Cost of Hemp Logistics
Everyone has the same question about hemp logistics; how much will it cost? So, lets make it simple by giving you an example shipment. For this example, we will be shipping 1 pallet (Three 55 gallon drums shrink-wrapped to a standard size (40*48) pallet.) from Medford OR to Denver CO. The weight will be 1000 kg’s plus the weight of the pallet.
The total distance is 1,311 miles and the ideal vehicle to ship this in is a dedicated Sprinter Van. Sprinter Vans can hold up to 3500-4000 lbs of weight and have the capacity of 3 pallets on average. They are more ideal than a box truck or a 53’ Dry van because they are not confined to the DOT’s elog drive times. So they can cover 1000-1200 miles in a day. Not perfect for this shipment that is going 1,311 miles. Our driver would need 1.5 days to get to Denver safely. Sprinters are also dedicated, meaning they will only haul your hemp products. No chance of trans-loading damage or other cargo puncturing a hole in one of your buckets/barrels. Once you load it into the van, it will not be touched until it arrives.
The line-haul for a 53’ Dry Van as of August 12th, 2020 is at $3800 and $2900 for a box truck. Sprinters will cost you $1800 or possibly less if we have more availability. Drivers are educated on the commodity and will be given the proper paperwork to complete this shipment safely. Fide Freight will be watching over the shipment (day and night) to ensure a smooth delivery. When compared to LTL, sprinters may be more in cost, but the service they come with, damage and transit risk-mitigation, and expedited transit time may be beneficial in a time of uncertainty. Our hemp logistics team will allow you to know the final cost, know it will deliver, know that it will show up with no damage. Reach out to our hemp logistics department today and ask use the difficult questions.
Other Things to Consider
Distance is a very important factor in price. Coast-to-coast shipments are cheaper per mile than local runs. It is important to remember, whether you are going a long way or running 50 miles down the road, you will still be paying for the drivers time.
Location is another factor that impacts the price. We get a lot of shipments that pick up in Wyoming, Colorado, Utah, and other states that do not have a very dense population. This can cause the rate to come up because drivers tend to be situated around bigger cities where loads are most likely to appear. We would essentially have to pay them to drive out and get the shipment (deadhead). This rule also applies to deliveries in remote areas. If you are 200+ miles away from a major city, be prepared to pay a little more than the usual rate.
Capacity is the final constraint to consider/understand. Drivers are constantly moving all over the country. When you have a surplus in one city, then the price goes down. The drivers will compete for loads. If you have a shortage of drivers in a city, then the price goes up because the driver will have their pick of the lot. The highest paying freight will be moved first.
Insurance has been a tricky subject for a lot of valued shippers. Most of the time, carriers/logistics company’s will boast about their $500,000, $1,000,000, or even $2,000,000 insurance coverage. I think the real question is, can they put CBD Hemp Oil, Hemp Flower, or Biomass as the commodity on their certificates? Probably not. Most insurance company’s will fight tooth & nail before allowing hemp or CBD products onto their list of approved commodities. Fide Freight has $100,000 in base cargo insurance (free) and will obtain up to $5,000,000 in coverage with a certificate showing CBD Hemp Oil, Hemp Flower, or Biomass and your name. We come with complete transparency to help you find the logistics solution you deserve. To see our insurance pricing, please visit our Insurance Calculator here.
Fide Freight has been recognized for our excellence in hemp transportation in Hemp Benchmarks, Hemp Today, and a few smaller outlets. We have helped over 200 customers with hauling hemp bales, biomass (supersacks), hemp flower, crude, distillate, isolate, and more.
We hope that this article sheds some light on shipping hemp oil, T-Free distillates, isolate, hemp flower, biomass or any other CBD products.. We are always fighting to get you the best price with the best service. Fide is a family-owned and operated company with strong values on the relationships we create. Give us a call and see how we can help you. Click here to get a quote