How Long Is the Payback Period? A Practical Way to Estimate Freight Savings from Higher Bale Density

Export-oriented recyclers often ask:

“If I invest in a better baler and increase bale density, how much ocean freight can I really save? How long will it take to pay back the investment?”

To answer this, you need a simple, repeatable calculation method, plus a typical baler configuration as a reference.

1) Step one: record key data from your current setup

Collect data for your current baling scheme:

• Average bale dimensions (for example, a footprint of about 1100 × 1200 mm, with height measured from actual production);

• Average number of bales per 40HQ container;

• Average tons per container (actual weight);

• Total freight cost per container (base rate plus surcharges).

After a few shipments, you will have a stable “baseline” for your current operation.

2) Step two: simulate a higher-density baling scenario

Suppose you consider upgrading to a baler with stronger compaction, such as a typical 125-ton horizontal OCC baler:

• With a main cylinder YG250/180-4200, two door cylinders YG125/80-1200, a working pressure around 25 MPaand an A7V-160 + YCY25 pump group, the baler can achieve higher density at the same bale size;

• A feeding opening of 2200 × 1100 × 1100 mm and a bale footprint of about 1100 × 1200 mm (L × W) allow you to optimize stroke and loading to move from “medium” to “medium-high” density;

• In real operation, average bale weight can typically increase by a noticeable percentage range, though exact values must be confirmed by weighing.

Under this scenario, you can estimate:

• With bale dimensions unchanged but density increased, each container can carry more tons;

• If you pay freight per container, then freight cost per ton = container cost ÷ tons per container, which naturally drops as tons per box rise.

3) Step three: convert freight savings into annual benefit

• Subtract your old tons per container from the new tons per container to get extra tons per container;

• Multiply by your annual number of containers to get extra “effective tons” shipped each year;

• Use the difference in freight cost per ton to estimate the annual freight savings.

For example:

• If higher-density baling gives you a reasonable increase in tons per container, and you ship dozens or hundreds of containers per year, the total savings can cover a significant portion of the cost of a 125-ton baler;

• When you add improvements in labor efficiency and yard turnover, the actual payback period is often shorter than it first appears.

Summary

Upgrading your baler is not just about “feeling better” about your equipment; it is a data-driven decision:

1. Use real shipment data to record current bale weight, tons per container and freight cost per ton;

2. Use a configuration like a 125-ton horizontal baler as a reference, test higher-density bales and determine a plausible improvement range in tons per container;

3. Scale this difference by your annual container volume to get the order of magnitude of freight savings, and compare it to your investment.

Once you complete these three steps, the payback period for a baler upgrade is no longer a guess—it becomes a clear number you can show to yourself, your partners or your finance team.