How to Calculate the Logistics Return Cost of Knock Down Bins?
The core cost of returning goods in knock down bins is calculated based on the folded volume, reducing costs by over 60% compared to full container load (FCL) shipping. The complete calculation method is as follows:
1. Core Basic Calculation Formula
Total Return Cost = Basic Freight Charge + Surcharges + Hidden Costs
Basic Freight Charge: The logistics industry calculates costs based on the greater of actual weight and volumetric weight. The general coefficient for volumetric weight is 167 kg/m (some dedicated lines use 175 kg/m), i.e., volumetric weight = total folded volume × 167.
Surcharges: Include fuel surcharges, loading and unloading fees, and cross-regional delivery fees, typically accounting for 10%-30% of the basic freight charge, and will increase accordingly when fuel prices fluctuate.
Hidden Costs: Temporary storage fees and manual sorting fees during the return journey, with a reserve fund of 5%-10% of the total value of each shipment.
2. Reference Return Costs for Different Transportation Methods
Domestic Less-than-Truckload (LTL): 0.3-0.8 RMB/kg (volumetric weight). After folding, the volume is reduced by 70%, with 10 foldable crates occupying only the space of one full container.
Domestic full truckload: 300-600 RMB/100km. One truck can carry 200+ foldable crates, increasing loading capacity by 3 times.
Cross-border sea freight: 50-120 USD/standard cubic meter. A 20-foot container can hold 300+ foldable crates, twice the loading capacity of a full container.
Cross-border rail freight: 0.8-1.5 USD/volume weight kg. No redundant space after folding, avoiding volumetric weight charges.
3. Key Cost Reduction Techniques
Prioritize bulk cargo consolidation for return transport, using full truckload/full container loads to spread unit costs, saving over 60% compared to less-than-truckload (LTL) shipments.
Lock in long-term logistics agreement prices in advance to avoid temporary increases in fuel surcharges; peak season space availability can reach 98%.
When not in use, completely flatten and fold the crates to avoid scattered stacking occupying extra space, further reducing the volumetric weight charge base.
Qingdao Feiyuan Storage Equipment Co., Ltd. is a manufacturer of storage and logistics facilities that integrates research and development, production, and sales. For more information about knock down bins, please contact us.
Address：Jiaozhou Industrial Zone,Huangdao District,Qingdao,China
Email：admin@fyracks.com
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