Cross-Dock vs Direct Ship Calculator โ Consolidation Savings Analysis
Calculate whether cross-docking saves money vs direct shipping for your network. Consolidation freight savings vs handling cost โ find the break-even and optimal model.
๐ Cross-Dock vs Direct Ship Cost Calculator
How to Use This Calculator
- Enter direct vs consolidated rates โ what does LTL cost per pallet direct vs FTL/pool after consolidation?
- Enter cross-dock handling cost โ labour, dock space, scanning, and administration per pallet.
- Add inbound cost โ getting freight to the cross-dock from origin โ don't forget this leg.
Worked Example
400 pallets/month. Direct LTL: $85/pallet. Cross-dock: $18 inbound + $22 handling + $52 consolidated = $92/pallet.
- Saving per pallet: $85 โ $92 = โ$7 (direct is cheaper!)
- Annual impact: โ$33,600 (cross-docking costs more)
At $22 handling, cross-docking needs to cut outbound rates by $30+/pallet to justify the handling cost. If consolidated rate was $45 instead of $52, cross-docking wins by $10/pallet = $48,000/year. Consolidation ratio is everything.
Frequently Asked Questions
When freight consolidation reduces outbound cost by more than handling cost. Works best when: multiple origins shipping to the same destinations (retail distribution), LTL lanes that could become FTL after consolidation, and outbound lanes are 200+ miles (short lanes don't save enough to cover handling).
Manual cross-dock: $15โ$35/pallet. Mechanised (conveyor/sorter): $8โ$18/pallet. Fully automated: $5โ$12/pallet. Key cost drivers: labour rate, technology investment, and throughput volume (higher volume = lower unit cost).