Most businesses switch to pallets for one reason. Someone told them it was cheaper. Sometimes it is. Sometimes it costs more, and nobody explains why.
Here is the short answer on pallet vs carton shipping: palletising usually saves money when you send many cartons to one address, when cartons are heavy or awkward, or when per-item fees and damage are eating your margin. Loose cartons usually win when you send a few light boxes, to many addresses, or to places without a forklift.
At NLM, we quote both ways for clients all the time. This guide shows you the maths we use, so you can make the call yourself.
Loose Cartons vs Palletised Freight: What's the Difference?
Loose carton freight means every box is booked and handled as its own item. Each carton gets its own label, its own scan and its own trip through the depot.
Palletised freight means you stack those cartons on one pallet, wrap them, and ship them as a single unit. In Australia that is usually the 1165 x 1165 mm standard pallet. A forklift moves it, and the network treats it as one item.
Think of it like groceries. Ten loose bags are easy to lose one of. One trolley is harder to lose, but you need room to push it.
How Carriers Actually Charge You
Before you compare, you need to know what you are paying for. Most Australian carriers charge on chargeable weight. That is the higher of two numbers:
- Dead weight: what the goods weigh on a scale.
- Cubic weight: how much space they take up, turned into kilograms.
For parcels, a common Australian conversion factor is 250 kg per cubic metre. So a carton's cubic weight is length x width x height (in metres) x 250. Some road freight services use a higher factor, such as 333 kg per cubic metre. Always check which one your quote uses.
Pallet freight is often priced differently again. Some carriers charge per pallet or per pallet space, with limits on height and weight. Others still use cubic weight across the whole pallet. If cubic weight has ever caught you out, read our guide to how dimensional weight disputes really work.
A Worked Example: Does Palletising Lower Your Weight?
Here is the part most guides skip. Putting cartons on a pallet does not make them lighter. It often makes them heavier on paper.
Say you ship 18 cartons. Each is 58 x 38 x 30 cm and weighs 10 kg. At 250 kg per cubic metre, each carton's cubic weight is about 16.5 kg. That is more than its dead weight of 10 kg, so you pay on cubic.
As 18 loose cartons | As 1 pallet (3 layers of 6) | |
|---|---|---|
Dead weight | 180 kg | About 210 kg (180 kg of goods plus a pallet of roughly 30 kg) |
Size | 18 x 0.066 m³ | 1165 x 1165 x 1050 mm = 1.43 m³ |
Cubic weight at 250 kg/m³ | About 298 kg | About 356 kg |
Cubic weight at 333 kg/m³ | About 396 kg | About 475 kg |
Chargeable weight | Cubic wins | Cubic wins, and it is higher |
Why is the pallet higher? The pallet adds its own height and weight. And the gaps between your cartons and the pallet edge still count as space. You pay for the whole cube.
So if the pallet is not cheaper by weight, where do the savings come from? From how the carrier prices it, and from what does not go wrong. That is next.
Where Pallets Actually Save You Money
1. Fewer handling touches
Every loose carton is scanned, sorted and lifted at each depot. More touches mean more chances to drop, crush or misroute a box. A pallet is one scan and one forklift move. Fewer touches often means less damage.
2. No lost cartons
Send 18 cartons and one goes missing? The whole order is now late. Wrapped on one pallet, the cartons arrive together or not at all. For B2B deliveries, that matters a lot.
3. Per-pallet pricing
When a carrier prices per pallet space, a full, well-built pallet can cost less than the same goods sent as a pile of cubic-rated cartons. This is where the break-even point usually sits. The fuller and heavier your pallet, the more it tends to favour palletising.
4. Heavy or awkward cartons
Parcel networks have limits. For example, Australia Post caps domestic parcels at 22 kg and 105 cm long. Cartons over those limits get pushed into freight anyway, often at a higher rate.
5. Faster receiving
Warehouses, retailers and 3PLs often prefer pallets. One pallet can be booked into a dock and put away in minutes. A pile of loose cartons takes longer to check in.
When Loose Cartons Still Win
Pallets are not always the answer. Stick with cartons when:
- You send only a few boxes. The pallet, wrap and labour cost more than they save.
- Your cartons are small and light. Parcel networks are built for this and move it fast.
- You ship to many addresses. A pallet has to go to one place. Cartons can go anywhere.
- The receiver has no forklift. You may need a tail-lift truck, which often adds a fee.
- It is going to a home. Residential drop-offs suit cartons much better than pallets.
- Your load would be a half-empty pallet. You pay for the air. A short, light pallet is often the worst of both worlds.
For regular carton volumes, our business parcel delivery service is built for exactly this. And good packing still matters, so see our parcel packing tips to cut breakage.
The Break-Even Check: Pallet vs Carton in 5 Steps
Here is the simple method we use when a client asks us to compare. Run it on a real shipment.
- Work out carton chargeable weight. For each carton, take the higher of dead weight and cubic weight. Add them up.
- Price it as cartons. Include every per-item fee, fuel levy and any heavy-item surcharge.
- Plan the pallet. How many cartons fit per layer? How many layers? Measure the finished height.
- Price it as a pallet. Add the pallet (bought or hired), wrap, labour and any tail-lift or forklift fees.
- Add the risk. How often do cartons go missing or arrive damaged? Put a rough dollar value on it.
If the pallet total is lower, palletise. If it is close, think about damage risk and what your receiver prefers.
Pallet vs Carton: Quick Decision Table
Your situation | Lean towards |
|---|---|
A few light cartons | Cartons |
Many cartons to one business address | Pallet |
Cartons over 22 kg or very bulky | Pallet (or freight service) |
Shipping to homes | Cartons |
Many different delivery addresses | Cartons |
Fragile goods, damage keeps happening | Pallet |
Receiver is a warehouse, 3PL or retailer DC | Pallet |
No forklift at pickup or delivery | Cartons, or pallet with tail-lift |
Load would be a short, half-empty pallet | Cartons (check both prices) |
One more guide point: some carriers expect a pallet once freight is heavy or big. TNT Australia, for example, says items over 70 kg or larger than 2.4 x 1.2 x 1.5 m should be palletised. Other carriers set their own rules.
Making the Switch to Pallets? Do It Right
If the numbers say pallet, build it well. A tall, wobbly or overhanging pallet can be marked non-stackable and cost you more, which wipes out the saving. Our step-by-step guide on how to prepare a pallet for shipping covers stacking, wrapping and labelling.
If you sell online and your volumes are growing, mixing both can work best. Many businesses send pallets to their warehouse or 3PL, then ship cartons to customers from there. See how our ecommerce shipping solutions handle that.
Why Comparing Carriers Changes the Answer
Here is the catch. The break-even point is not the same for every carrier. One may be cheap for cartons and dear for pallets. Another may be the reverse. The same load can flip from "cartons win" to "pallet wins" just by changing carrier.
That is why we use multi-carrier shipping to quote both options across several carriers at once. When you are ready to test your own shipment, get a quote both ways.
Frequently Asked Questions
Is it cheaper to ship on a pallet or as cartons?
It depends. Pallets often win for many or heavy cartons to one address. Cartons often win for a few light boxes or many addresses. Price both.
Does a pallet increase cubic weight?
Often, yes. The pallet adds height and weight, and gaps around cartons still count. Savings usually come from pallet pricing and fewer handling fees.
When should I use pallet freight?
Use pallet freight for many cartons going to one business, heavy or bulky goods, fragile loads, or deliveries to warehouses and 3PLs that prefer pallets.
What is the difference between palletised freight and parcel freight?
Parcel freight moves each carton on its own. Palletised freight stacks cartons on one pallet and moves them as a single unit by forklift.
How many cartons do I need before a pallet makes sense?
There is no single number. It depends on carton size, weight, lane and carrier. Run a break-even check on both prices for a real shipment.
Final Thoughts
Pallet vs carton shipping is not about which one is "better". It is about which one is cheaper and safer for this load, on this lane, with this carrier. Do the maths once on a real shipment, and you will know.
When your volumes grow, see how our pallet shipping services can take the guesswork out.
