Archive of E-Zine Articles

Significantly reducing Freight Handling and Small Package Expenses

Volume 4, Article II, March 6, 2009

We are just in from the AUSA Winter show, in sunny Fort Lauderdale.  While this is a relatively small show, and almost all exhibitors felt that the set-up was very smooth, that doesn’t mean that these same exhibitors were keeping their expenses under control.  It was at this show that we observed one of the most common and costly mistakes being made repeatedly. 

Common mistake - shipping small, last minute packages into the trade show hall or convention center individually.  The costs climb when many boxes are shipped individually from different locations.  For example: At AUSA each box is assessed a freight handling fee of $46 per box.  If packages are skidded and shipped together, they are assessed a freight handling fee of $109 per 100 lbs. The cost difference between shipping boxes individually and as a group is related to the weight of the individual boxes. 

Grouped boxes cost $109 per 100 lbs. or $1.09 per lb.
A 20 lb box received at this show costs $2.30 per lb
A 30 lb box received at this show costs $1.53 per lb
A 40 lb box received at this show costs $1.15 per lb

The break even (point at which 1 lb costs $1.09) for an individual box received at this show is 42 lbs.  This cost of $46 can be higher, further offsetting the individual box cost.

Conclusion:  If you are not shipping boxes that are 42 lbs. or heavier, it is less expensive to ship boxes skidded.  And if you must ship a box last minute, it is safer and less expensive to ship this box to your hotel and carry it in.  This approach also eliminates the chance of the box getting lost or delayed by receipt at the trade show venue. 

Some other reasons to skid your product, product literature and give-away (marketing premiums) boxes:  

• There is much less chance of a skid disappearing at a show, whereas individual boxes are misplaced regularly.
• Shipping product and giveaways with your booth eliminates the need to track individual shipments.
• 3) Shipments are consolidated. This lowers shipping costs.
• 4)Give-aways and marketing premiums can be ordered in bulk in advance and stored at your warehouse. By ordering more of these items in advance, you can consolidate production and thereby, lower cost.
• 5)  Shipping these items with your exhibit all but eliminates the temptation to ship them by air last minute.  This significantly reduces your overall shipping costs.

Special handling fees are assessed for shipments on non-standard sized trucks.  For instance, if the truck carrying the skid is not as tall as the shipping dock, these fees apply.  Special handling at AUSA was $145 per 100 lbs vs $109 per 100.  Exhibits are shipped on standard height trucks, companies like Fed Ex often use shorter trucks even for their freight services. Special handling fees are assessed to these non-standard deliveries. 

Special Handling fees are also often assessed on loads that are stacked.  By stacked, we mean that if crates or skids are loaded in the truck, 1 on top of the other, these special handling fees are applied.  Also, sometimes if carpet or padding rolls are loaded on the truck on top of other crates, special handling may be assessed.  Needless to say, adding $36 per 100 lbs. (difference between $145 and $109) to the cost of moving your entire exhibit into and out of the convention center can be a budget breaker!

For additional tips on reducing your freight handling costs, please see these past TradeShowExhibitGuy articles at www.tradeshowexhibitguy.com:

Trade Show Exhibit Booth and Display Freight Handling Order Form--Part 1

Volume 1, Article I, October 24, 2005

Volume 1, Article II, November 7, 2005