A logistics warehouse full of palletised goods

What Is Logistics Warehousing?

Warehousing is not just "renting space"; it is managing the goods' waiting period.

Storage and Stock 3 min read

Logistics warehousing is the planned management of the waiting period between the moment a product is made and the moment it is consumed. Providing space is only one part of the job; the real work is records, protection and the shipment plan.

The type of warehousing varies with the legal status of the goods and with the need.

The main types of warehousing

Types of warehousing
General depotGoods in free circulation; no customs supervision
Bonded warehouseDuty-deferred goods under customs supervision
Cold storeTemperature-controlled products
Open yardItems unaffected by weather
Cross-dockDirect transfer without storage

Forms of storage

The physical properties of the product determine how it is kept:

  • Racking: palletisable, boxed and medium-weight products
  • Pallet stacking: many pallets of the same product
  • Floor stacking: heavy, rollable loads such as steel coil
  • Open yard: pipe, sections and items that withstand weather

What makes a good warehouse

Not the price per square metre, but record discipline. The difference between the quantity found in a count and the quantity in the records must be zero.

The second criterion is the protection regime: a suitable arrangement must be provided for products sensitive to moisture, impact and temperature.

Bonded warehouse or ordinary depot?

If the goods have been imported and the duty paid, an ordinary depot is enough. If the goods have not been imported and you want to defer the duty, a bonded warehouse is required.

The decision starts with the legal status; the cost comparison comes after that.

Frequently Asked Questions

Questions About This Page

How is the storage charge calculated?

Usually per m² or per tonne, by period. Handling and loading/unloading are separate items.

Own warehouse or buying a service?

If volume is steady and high, your own warehouse; if it fluctuates and is seasonal, buying the service is usually more economical.

What is cross-docking?

Transferring goods straight from the incoming vehicle to the outgoing one without taking them into storage. It eliminates storage cost but demands precise planning.

What should I look at when visiting a warehouse in person?

Start with four things that depend on your cargo type: floor load capacity, clear ceiling height, the vehicle entry and exit layout, and the handling equipment on site. Moisture and water protection, fire precautions and how stock records are kept matter just as much. The quickest read comes from seeing how a load similar to yours is actually stacked.

Who is liable if the goods are damaged in the warehouse?

Liability is defined by the contract and the insurance policy, so ask for both in writing before you sign. The operator's liability cover and the cargo insurance on the goods themselves are two different things and one does not replace the other. Ask what the policy covers, its limit and its deductible, and have anything unclear confirmed by your insurance broker.

Do goods that have already cleared customs need a bonded warehouse?

No: once customs formalities are complete and the goods are in free circulation, an ordinary warehouse is enough. A bonded warehouse is for goods still under customs supervision, and its main benefit is deferring duties and formalities until the goods leave the facility. If you are not sure which status your goods are in, have it confirmed by your customs broker.

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Do you need help with this?

Tell us about your cargo or your product requirement and we will talk through how what this article describes applies to your own case.