IBC ToteMarketEST. 2009
Sustainability · 7 November 2023 · 8 min read

What 93% Reuse Actually Costs Us

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Marguerite OkonkwoOperations lead
diversionunit economicsfabrication
Short answer

The first 80% of reuse is a wash line. The next ten points need a rebottling bench and a fabrication shop, and the last two or three need a formal rule that stops people taking the easy decision. Capital cost of the last twelve points: roughly $340,000 over five years, with a payback under three.

A diversion rate is easy to state and expensive to move. We publish 93% reused, 7% recycled, 0% landfilled, and the interesting part of that sentence is not the first number — it is how much each of the last twelve points cost.

The first eighty points are a wash line

Most of what arrives on a grading pad is fine. It held something benign, it has a legible plate, the cage is square and the bottle holds an air test. Wash it, replace a gasket and a valve, test it, sell it. That is the bulk of the business and it is not difficult.

In 2014 we were at 71% reused with a hose and a wand. Commissioning a closed-loop caustic line in 2016 took us to 78%, mostly by letting us accept residues we had previously declined — oil, latex, heavy detergent. The line cost about $120,000 and paid back in under two years, because every tote it saved was a $190 sale instead of a $12 scrap ticket.

Points eighty to ninety: rebottling

The next obstacle was bottles that could not be washed to any useful standard — cured residues, severe dye penetration, bottles with crazing — sitting inside cages that were perfectly good steel.

Scrapping those units destroys roughly 80 lb of galvanised steel to dispose of 38 lb of compromised polymer, which is backwards: about 70% of an IBC's embodied carbon is in the steel. A rebottling bench fixes it: teardown, weld and geometry inspection, a straightening jig, an abrasive blast cabinet, a spray booth for zinc-rich primer.

Cost: about $95,000 in 2018, mostly the blast cabinet and the booth. It took us from 78% to 81% in its first year and to 84% once the operators got quick. Payback took three years rather than two, because rebottled units sell more slowly than Grade A ones.

Points eighty-four to ninety-two: fabrication

Then we hit the real wall. There was a residue of units — call it 16% of intake — that could not be washed and could not be rebottled, usually because the bottle was crazed badly enough that it would not hold pressure and the cage was out of square beyond jig recovery.

The honest insight here was embarrassingly simple. A bottle that will not hold 2,400 lb of water under hydrostatic load will quite happily hold sixty cubic feet of compost for a decade. A cage that is too far out of square to take a new bladder is still good galvanised tube for a stand or a planter frame.

The fabrication shop opened in 2019: heated-blade cutting jig, welding bay, bulkhead drilling, later a TIG station and a passivation tank for stainless. About $125,000 including the building work.

Reuse rate by year and what drove it
YearReusedRecycledDriver
201471%27%Hose and wand; 2% still landfilled
201678%22%Closed-loop caustic line
201881%19%Rebottling bench
202086%14%Fabrication shop, first full year
202290%10%Second-look review formalised
202492%8%Steel pallet recovery
202593%7%Current operating level

The last points cost nothing and were the hardest

In 2022 we wrote down a rule: nothing enters the regrind bunker until a second grader, who did not make the first decision, answers no to four questions. Can the bottle hold liquid at atmospheric pressure? Can the cage be sold as cage-only or cut into a frame? Can the pallet base be recovered for a swap? Is there a fabrication build this suits?

That rule cost us a signature line on a form. It immediately pulled about 11% of the scrap-routed stream back out, which is roughly two percentage points of total intake.

Why it worked is uncomfortable. The equipment had been there for three years. What was missing was a mechanism to stop a tired grader at four o'clock on a Friday taking the easy decision. The capital was never the binding constraint; the default was.

What the whole thing cost

About $340,000 of capital over five years to move from 81% to 93%, plus the operating cost of a slower, more labour-intensive process. Payback across the programme has been under three years, and that is before counting the two things we did not model.

First, the fabrication shop turned into a product line. Catchment banks, compost brewers, wash stations and planters are now a meaningful share of revenue, and they came from a cost-avoidance project.

Second, the diversion statement. Fleet customers want a number they can put in a sustainability filing, and ours is auditable, which has won accounts we would not otherwise have been shortlisted for.

The honest gap

We are not at 100% and will not get there. Valves and gaskets — under half a pound per unit, a mixed assembly of polypropylene, EPDM and sometimes a metal insert — have no outlet at our volumes. We stockpile them rather than bury them, and the stockpile is about four tons. It is the one part of this story that is a problem rather than an achievement.


881 words · published 7 November 2023 by Marguerite Okonkwo, Operations lead at IBC Tote Market LLC. We correct posts rather than quietly deleting them; if something here is wrong, tell us and we will say what changed.

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