How Groupage Freight Transport Helps Reduce Transportation Costs

What Is Groupage Freight?

Imagine the following situation: a truck has space for 33 pallets, but Company A only needs to ship 2 pallets from Latvia to Germany. If the company books an entire truck, it would essentially have to pay for the whole vehicle, even though only a small part of its capacity would be used.

In this situation, groupage freight transport can be a more cost-effective solution.

For example, Company B needs to ship 12 pallets to Germany, while Company C needs to ship 19 pallets. A logistics company combines these shipments in one vehicle, and each customer pays for the space occupied by their cargo and the costs associated with its transportation.

Therefore, Company A pays for its 2 pallets rather than for the entire truck.

This is the basic principle of groupage freight transport – the capacity of one vehicle and the associated transportation costs are shared between shipments from several customers.

When Should You Choose Groupage Freight Transport?

Groupage freight transport is most often suitable when there is no need to use the full capacity of a truck. If you only need to ship a few pallets, packages or a single piece of equipment, there is no need to reserve an entire vehicle for one shipment.

However, groupage freight is not always the most suitable solution.

For example, direct transport may be more suitable for particularly fragile or sensitive cargo, as groupage shipments may be handled several times during transportation. Similarly, groupage transport may not be the best choice if the cargo needs to reach its destination within a very short timeframe.

Groupage freight transport is particularly suitable when:

• a small volume of cargo needs to be shipped;
• an entire truck is not required;
• the delivery is not urgent;
• optimising transportation costs is important.

Need to ship your cargo right away? Get a quote within 45 minutes!

To reach your goals even faster, fill out the Diamond Connected order form, provide the cargo destination and any additional information, and receive a freight transport quote within just 45 minutes!

If you need to arrange transportation for specific cargo, take a look at our international freight transportation service.

How Does Groupage Freight Transport Work?

1. The carrier collects the cargo from the companies

For example:

2 pallets are collected from Jelgava, 12 from Ventspils and 19 from Liepāja.

2. Consolidation takes place

Depending on how the transportation is organised, the cargo is taken to a logistics terminal, where it is inspected, scanned, sorted and prepared for further transportation.

(This process is known as consolidation.)

3. International transportation

The cargo is transported to the destination country.

4. Deconsolidation

If the transportation involves a terminal, the cargo is sorted at the destination terminal and prepared for delivery to the respective recipients.

5. The customer receives their cargo.

Since the process involves several stages, questions about cargo safety may naturally arise.

Are Groupage Freight Shipments Safe?

Groupage freight transport can be a safe solution when the cargo is properly packaged, secured and labelled, and the transportation is organised by an experienced logistics company.

A professional logistics company properly secures the cargo, labels each shipment and uses warehouse management systems to identify and prevent shipments from being mixed up. Shipments can also be tracked throughout the entire route until they reach the recipient.

As mentioned above, groupage shipments may involve more handling than full truckload shipments, which makes high-quality packaging particularly important.

Groupage freight is often a cost-effective solution for reducing transportation costs when there is no need to use the full capacity of a truck. Of course, the price is not determined solely by the number of pallet spaces allocated, but when a company does not have enough cargo to fill an entire truck, this solution can significantly reduce costs.

What Determines the Price of Groupage Freight Transport?

Customers often think about distance first. Although the transportation distance is one of the most important factors determining the price, it is certainly not the only one.

The price is also affected by the number of pallets, weight, dimensions and volume. The destination country is equally important, as it determines the transportation route and whether, for example, a ferry or other transportation solutions will be required during the journey. Additional costs may also arise if extra services are needed, such as a tail lift, crane loader or a specific delivery time.

The final delivery address also matters – whether it is located in a city or in a remote area. Delivery to a city is often easier than delivery to a remote or more difficult-to-access location.

In other words, the price is determined by:

• distance and route;
• number of pallets or packages;
• cargo weight;
• cargo dimensions and volume;
• destination country;
• loading and unloading locations;
• delivery address;
• additional services required;
• required delivery timeframe.

Although many factors affect the final price, groupage freight transport will generally be more cost-effective than booking an entire truck for just a few pallets.

What Are the Advantages of Groupage Freight Transport?

If a company does not need to fill an entire truck, groupage freight transport is often the most economical solution. Costs are shared between several customers, meaning there is no need to pay for unused space in the vehicle.

At the same time, this solution enables regular, safe and efficient cargo delivery both within Latvia and to other countries.

This solution is not only more economical, but also helps reduce the number of empty or partially loaded transport journeys.

If you are unsure whether groupage freight transport is suitable for your cargo, contact the Diamond Connected specialists. We will help you find the most cost-effective and appropriate transportation solution for your needs.

Author: Dairis Dimants
Position: Head of a logistics company
Experience: More than 15 years of experience in logistics
Contact: +371 27050995 info@dcd.lv

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