MSD has immediate space for pallet storage available now.
Depending on the pallet storage rates, external warehouse storage can often be a highly cost-effective strategy for minimising your overheads or for providing essential additional facilities, such as during peak seasonal periods or during a growth phase.
If you are paying out £100,000 in rent and rates with your own warehouse, have you considered putting your pallet shipments in to a specialised storage & warehousing company?
Using the same example of external pallet storage costs being £20,000 per year, if you were to take a lease on a new warehouse which cost £60,000 per year and invested £50,000 in pallet racking to take all of your pallets stored externally, you achieve a ROI as well as dramatically reducing your monthly outgoings.
So what are the weekly costs for storing pallets?
MSD Weekly Pallet Storage Rates – External Warehouse
As a rule of thumb, typical external pallet storage rates can vary from £1.50 – £5.00 per pallet per week, however that figure will depend on many factors and may exclude handling fees, which refers to the cost of loading and unloading pallets from the trucks to the racking and vice versa.
There are a number of factors which will influence the costs, including
- How many pallets are you storing?
As you would expect, discounts are available for larger quantities of pallets.
- Are you storing standard CHEP or euro pallets?
The CHEP pallet is the most common type of pallet used by UK companies and measures 1200mm x 1000mm. However, if you are storing pallets of goods supplied by overseas companies, they are more like to be using EURO pallet which is slightly smaller at 1200mm x 800mm. This difference in size will impact on the number of pallets which can be stored on some racking systems and therefore costs.
- What is the height of the pallets?
Typical pallets tend to be approximately 1.6m in height. Should your pallet heights be greater, you may incur additional costs.
- Can the pallets be block-stacked or do they need racked?
If the pallets to be blocked stacked on the floor, you may be able to enjoy some savings, however they may be offset against the additional handling costs associated. Damage to stock may also need to be considered if you choose to go for block stacking.
- Are the contents fragile/hazardous?
Most warehouse providers will assess the risk associated with storing your pallets and price accordingly. Fragile items will obviously need to be treated with more care and therefore need to be located in certain areas.
Similarly, hazardous items such as chemicals which require IBC Storage may be limited to the type of racking they can be stored in.
- Location
The physical location of the external warehouse is obviously going to play a major factor in the storage costs. Warehouses within London and the M25 are going to be more expensive than the North of England and Scotland. MSD has storage in central, UK, Leicestershire. This is ideally located in the middle of the country and we can get to all parts of the UK on our delivery service for you at very cost effective rates.
Additional Costs of External Pallet Storage to Consider
Handling fees can typically be £1-£1.50 per pallet, per movement. However these are one off charges only for handling. Our Storage rates then apply per pallet per week only.
Additional transportation costs will also have to be considered for delivering the pallets to your clients and if you use MSD for your deliveries then the storage rate discount may well be offered to you.
Conclusions on Pallet Storage Rates
So, if you are using external storage on a regular basis or at the point of considering using external storage to cope with your additional storage requirements, it may be worth considering all the options available to you. You may just be surprised at how quickly an investment in a storage company with dynamic pallet racking could pay dividends.
Contact us now on 0116 2604080 or email sales@mitchelldistribution.eu for more ideas.
