unloading method drives labour. A floor-loaded container costs far more to receive than a palletised one, since someone must unload by hand and build pallets. If your supplier floor-loads to maximise container fill, you are trading ocean freight saving against warehouse labour. Unscheduled deliveries, unloading beyond a free allowance, and rework for unlabelled cartons or count discrepancies all add further inbound charges.

What should I ask for before signing a 3PL contract?+

The full accessorial schedule, not just the headline rates. Ask specifically about minimum monthly charges, technology or account fees, rework, returns processing, kitting, labelling, cycle counts, long-term storage surcharges on aged inventory, onboarding, and offboarding charges for removing your inventory if you leave. Then model your real order profile (particularly lines per order, since pick fees are charged per line) and ask each provider to price that.

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