The Average Cost of Shipping

Transportation costs for bulk olive oil can range anywhere from $75 (across town) to $600 (across the country) per pallet. Think about where your olive oil will be shipping from (also known as the FOB point) when you’re determining a delivered cost.

As you're researching olive oil suppliers, it's important to know that there are a few different types of suppliers that you could choose. Below is a review of the two most common, the local distributor and the national supplier, because these are likely the two that you will be weighing.

Learn about Local and National Olive Oil Suppliers

A local distributor is a supplier that offers olive oil, sometimes among many other ingredients.  

If you’re a U.S. manufacturer, you’ve probably received your bulk olive oil in one of two ways:

1. from a U.S.-based company who ships oil to you by the pallet, or

2. from an overseas supplier who ships oil to you in a full container

There are pros and cons to each of these systems.  

Note: This is a continuation of a previous blog Bulk Olive Oil - Direct Delivery vs. Direct Delivery Programs. Please click here to read that article first for a thorough understanding.

As a first-time bulk olive oil buyer, you may find that the quotes you receive don’t include the cost of shipping. In the bulk sector, this is a common thing for suppliers to leave out of your initial price quote. If you’re not used to the ‘bulk buying world’ that can be frustrating. Here are some of the reasons why it’s initially left out:

What is A Direct Delivery?

A “direct delivery” (also known as a container shipment) is when a truckload of olive oil is delivered to you direct from the manufacturing site in the Mediterranean.  The cost of delivery is included, and the oil is often cheaper because you receive volume discounts.  

Bulk Olive Oil Pallet Calculations

If you’re looking at making a bulk olive oil purchase with Centra Foods, it’s important to know that our order minimums are one pallet.  A pallet is a large portable platform that the olive oil is stacked, stored and moved on.  It is typically 48”x48” or 48”x40”.  Items are stacked about 4-5 feet high, depending on which packaging you get.  

A price for bulk olive oil can be quoted ‘F.O.B.’ or ‘Delivered’.  Have you ever wondered what those terms mean?  A clear understanding is very important to allow you to to do accurate cost comparisons.

F.O.B. Pricing

F.O.B. stands for “Freight on Board” or “Free on Board” depending on who you ask.  This term indicates who pays the transportation costs.  

There has been a powerful shift in the food marketplace over the last ten years.  Empowered food consumers have an increased awareness of the journey that their food takes to get to their plate, which has sparked a new emphasis on buying local, selling local and eating local.

However, many food companies have found that it is best to purchase particular specialty items on a national scale, in direct opposition to the widespread focus on “local”. These businesses are discovering that by buying nationally, they can provide the most competitive prices, receive the most efficient shipping and still demonstrate their social commitment to reducing their impact on the environment.

The prevailing factor that provides efficiencies in this model is “how direct from the original source” each company is buying their palletized ingredients.