Do you ever feel confused or overwhelmed when it comes to air freight shipping?

Don’t worry, you are not alone. Understanding air freight shipping can be a daunting task. We have a few pointers that should help take the guesswork out of air freight shipping.

When shipping by air freight, your air freight providers will be charging their rates based on either dimensional weight or actual weight.  

Did we lose you already?

Let’s start with explaining the difference between dimensional weight and actual weight. 

• Dimensional weight is a calculation of a theoretical weight of a package that takes into account the length, width and height. It is the product of multiplying these measurements by each other (L x W x H).
• Actual weight is the true weight of a package. When you place a package on a scale, you see the actual weight of that package.

How do you know if you will be billed by dimensional weight or actual weight?

Generally speaking, the decisive factor for calculating the price is whether the dimensional weight exceeds the actual weight. You should check with your air freight provider to get their specific criteria.

A quick way to check your shipment is to measure the length, width and height of your unit load in inches. Multiply these three dimensions and then divide by 166 (or 139 for international shipments). If this amount exceeds the actual weight of your unit load then you may be paying air freight charges based on dimensional weight.  

For example, a lightweight load that is being exported – pillows, potato chips, ceiling tiles – may only weigh 500 pounds. If that unit load measures 48” x 40” x 50”, then its dimensional weight would be 690 pounds (48 * 40 * 50 / 139). The shipper would then be paying higher air freight rates based on dimensional weight and not actual weight.

This is very important because many companies tend to focus on actual weight when shipping by air freight. Rather, companies should be looking at both actual weight and dimensional weight. Instead of making their unit loads lighter, it may be more beneficial for companies to make their unit loads smaller in size, therefore increasing the density of their goods being shipped.  

Recently, the Nelson Company was able to show one of its customers that they could save $40 for every inch that their unit load height was reduced!

Still confused? Don’t worry we are here to help. Leave your questions about air freight shipping below in the comments section and we will get back to you with an answer.

Post by: Rich Reiher, Vice President

Trying to save money on inbound freight? Regardless of the supplies or commodities that are coming into your plant, the prudent business person is always trying to minimize the cost incurred in shipping them. Specific to pallets, there are many ways to save money on inbound freight.

Here are 5 specific ways to manage and possibly reduce the cost of shipping empty pallets.

1. Use Nestable Pallets
   When it comes to shipping plastic pallets, the term “Nestable” = “Savings”.  Pallets are labeled nestable when the legs or blocks are able to “nest” inside each other. Using nestable plastic pallets, you can fit 50 or more pallets per stack or “skid spot” when shipping empty pallets. If a nestable plastic pallet is not an option because bottom runners are needed, ship the pallets unassembled and then assemble them at your plant. Generally speaking you can fit about 800 unassembled pallets on a truck vs 540 assembled. The more pallets per load, the less shipping cost per pallet.
   
   
2. Maximize your Stacks
   This may seem obvious, but you would be amazed at how many companies waste money by ordering a set amount of pallets without giving consideration to how many fit into a stack. For example, a purchase order comes in for 100 stackable, plastic pallets. Most of our designs fit about 18 pallets per stack. 100/18= 5.5 stacks. You are already paying full price for the space holding the half stack, so why not maximize the height? They should have ordered 108 to make 6 full stacks, 18 pallets high. Every little bit helps.
   
   
3. Invert the Stacks
   If purchasing a 3-runner style pallet, don’t just stack empty ones on top of the other. Invert them so you can get more in each column. Using the 18 pallets per stack example, if the pallets are 3-runner and you invert them, you can get 25-28 pallets per stack depending on the actual height of the pallet design. That’s almost 10 more pallets per pallet spot on the truck… $$$.
   
   
4. Push Pallets all the Way Back
   Make sure the pallets get shoved all the way into the truck. Many times we see space at the end of the truck when we first open the door. Usually, it’s just short of a pallet space so the assumption is that they left the last two columns off the truck because they couldn’t fit. If the person loading the truck had pushed each individual stack all the way back, they would have been able to fit the last two stacks on the back. It may be worth a reminder to your truck loaders.
   
   
5. Shop, Shop, Shop
   Finally, make sure you are staying current on your freight estimates. Without giving up quality of service, you should always have a few options on how you can move your freight. Not every carrier has the same prices for the same lanes, so it’s good to check around every now and then. Most companies, including the Nelson Company, develop strong relationships with specific carriers who keep an eye on better lanes. This can be effective when looking to save money. 

With so much going on, sometimes it’s hard to keep your eye on everything. Hopefully, these 5 reminders will help you better manage inbound freight costs. When placing your next order for pallets, take a moment to see if you can maximize your truckload. We would be happy to help so please don’t hesitate to ask.

Do you use other methods to help get the most out of your truckload? Share your tips by commenting below.

Post by: Mike Cunneen, Director of Sales and Marketing

Where does wood pallet lumber really come from?

When we dispelled some common myths about the wood pallet industry, we revealed an answer that might have surprised you:

Pallet lumber comes from a variety of sources but is mainly a byproduct of wood needed for other markets.

The markets that trees are originally harvested for are: veneer production, grade lumber, furniture and paper. Any logs that are not deemed suitable for these more discerning markets could be sawn and sold as pallet lumber.  
 
Logs are sorted based on the species, size and amount of defects. Defects can include:   

• knots 
• crook (a warping along the edge of the wood)
• twist (a distortion in which the two ends do not lie on the same plane)
• mechanical issues related to how the log was cut
  

Whatever type of lumber you prefer, remember that pallet lumber is a byproduct. The pallet industry does not cut down trees to make pallets.

Pallet manufacturers actually maximize a tree’s value by using any lumber left over from other industries. Trees are a renewable resource and are a crop to be harvested. When one tree is cut down, two more are planted to replace it. We understand the importance of trees to our business.

It’s simple – without trees we would not have an industry. 
 
Have you ever considered where pallet lumber came from? Let us know your thoughts by commenting below. 

Post by: Jonathan Haynes, Nelson Sale Representative