Industrial warehousing is priced three ways: per pallet position per month, per square foot per month, or as a dedicated lease plus labor. Rates vary widely by market, commodity and term, and any number quoted without knowing your pallet dimensions, throughput and dwell time is guesswork. The reliable way to get a real figure is to describe the freight and get market pricing back.
The three pricing models
Which model you are quoted tells you a lot about how the provider sees your freight.
- Per pallet per month: common for palletized, rackable goods with moderate throughput.
- Per square foot per month: common for floor-stored, oversized or irregular freight such as steel, lumber and machinery.
- Dedicated space lease plus labor and equipment: used at larger volumes or where a dedicated operation is justified.
Handling is separate from storage
Storage rent is usually the smaller line. Inbound handling (container unloading, palletizing), outbound handling (order pick, load out), and any value-added work are charged separately. A low storage rate paired with high handling charges can be more expensive than the reverse for high-throughput freight.
What drives your rate
Market and submarket, commodity characteristics (weight, hazard class, dimensions), dwell time, throughput, term length, space commitment, and whether the freight can be racked all move pricing. Short-term overflow costs more per unit than a twelve-month commitment.
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