Craig Neal founded Diamond Level Service in 2010 to help companies not only make a better impression at trade shows and events but limit the problems and headaches of coordinating events that can take place hundreds or thousands of miles away from the company headquarters. His 40 years of experience in the event and trade show industry coupled with his staff’s attention to detail provide Diamond Level Service clients with a peace of mind that their exhibit will be done right and that there won’t be surprises with the costs associated with the show. In this article we cover trade show shipping costs.
Freight Costs Skyrocketed Since Pre-Covid
One of the more costly line items in a trade show budget is shipping your trade show exhibit and everything associated with it. Freight costs have always been a big factor in the budget but in the last few years they have doubled.
In 2016 the base cost of shipping one crate (4’ x 4’ x 10’ 1,000lbs) across the country was roughly $1/pound with our volume discount. This is something you could count on and often didn’t even need to put your freight costs out to bid. It was a somewhat predictable cost.
For example, you could ship a crate from Las Vegas to Daytona Beach for between $1,000 and $1,500 one way depending on the time factor. This would include the cost for the driver, the truck owners’ fees, and brokers fees. In 2023 and 2024 those costs have doubled and more to $2/$3 pound and higher. Now that same crate would cost between $2K and $3K.
What Factors are Driving Up Freight Costs?
One of the more costly line items in a trade show budget is shipping your trade show exhibit and everything associated with it. Freight costs have always been a big factor in the budget but in the last few years they have doubled.
In 2016 the base cost of shipping a crate across the country was roughly $1/pound. This is something you could count on and often didn’t even need to put your freight costs out to bid. It was a somewhat predictable cost. For example, you could ship from Las Vegas to Daytona Beach for between $2,500 and $5,000 depending on the size of the entire load and size of the trailer. This would include the cost for the driver, the truck owners’ fees, and brokers fees. In 2023 and 2024 those costs have doubled rising to $2/pound and higher.
Diesel Fuel
A lot of factors have changed since 2016. First and foremost is the cost of diesel fuel. The hard cost of getting a truck from one location to another has doubled due to many factors but diesel fuel is a big culprit.
Vehicle Insurance
Trucks and what is being pulled behind them must be insured. Commercial vehicle insurance rates have also doubled.
Demand for Truck Drivers
In response to the supply chain issues in the last several years, manufacturers have seen the advantages of shortening the supply chain by manufacturing and warehousing more of their products here in the United States. This trend is expected to continue. The number of trucks on the road to ship goods will need to catch up with this increasing demand. Because of this higher demand, shippers can and must charge more for their services.
Market Shifts and Destinations
When a truck hauls a load from one city to another, the operator or trucking company wants to have a load coming back to the home city. If there is not enough shipped from the destination city and the truck has no load coming back, you will be charged more for your load.
An example of this is shipping a load from California to an Orlando trade show. Currently because there are more people and companies moving out of California than into the state there is more freight coming out of California than being shipped in. Finding a load in Orlando going to California to fill up the truck alongside your trade show exhibit may be harder to find. Therefore, you will be charged more on the return trip. The opposite is true when shipping to a trade show in California and a return shipment to Florida. The initial shipment will cost more if the trucking company can’t fill their truck going to California.
Less Experience in the Industry Leads to
Higher Trade Show Shipping Costs
Covid left its mark on the trade show industry. The trade shows stopped and people that made their money in the trade show industry needed to quickly find another way to earn a living. It is estimated that 50% of the talent and experience left the industry and did not return post-Covid. So, you have less experienced people dealing with the shipping and handling of your exhibit. This often leads to less efficiency and a higher cost for you.
The same may be true within your company. If you have newer employees handling aspects of shipping and handling on your side, this compounds the issue. In efficiencies and mistakes can abound that lead to significantly higher costs.
How to Control Trade Show Shipping Costs
1. Know in Advance What You’re Shipping.
Planning and organization earlier versus later can help minimize last minute surprises.
2. Protect Your Shipment
Build crates and package your exhibit properly. If not done correctly, you can end up with damage to your exhibit that you won’t know about until it arrives at the show floor.
3. Send Your Shipment to an Advance Warehouse
This is key. You can ship your exhibit to an advance warehouse close to the exhibit site. General Contractors typically provide 30 days of free storage. Make sure your shipment arrives at the beginning of the 30 days. Why? Because it’s a first-in-first-out system.
The shipments that come in early will get shipped to the show site first. If your shipper needs to wait to unload, they will charge $50 to $100/hour wait time. The same situation will occur on the out. If your shippers’ truck needs to wait to load up your exhibit, you will be charged hundreds of dollars unnecessarily.
4. What If You Don’t Use and Advance Warehouse and Ship Directly to the Show Site?
If you can’t ship early to an advance warehouse and decide to ship directly to the show site, the shipment must first go to a Freight Marshalling Yard. If your shipment isn’t at the freight marshalling yard early on move-in day, it will need to wait in line behind those that did get there early until it is released to the show site. Delays can be a couple of hours up to the next day. At a wait cost of $50 to $100 an hour, this can be an expense that you weren’t anticipating and lead to dramatically higher trade show shipping costs.
Pro Tip
Have your exhibit ready to be shipped early enough so that it arrives at the advance warehouse (30 days free) as close to the beginning of the 30-day period as possible. Theis will avoid wait charges at a freight marshalling yard and the show site both on the in and on the out. And your exhibit will be at your location inside the show site when you get there on move-in day.
Pro Tip 2
You may also want to choose to use the general contractor of the show for shipping. The base shipping costs will be more expensive, but you are guaranteed not to pay wait fees.
Trade Show Shipping Costs Conclusion
If you feel that your company can handle these aspects of shipping and handling to the extent that there will be no damage to your exhibit, you will limit your wait fees, and the exhibit will be ready at show site when you arrive, then you can handle all of this yourself.
Please note that in his 40 years in the trade show industry, Craig Neal has seen many companies try to hire individual contractors for the various pieces of a trade show. They do so to save money but have limited experience and they end up paying more in aggravation, frustration, and cost.
However, if you don’t feel that you have the experienced staff to pull this off, then you should consider hiring Diamond Level Service. Diamond Level Service is an experienced Event Management Company that can handle all aspects of your trade show schedule and control trade show shipping costs. Diamond Level Service will design and build your exhibit, pack it, load it, ship it, and have it waiting for you when the doors open on move-in day.
You will perhaps pay more as a base cost for the show. However, with more efficiency there will be better margins. You will limit mishaps and fees due to those mishaps. You will eliminate headaches and can have reasonable expectations of a smooth trade show for your company.
To learn more about DIAMOND LEVEL SERVICE
and to speak with owner, Craig Neal:
Go to DIAMOND LEVEL SERVICE
Call 386-527-3373
Email [email protected]
Visit DIAMOND EDUCATION to learn more about the trade show industry or click the links below.
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