At a time of dramatically rising costs on every front, businesses everywhere are seeking to reduce their overheads. And one obvious area that has the potential to save importers and exporters money is freight movement. But this doesn’t necessarily mean putting your faith in less established providers, or reducing security standards. In many cases, it’s possible to work with the same, trusted logistics company, but to swap to a different service. And for businesses that don’t always need to send a full load, groupage may be the answer.
What do You Need to Know About Sending Freight Via Groupage?
What is groupage?
Groupage is a freight transport service that involves a logistics provider carrying consignments from multiple customers to the same destination region, in one trailer. Goods are grouped together in a system of like with like, to ensure that no incompatible products are carried together. It can be used for a whole range of cargo categories, with the only limitation being on perishable goods.
What is the advantage of using groupage?
The primary reason businesses turn to groupage is because it is highly cost-effective. Rather than pay for an entire load, you are simply paying for the space on the trailer that your goods take up. Depending on how many other businesses are able to fit their goods in with your cargo, there is real potential to reduce your costs.
When would you use groupage?
While groupage is great for sending any freight that will take up less than half a trailer (for larger consignments that won’t fill a trailer, part loads may be a better option). It is particularly useful for businesses that send and receive goods from multiple destinations. So, if you have clients in Germany, Spain, and Italy, groupage enables you to send smaller loads more frequently. Helping you to provide a better customer experience.
How does groupage work?
So, as we’ve already discussed, groupage involves carrying consignments from a range of suppliers, going to the same locality. We manage this by collecting the cargo and storing it in our secure warehouse before organising it into compatible loads. Compatible goods are matched, loaded, and prepared for dispatch. Once in the destination country, each container will be delivered to its specific destination.
How long does groupage take?
As with all shipment methods, groupage delivery times vary, according to the destination. Goods shipped to Italy, for example, will always take longer to reach their destination than those shipped to Germany. But three days is the average delivery time for groupage shipments.
Sending freight via groupage won’t be an option for every business. If your cargo is perishable, time-sensitive, or likely to take up more than half a trailer, other options would make more sense for you. But if you generally work in smaller loads, ship to multiple destinations, and have a small degree of flexibility when it comes to delivery times, groupage could provide the perfect, cost-saving freight solution for your business.
Get in touch with Plexus Freight to find out if groupage is right for your business.