Warehousing charges ?"

D

DWC

Active Member
Jul 21, 2009
429
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28
Blenheim Ontario
10
Good morning

Could anybody give me an idea what the typical charges for warehousing are, We are located in SW Ontario so I am not sure if location makes a difference or not for warehouse rates but I have one of our customers enquiring to warehouse some of there freight at our facility and it may be long term , Is there seperate charges for offloading and loading ? Do you charge by the skid or square footage used if so what are the calculations to do this ? Do you charge by the week or by the month ? any information would be greatly appreciated

Thank you in advance

DWC
 
It has been my experience that most warehousing firms charge a fee per skid for both "in and out". If your customer is looking for long term storage, a monthly charge should be more reasonable than a weekly one. However, why not bill on a 4 week cycle? That way you are collecting 13 months as opposed to 12, provided your customer agrees of course. Try to bill by the skid and not square footage, it becomes to complicated. If the product is easily stackable, you get the advantage. Of course, if this scenario involves "dead storage" (no in and outs, no activity during the storage period) you could offer a reduced rate to your client.
 
You can usually be creative with it. Generally you charge a monthly recurring storage fee, in/out handling fees, and BL processing fees. You'd generally give a better storage rate for freight that churns than for freight that simply sits for long term.
 
Thank you loaders and theman for your response, If you charge for an in and out skid charge, what happens if the freight itself is not moved for a month would a monthly charge apply for the skids ?

DWC
 
Generally: you charge a one time fee for handling the pallet in and handling the pallet out. And an initial per pallet storage fee. AT the first of each month you charge a per pallet fee for recurring storage. Inventory that is "dead storage" is charged more as warehousing companys make their $$ by turns. Generally you need to cost your per sqft rate and determine how much revenue is requried for that per sqft? Is it $ 15, is it $20 is it $25, then figure out how high each pallet can go then divide to come to your per pallet recurring rate. ANd yes BOL (Admin fee) per outbound order.
 
Yes. Each skid would be charged an in and out fee, preferably when they are first received. After that, each month, or whatever billing period you decide upon, the total number of skids would be billed. As an example; 24 skids received X $5.00 in + $5.00 out = $240.00
24 skids 1 month stg. at $8.00 per skid = $192.00
Some facilities will pro-rate the monthly charge, others do not. My example numbers are just that, examples, use whatever you feel is required for your service. Providing storage for a good customer can really help cement the relationship and perhaps lead to expanded opportunities.
 
Don't forget you need to include dock and aisle square footage when you are figuring out you cost per square foot, is it racked, can it be stacked (if it can't you need to charge more because the dead space above the pallet is not being used). You need to charge more for dead storage as you only make money on the turns, we find we can be really competitive on 5 to 6 turns a year. You charge an in/out or handling fee for loading and unloading all billed at the time it comes through and then you charge at the first of each month. Check the value of the freight this is very important, make sure the customer has the proper insurance also.
 
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