Groupage cargo is a profitable way for a company to save on international logistics. However, you should not rush even with such a cheap method of transportation, because it has many subspecies and some nuances.
Groupage cargo is: a simple definition and the essence of cargo consolidation
Groupage cargo is a delivery in which consignments from several clients are combined into one for convenience and cost-effectiveness of transportation. The client pays only for the space of his consignment (volume and weight), and does not completely rent a separate vehicle.
Advantages of groupage cargo:
- significant savings;
- speed;
- wide geography;
- flexibility;
- minimal risks.
It will not be possible to send perishable products or substances that cannot be combined with each other by groupage cargo. Therefore, it is important to analyze compatibility before sending.
What types of goods are most often placed in groupage cargo:
- orders from online stores;
- industrial equipment and spare parts;
- building materials;
- pharmaceuticals, medical equipment;
- household chemicals, cosmetics;
- furniture and interior items.
Delivery of groupage cargo will be especially profitable for small and medium-sized businesses with small batches and small-sized cargo. Often, groupage cargo is used by online stores and companies that are actively engaged in export and import.
How groupage cargo delivery works: stages from pick-up to delivery
Most often, for the transportation of groupage cargo (consolidated), it is necessary to use powerful transport and a modern warehouse.
How groupage cargo delivery is carried out step by step:
- a logistics company accepts applications for transportation;
- consolidation of cargo – receipt of products from different manufacturers, usually at a warehouse;
- the necessary documents and their compliance are checked;
- the cargo is weighed and marked;
- a common container or truck is formed;
- loading;
- delivery in one trip to the destination (to the customs terminal, recipient’s warehouse, etc.).
If the transportation of consolidated cargo is carried out by an experienced logistics company, it will accompany the delivery with continuous tracking and timing control.
Consolidated cargo and additional cargo: what is the difference in simple words
Consolidated cargo and additional cargo are different concepts that mean slightly different types of transportation. Although in both cases it is consolidated cargo that is involved.
Additional cargo – this type of delivery is also called “passenger cargo”. The bottom line is that the client’s shipment is loaded onto a vehicle that is already on the road and has free space. Payment is made only for the space and weight actually used.
The main principles of consolidated cargo (additional cargo):
- there is no consolidation warehouse;
- the route has already been built and is being carried out;
- there may be no clear schedule.
Additional cargo is suitable for non-urgent and small batches. It is better to perceive additional cargo as a situational solution, rather than systematically entrusting deliveries to this mode of transportation.
LTL vs FTL delivery: what to choose for road transportation
FTL delivery is a transportation format that is completely different from groupage cargo. After all, FTL is the complete filling of a truck with the products of one customer. Accordingly, transport works only for one client – along a single route, without consolidation and other people’s orders. It is not surprising that individual FTL delivery provides maximum control over transportation and the clearest terms.
LTL delivery is the transportation of groupage cargo with partial occupancy of the transport. That is, the client’s order takes up only a certain part of the truck, and the remaining space is used for cargo from other customers.
LTL cargo delivery takes longer than FTL, because time is also spent on consolidating shipments. However, LTL is much cheaper, because the cost is shared between several clients.
Which type of shipment to choose for road transportation:
- LTL delivery of groupage cargo is a purely automobile transportation format;
- FTL delivery – suitable for road transport, especially if the order takes up 60-70% of the car;
- LCL transportation – not applicable for road transport, only for sea and air deliveries.
Next, let’s take a closer look at what LCL cargo delivery is and why it is not used for cars.
LCL transportation: what does LCL cargo delivery mean and how does it differ from FCL
LCL delivery always means a container. It contains consolidated cargo, so LCL is a partial loading of a container, because the cargo of one client takes up only a certain part. Without a container, LCL does not occur.
How does LCL delivery differ from FCL:
- the container is shipped by sea;
- not profitable for urgent transportation;
- not suitable for large batches, urgent orders, fragile or expensive goods.
But these formats have a lot in common. LCL is also cheap and requires a consolidation warehouse. It is especially recommended to choose
LCL for the first or test deliveries.
Groupage cargo calculation: what determines the price
To find out the exact cost, it is better to contact professionals. They will select the optimal conditions for each business and specific requests.
What affects the calculation of groupage cargo:
- route and distance;
- volume and weight of the goods;
- terms (urgency);
- cargo specificity (is it dangerous, oversized, fragile);
- type of transportation – LCL or LTL;
- seasonality and traffic of roads, ports, terminals, etc.
In some cases, additional services may be required that will increase the cost. This may be extended storage in the warehouse, insurance, customs support and registration of certificates and other documents. Delivery “to the door” will also cost more.
How does a logistics company determine the price of groupage cargo delivery:
- conducts a consultation;
- specifies the volume and type of cargo;
- develops a route;
- sends a calculation;
- specifies which documents need to be additionally issued;
- carries out delivery and assigns a personal manager to the client.
For groupage cargo, it is better to choose logistics companies with their own modern warehouses, a diverse fleet of vehicles and a wide partner network.
Delivery times for groupage cargo: why it can be longer and how not to miss the deadlines
Examples of approximate delivery times for groupage cargo:
- Ukrainian cities – from 1 to 2 days;
- From Europe – from 5 to 10 days by car (LTL);
- China – from 25 to 40 days (depending on the type of transport, air transportation from China can be much faster and more expensive);
- The USA – 10-15 days for air, 45-70 – for sea transportation LCL.
There are not so many options for not missing the deadlines, but they are all effective. For example, prepare all documents in advance, do not neglect packaging and labeling, and also always include a reserve in the budget and deadlines.
A guaranteed way to not miss the deadlines and reliably deliver the goods is to contact transport and logistics companies. Professionals will do everything for the client, avoiding all risks, unnecessary costs and delays.
What delivery terms does TVL offer:
- delivery of groupage cargo from Germany to Ukraine (Kiev) – from 5-7 days;
- groupage cargo from Poland – from 48 hours;
- the company’s geography also covers other key supply areas – China, the Netherlands, Italy, the Czech Republic, France.
TVL will provide a full cycle of support: packaging, labeling, insurance, documents, loading, delivery, unloading.
Conclusion
Groupage cargo can be profitable for business only with careful planning. Therefore, it is safer to turn to professionals. At a minimum – for consultation, and at most – for a full cycle of transportation services.
