Packaging Mistakes That Increase Freight Costs

Why Packaging Shapes the Freight Invoice

Carriers don't charge based on what's inside the box — they charge based on what the box presents to their network. Dimensions, weight, stability, label readability and shape all feed into the pricing and handling decision before the freight has left the depot.

Most Australian interstate networks apply cubic conversion at 250 kg per cubic metre. That means a 1 m × 1 m × 1.5 m pallet weighing 180 kg rates at 375 kg cubic — not 180 kg. A 200 mm reduction in height drops the chargeable weight to 325 kg. Over a year of recurring lanes, that's a large number.

Mistake 1: Oversized or Under-Filled Cartons

Oversized cartons are the single largest driver of unnecessary carton freight cost. A 600 mm × 400 mm × 400 mm carton holding a 2 kg product rates at 24 kg cubic weight — twelve times its actual weight.

Under-filled cartons are the other side of the same problem. They collapse under stacking pressure at the depot, get crushed on linehaul and arrive damaged.

• Size the carton to the product, not the other way around — void fill is not free
• Cartons exceeding 1.0 to 1.2 m on the longest side are typically reclassified as bulky (surcharge around $15 to $40)
• Under-filled cartons collapse under stacking — use the next size down
• Irregular shapes bypass automated conveyors and enter manual handling streams

Mistake 2: Overhanging, Unstable or Top-Heavy Pallets

A pallet that overhangs its base by even 30 mm is routinely reclassified to the next pallet size. On a 1,165 × 1,165 mm CHEP footprint, overhanging to 1.3 m × 1.2 m moves the freight from a single-pallet rate to a 1.5-pallet rate — roughly a 50 per cent increase per consignment.

Unstable pallets are worse: they get rehandled at the transit depot, which adds 12 to 24 hours and a manual-handling fee of $25 to $80.

• No overhang beyond pallet footprint — measure the wrapped load, not the goods
• Shrink-wrap corner-to-corner from the base of the pallet upward, with at least two full turns at top and bottom
• Strap heavy or top-heavy loads with at least two banding straps
• Keep load square — taper from wide base to narrow top, not the reverse
• Use undamaged pallets; split blocks or broken stringers will be rejected at pickup

Mistake 3: Inaccurate Weight Declarations

Reweigh at depot is one of the most common invoice adjustments. Carrier DIM scanners capture actual weight and dimensions automatically, and mismatched data triggers an automated reclass adjustment on the invoice 30 to 60 days later.

Under-declared weight can also cause safety issues: freight that's heavier than declared may exceed tail-lift capacity, manual handling limits or pallet structural rating.

• Weigh after packaging is complete — pallet wrap, banding and corner boards all add weight
• Use calibrated scales; pallet-jack scales drift without recalibration
• Round weight up, not down — the invoice will use the scanned figure regardless
• For mixed pallets, declare the combined weight; don't estimate per-carton and multiply
• Dangerous Goods freight with incorrect weight can fail regulatory compliance

Mistake 4: Irregular Shapes and Unscannable Profiles

Freight that can't pass through automated DIM scanners is diverted to manual handling. Manual handling is slower, more expensive and more error-prone. It's also where the majority of depot damage happens.

Irregular shapes also bypass the bulk sorter and enter the specialist freight stream — typically a later linehaul departure with less frequency.

• Crate irregular items — long items, machinery, curved or protruding parts
• Use skids for single heavy items (motors, engines, castings) rather than palletising with void fill
• Protruding handles, pipes or wiring should be contained within the packaging footprint
• Rolling items (drums, reels) should be strapped to a pallet or crated

Mistake 5: Weak or Low-Quality Materials

Cheap packaging is expensive packaging. A damaged consignment costs the original freight, the return freight, the replacement freight and potentially the customer relationship. Most carrier terms limit claim payouts to $2 to $10 per kg, so the sender bears most of the actual value loss.

The cost difference between adequate and inadequate packaging is typically small — single-wall vs double-wall carton is around 20 cents per box.

• Double-walled cartons for anything over 15 kg or over 600 mm longest side
• Loscam or CHEP hardwood pallets for heavy loads; avoid no-name softwood pallets above 500 kg
• Adequate internal packaging (foam, airbag, honeycomb) to prevent item movement
• Moisture barrier for freight stored on external docks or during wet-season transit
• Corner boards on tall or heavy pallets to maintain shape under strap tension

Mistake 6: Packaging for the Delivery, Not the Depot

A common misconception is to package for the final destination. In reality, packaging has to survive multiple depot environments first. A typical interstate consignment passes through 2 to 4 depots, is scanned 5 to 8 times, and is handled by forklifts, pallet jacks and conveyors before it reaches the receiver.

Packaging that looks fine leaving your dock but fails the journey is the cause of most in-transit damage.

• Cartons must tolerate conveyor impact and stacking to three or four high
• Pallets must survive multiple forklift and pallet-jack lifts from different angles
• Labels must remain readable after wrap, dust, humidity and handling
• Freight must not shift during DIM scanning (which involves belt transitions and rotation)
• Outer edges and corners take the most impact — reinforce accordingly

Mistake 7: Poor or Unscannable Labels

Labels that can't be scanned are a primary cause of depot delay. Freight with unreadable labels is manually processed, which slows linehaul, can cause mis-sorts, and in rare cases triggers a lost-freight investigation.

The cost of a good label is cents. The cost of a bad one can be days of transit delay.

• Use printed thermal labels — handwritten labels fail barcode scanning regularly
• Place labels on clean, flat surfaces — never on seams, tape, shrink wrap or the underside
• Apply labels to at least two faces of a pallet, positioned so they face outward on forklift handling
• Use label pouches where shrink wrap is unavoidable
• Verify barcode prints dark and crisp — faint or pixelated prints fail scanners

How Good Packaging Reduces Freight Costs

Packaging improvements pay back faster than almost any other freight cost-reduction lever. A carton size optimisation project typically delivers 5 to 15 per cent savings on total carton spend. A pallet build discipline project typically eliminates 70 to 90 per cent of reweigh adjustments.

• Lower chargeable weight through accurate dimensions and efficient carton sizing
• Fewer reweigh and reclass adjustments on the monthly invoice
• Reduced damage, claims and return freight
• Faster depot processing and consistently made linehaul cut-offs
• Less manual handling and fewer DIFOT failures