Pallet storage rates in the UK – what prices should you expect?

Have you recently started a company selling goods?

Perhaps you have been running a company and up until now have been managing the pallet storage and handling in-house?

To keep outgoings low many companies choose to deal with the logistics side of the business themselves initially when starting out however soon realise that contracting a logistics company who can store and deliver their goods for them is a lifesaver to the smooth running of their business once the business grows to a size that is a lot less manageable in-house.

Pallet storage price difference

When searching for pallet storage rates in the UK you may be noticing a vast difference in price in different areas of the UK. This is of course true for a number of reasons. Just as house prices differ in price from one location to another, so do pallet storage prices.

A number of factors come into play when pricing the storage of pallets of goods. This can include:

• Whether the warehouse is located close to a major city such as London

• The amount of pallets you have to store. (The quantity of pallets will alter the cost of your storage just as buying in bulk will reduce the cost from your supplier).

• The proximity of the warehouse to the port – take Felixstowe as an example. If you are receiving quotes from Felixstowe port and close surrounds you will see a significant increase in pallet storage rates in comparison to warehousing companies slightly further afield such as DMG Freight Services. Based in Harlow, Essex, we are within close proximity to both London and Felixstowe however are able to keep our pallet costs at a reasonable price for our clients as both of these locations are not on our doorstep.

• Height of your pallets will be another factor when looking at quotes for storage – if your pallets are of a standard height, which is usually between 1.2m and 1.6m, then they will fit into most racking that a warehouse has configured however if they are oversized then some warehouses may not be able to fit these sized pallets in their racking. DMG Freight Services have racking up to 2m high to accommodate oversized pallets enabling us to assist companies looking to store pallets of a larger size. Another option may be to resize your pallets on arrival however this will always incur an additional charge with warehouse companies so it is best to weigh up the costs of storing tall pallets against the cost of re-palletising all of your goods on arrival to the warehouse of your choice.

• Weight of your goods will be another consideration – if your goods are extremely heavy and require special machinery for moving the goods or are too heavy for racking then an alternative means of storage would be necessary such as a logistics company with the correct machinery and possibly a bulk storage option if the goods can be stacked on top of one another.

• Length of time you require the pallets to be stored will also determine the price. If you are only looking at storing your pallets of goods for one week for example, you will pay much more in storage costs rather than if you were looking at storing your goods long term for months/years.

• Finally, the movement of your goods will play a role in the price of your storage costs in addition to whether you are using the same logistics company to carry out other services for you such as distribution and picking of your goods. If your goods arrive at the warehouse and just sit there for months with no movement of these pallets in or out then the cost may be more than if you were calling off pallets weekly and replenishing them in the warehouse with new stock as the warehousing company will take into consideration the cost of RH&D (receipt, handling and despatch) which are incurred when moving the pallets in and out of the warehouse.

Weighing up the costs involved in storing and distributing your pallets

All of the above have a part to play in calculating your pallet storage prices. Location wise it does appear that pallet storage is cheaper in the far north of England or the deep South West however you would need to calculate the difference in price of your goods being transported from the storage facility to their final destination each time your goods are called off in comparison to the minimal extra cost of storage in a closer location to your distribution destinations.

Many fall into a false sense of security by purely comparing the storage cost rather than taking the other points above into consideration. By only calculating the pallet storage price without looking at the distribution costs, picking costs, RH&D and other costs this may end up costing a company much more money in the long run.

Once you have taken all of the above into consideration and calculated your costs of storage against distribution and other warehouse related costs you should be in a better position to be able to make a more informed decision on where is best to store your pallets of goods and what will be most cost effective for your business.

If you need any advice on storing and distributing your goods, please feel free to contact us at DMG Freight Services on 01279 452468 or email info@dmg-freight.com.