How to Price Barrel and Box Shipping: A Guide for Consolidators
How consolidators price barrels, boxes and appliances: work out your cost per container, set per-barrel and per-cubic-foot rates, add pickup and delivery fees, and protect your margin.
Price from your costs, not from what the competition charges. Add up what a full container costs you all-in, divide by the barrels you realistically load (not the maximum), add your fixed per-booking costs, then add a margin. Charge barrels per piece, and boxes and odd items by size or cubic feet, with clear fees for pickup, delivery and anything oversized.
- Start with your all-in cost per container, then divide by the barrels you actually load.
- Plan on a less-than-full container: price for your average load, not the best case.
- Charge barrels per piece, boxes by size or cubic foot, and add separate fees for pickup and delivery.
- Review your prices every time your NVOCC or carrier rates change.
Step 1: Know your cost per container
Every price you quote has to cover the cost of the container it travels in. Add up everything you pay to move one container from your warehouse to the destination, including the items that are easy to forget.
- Ocean freight and surcharges from your NVOCC or carrier (fuel, terminal handling, documentation and security fees). See how to compare container shipping lines.
- Trucking to and from the port, and chassis fees.
- Export filing and insurance, if you buy them.
- Destination charges, if you pay them rather than the receiver.
- Warehouse costs: rent, labor, forklift or pallet jack, strapping and packing supplies.
- Overheads: software, phone, vehicle costs and your own time.
Ask your NVOCC for an itemised, all-in quote so nothing surprises you later.
Step 2: Divide by a realistic load
It is tempting to divide your container cost by the most barrels that could fit. Real containers rarely load perfectly. Boxes, appliances, furniture and cars take up room, and some space is lost between awkward items. Divide by what you realistically load on an average container.
Track your actual loads for a few containers, then use the average. Our guide on how to load a shipping container explains how to fit more and waste less.
Step 3: Choose how you charge
| Item | Common way to charge | Notes |
|---|---|---|
| Barrels | Flat price per barrel | Easy for customers to understand. Set a weight limit per barrel. |
| Boxes and totes | By size (small, medium, large) or by cubic foot | Publish a size chart so customers can estimate their own cost. |
| Appliances and furniture | By cubic foot, or a flat price by type | Large items cost the same space as several barrels. Price them that way. |
| Vehicles | Flat price by vehicle size | Add fees for paperwork and any special handling. |
| Pickup | Flat fee or by distance | Often waived above a minimum order. |
| Delivery at destination | Flat fee by area | Make clear whether delivery is included. |
Whatever you choose, keep it simple enough to explain in one message. Customers who cannot work out the cost themselves will ask, and every question is time you are not loading containers.
Step 4: Add your margin and a buffer
Your break-even price covers costs. Your selling price also needs to cover:
- Slow months when containers leave partly empty.
- Damaged or lost goods you choose to compensate.
- Rate increases between quote and sailing.
- Customers who pay late, or not at all.
- Your profit, which is the reason you are in business.
Many consolidators add a margin on top of break-even and then check the result against the market. If you are far above competitors, look at your costs and your service before you cut your price. If you are far below, you may be leaving money on the table.
Fees worth charging separately
- Overweight or oversized items, because they use more space or take more handling.
- Packing and repacking, if you repack customers' goods.
- Storage, for goods left in your warehouse past a set number of days.
- Rush or late drop-off, for goods that arrive after your cutoff.
- Documentation or customs fees that you pay on a customer's behalf.
Write your fees down and show them to customers before they book. Clear fees prevent disputes at payment time. In ShipBackHome you can set default fees so they are added to new bookings automatically.
Review your prices regularly
Rates move with the season, fuel and demand. Check your prices whenever your freight rate changes, and at least before the autumn peak. Look at which containers made money and which did not, and adjust.
Once you are issuing many bookings, invoicing and tracking payments becomes as important as the price itself.
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