Pallet Storage Pricing - Monthly Rates & Fees: Pallet Storage Costs Explained

Warehouse Storage Rates Per Pallet

One of the most frequently asked questions is: How do Companies Charge for Warehousing? We created this article to help companies understand the costs of storing products or goods in a warehouse. Our main focus for this article is to explain pallet storage pricing, including the basic storage fees that may accompany them.

Typical pallet storage fees range from $18 to $25 per pallet monthly, depending on location, market conditions, and the types of warehousing services provided. Results from our most recent pricing survey show an average price of $20.37 per pallet per month.

How Much Do Warehouse Companies Charge for Pallet Storage?

3PL Warehousing Costs by Storage Method:

The cost of 3PL warehousing generally depends on the storage method, with the most common options being storage space by pallet, cubic feet, or square feet. Pallet storage space is the standard in most 3PL warehouses. Storage fees are typically billed monthly, though some providers may charge bi-monthly, weekly, or daily based on average space usage.

Please reference our in-depth articles on warehousing costs and fulfillment pricing for more comprehensive scenarios, including the costs associated with full-scale fulfillment services.

How Much Pallet Space Do You Need, and How to Calculate Storage Cost Per Pallet

When projecting costs, businesses may not know how much pallet space they need each month. Alternatively, companies moving to a new 3PL warehouse may not fully understand their current pallet usage. You can estimate the pallet space needed by calculating how many cartons/boxes fit on a standard 40 x 40 x 48-inch pallet. Or use your best judgment and try our pallet calculators below:

Why Pallet Prices May Vary Each Month

• Pallet In/Pallet Out Fees: Besides your monthly storage fees, each pallet incurs an additional fee when brought into or shipped out of the warehouse, typically ranging from $4 to $8 per pallet each way. These fees add to overall storage costs.
• Warehouse Location: Warehouse location significantly impacts storage costs. Renting space in busy urban areas or business districts generally comes at a premium, while suburban or remote locations may offer lower rates. However, storing goods farther from your business, customers, or shipping ports can increase transportation costs.
• Special Storage Requirements: Dry warehouses are generally more affordable, as they have lower operating costs due to the lack of climate control systems. In contrast, temperature-controlled warehouses require heating, cooling, and humidity regulation, which increases energy use and operational expenses. This added complexity results in a higher cost for climate-controlled storage.
• Warehouse Insurance Fees: Insurance fees add to storage costs, covering potential risks like damage, theft, or natural disasters. The cost varies based on the value and type of goods stored, with higher fees for fragile, high-value, or hazardous items.
• Cross Docking: Cross-docking tends to be a premium service due to the quick handling and coordination it requires, with goods transferred directly from inbound to outbound trucks without long-term storage. This approach reduces storage fees but incurs higher costs for labor and logistics.
• Bonded Warehousing: Bonded warehouses come with higher costs due to additional regulatory and customs handling requirements. However, they can offset these expenses by helping businesses avoid customs fees for international goods, which is especially beneficial for items like alcohol or foodstuffs.
• Trade Show Storage: Trade show storage often has higher short-term costs because it includes logistics services for transporting items to and from event locations. While more expensive than regular storage, it offers flexibility for companies needing temporary storage for specific events.
• FBA Storage: Storage under Amazon’s Fulfilled by Amazon (FBA) program is often more costly due to Amazon’s fee structure, especially for overstock or seasonal items. To balance these costs, some businesses use separate warehouses to store excess inventory, which adds complexity but can reduce Amazon-related fees.
• Commercial Storage: Commercial storage is typically a cost-effective option for businesses that need straightforward storage for products or raw materials. Costs vary depending on the level of access and volume but remain manageable for businesses not requiring specialized conditions.
• Product Storage: As one of the most basic and common storage types, product storage is generally affordable, with costs based on space usage and accessibility. It’s a practical choice for businesses that need storage without additional services or conditions.
• Overflow Storage: Overflow storage can be a more economical option when shared among several companies, as it spreads the costs and reduces individual expenses. While affordable, this type may lack specialized services since the space is typically shared and used temporarily.
• Short-Term Storage Premiums: Short-term warehouse storage agreements (less than a year) generally come at higher rates due to the added complexity and quick turnover. Warehouses prefer longer commitments and often charge a premium for short-term projects, particularly if the storage period is only a few days or weeks.
• Limited Options for Small, Short-Term Needs: Storage projects involving fewer than 30 pallets or shorter durations often face limited availability and higher costs, as these arrangements are less profitable for warehouses. Small-scale, short-term storage may require more niche providers, potentially driving up costs due to fewer options.
• Volume Discounts for Long-Term Storage: Long-term storage agreements (over a year) with higher pallet volumes (typically 50+ pallets) allow for better-negotiated rates. Warehouses are more willing to offer aggressive discounts for larger, consistent storage commitments, making long-term arrangements more cost-effective.
• Bulk Discounts: Volume discounts are a common way to reduce storage costs, with around 38.71% of warehouses offering 2-12% off for storing over 100 pallets per month. These discounts can make high-volume storage more affordable.

Pallet Storage FAQs

What do warehouses charge for storage?

Public warehousing companies typically charge around $15–$20 per pallet per month, $0.55 per cubic foot per month, $3.20 per bin per month, or $1.15 per square foot per month for storage services.

What do warehouses charge for pallet-in/pallet-out services?

Warehouses usually charge between $4 and $8 per pallet for inbound and outbound services, covering tasks such as receiving, pulling, and preparing pallets for shipment. Pricing within this range can vary based on factors like warehouse location, additional services, and the types of products being stored or shipped.

Do warehouses offer price breaks for skid storage?

Warehouses often provide price breaks ranging from 2% to 12% for customers storing over 100 skids. These discounts depend on factors like pricing structure, storage duration, and pallet volume. Negotiating these price breaks can help customers with large storage needs reduce costs.

How frequently does skid storage get charged?

Charges for pallet storage typically occur at intervals aligned with the warehouse’s billing cycle, often monthly or quarterly.

How are skids stored in a warehouse?

Items are stored on racks or shelves, typically stacked using forklifts for easy access. The stacking method depends on the warehouse layout and the type of products stored, organized systematically to maximize space and improve inventory management.

What are the average dimensions of a pallet?

The average pallet size in a warehouse is 40 × 48 inches, with a height of 4–6 feet.

Is FREE storage common, and if so, for how long?

Free storage is uncommon in third-party warehousing. However, some 3PLs may offer a few days of free storage for customers moving large volumes or with established relationships.

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