Groupage or consolidated cargo is a type of cargo that combines several small consignments of goods from different consignors into one vehicle for more efficient transportation. This approach allows you to reduce transportation costs and optimize the use of transportation resources.
Main aspects of cargo collection and consolidation:
Cost savings: Groupage allows shippers to share the cost of transporting, storing and handling cargo with other companies, reducing overall logistics costs.
Optimization of cargo transportation: Combining cargo from different senders in one transportation increases the efficiency of using the vehicle, reducing the frequency of empty flights and maximizing the occupancy of the vehicle.
Reduction of risks: Groupage can reduce the risks associated with transportation, since the goods combined in one transportation have common conditions of transportation and handling.
Flexibility in transportation: Consolidated cargoes allow for flexibility in the delivery of goods, in particular, the possibility of sending smaller batches of goods without the need to fill the entire vehicle.
Consolidation Process: During cargo consolidation, companies or logistics operators combine small batches of goods into one cargo container or vehicle. Cargoes can be combined in special warehouses or terminals, where they are coordinated and prepared for transportation.
Documentation: For groupage, it is important to have accurate documentation that confirms the origin, quantity and value of the goods. Usually, one general waybill or documentation is used for all the consolidated cargo, which facilitates the process of customs clearance and processing.
Usage example:
Let’s imagine that several companies located in different cities want to send their goods to the same distributor in another country. Instead of each company sending their goods separately, they can use the services of a logistics company that will combine these goods into one container or vehicle. This makes it possible to reduce transportation costs and simplify cargo processing at customs.
Groupage or consolidated cargo is an important part of modern logistics, providing cost-effective and efficient transportation for companies of all sizes.
