Groupage

When getting into container shipping, companies that are shipping can sometimes feel overwhelmed by the amount of space that a shipping container can hold. Two concerns that come about are: will their weekly shipments be enough to fill the containers or will they need to ship LCL. This is especially true for smaller products or time sensitive products. Many times, LCL can be incredibly expensive and depending on the product, when a container is half filled, it could be less costly or at least less hassle to pay for a full container instead. This is where groupage comes in. Groupage is when a freight forwarder ships more than one customer's goods together to create a full container. Usually they will try to keep within the same product area, type or volume. By using groupage, companies can send their regular shipments with comparatively low shipping prices and many of the forwarders are able to keep weekly sailings for these combined containers which can assist with scheduling. In fact that would be one of the
major points a customer should look for when seeking a forwarder to handle groupage. It is important that there are guaranteed weekly sailings and it is important that the forwarder keeps it in house only and does not outsource so that there is no confusion or separation of the good once submitted for groupage. Groupage can be a great way for companies to move their cargo at low freight costs and minimal concerns since the containers are handled just like a full container. If done properly, this type of shipping can be a win-win for all sides.