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Logistics · 6 min · 9 May 2023

The trailer is full of air: why pallet freight is priced the way it is

A full trailer of pallets weighs about a third of what the trailer can legally carry. That single fact explains almost everything about pallet economics.

Written by the RePallet USA yard team

Warehouse interior with pallets sorted by type — natural wood, blue pooled units, black plastic and EPAL stamped stacks
SegregationSorted by type, not by convenience. Pooled units go back to the pool; plastic runs a separate stream entirely.

Talk to the yard about this

Everything on this site leads back to the same desk. If this post raised a question about your own operation, ask it here.

  • Written quotes, usually inside one business day
  • Loads from 100 pallets to full 53' trailers
  • We buy as readily as we sell — tell us which way it flows

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US ZIP (43217) or Canadian postal code (K1A 0B1).

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No phone number required from us — we quote by email so you have the numbers in writing.

Recycling yard with a steel bin full of broken pallet wood, a grinder conveyor, stacks of pallets and a forklift beyond

The last four per cent

Everything the sort deck rejected, on its way to the grinder. It leaves as mulch, bedding and boiler fibre — not as landfill.

A 53-foot dry van can legally carry around 45,000 lb of payload. Load it with empty 48×40 pallets stacked two high and you will get about 330 units on, weighing roughly 15,000 lb.

You have filled the trailer and used a third of its capacity. The rest is air, and you are paying to move it.

Cube out, gross out

Freight people talk about a load cubing out or grossing out. Cubing out means you ran out of space before you ran out of weight allowance. Grossing out is the reverse.

Dense freight — liquids, metal, paper — grosses out. You fill half the trailer and you are at the axle limit. Light bulky freight — insulation, packaging, empty pallets — cubes out, and every mile you drive, you are moving a substantial volume of nothing.

There is no clever way around this. You cannot compress a pallet. Stacking three high helps if the receiver will take it and the trailer has the interior height, but most operations run stacks of fifteen units at 5½ inches, and two of those is about 165 inches against a 110-inch interior. Two high is what fits.

Which is why distance is the whole game

Because a load of pallets is priced by the mile rather than by the pound, the freight component of a delivered pallet is close to linear in distance. In our lanes it typically runs 20 to 35% of the delivered cost.

Work that through. A yard forty miles away quoting $8.50 a unit delivered will beat a yard three hundred miles away quoting $7.25, comfortably, every time. We have lost bids on unit price and won them on delivered cost more often than we can count, which is why we quote delivered by default.

It is also why we are candid about our own range. Past about 350 miles on our own equipment the arithmetic stops working in our favour and we will say so rather than quote a number that only works on paper.

Assuming stacks of 15 at 5.5 inches per unit and 45 lb per recycled pallet.
EquipmentUsable deck48×40 two highApprox. weight
53′ dry van630″ × 98″≈ 330 units≈ 15,000 lb
48′ dry van570″ × 98″≈ 300 units≈ 13,600 lb
40′ container474″ × 92″≈ 240 units≈ 10,900 lb
20′ container232″ × 92″≈ 120 units≈ 5,400 lb
Flatbed, tarped624″ × 102″≈ 340 units≈ 15,400 lb

The two things that actually reduce it

Fixed lanes. A truck already routed past your door costs a fraction of a truck dispatched for your load. This is why we run a repeating weekly pattern rather than dispatching on request, and why a customer who accepts our Tuesday slot pays less than one who insists on Thursday.

Backhaul. The trailer that delivers your graded stock can take your empties away on the same run. Two movements become one. It is the single most effective thing available to anyone who both buys and generates pallets, and it does not happen automatically — you have to ask for it.

  • Take the scheduled slot rather than requesting a specific day
  • Combine delivery and collection on one movement
  • Order in trailer-sized quantities where your storage allows
  • Always compare delivered prices, never FOB against delivered

Why stacking three high is not the answer

It comes up in every conversation about this, and it works less often than people expect. Interior height on a standard dry van gives you room, but the practical constraints are elsewhere: forklift mast height at both ends, the stability of a 22-foot stack of pallets in transit, and whether the receiving dock will accept it.

Where all three line up — usually a customer with high-mast equipment and their own yard — three high is a genuine saving and we will do it. Where they do not, a stack that tips in transit costs far more than the freight it saved.

Published 9 May 2023 in Logistics. Written by the RePallet USA yard team in Columbus, Ohio. We correct posts when they turn out to be wrong and note the change rather than quietly editing.

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