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Groupage transport meets the transport needs of small and medium-sized enterprises, retailers, e-commerce companies, and organizations with low-volume cargo. This type of transport, which allows reaching a wider customer base at a lower cost, helps to transport goods safely during transit.
In this blog post, we will explain in detail what groupage transport is, its advantages, and how the cargo is calculated. Once you understand what groupage transport is and how this transport model can create value for businesses and organizations, you can optimize your costs and manage your logistics operations more effectively. So, let’s take a closer look at this impressive transport method! 👇😍
What is Groupage Transport?
Groupage transport refers to the transportation of different cargoes belonging to multiple consignees in one transport vehicle (usually a truck or container). This method of transport is preferred especially when the volume of cargo is too small to completely fill a transport vehicle.
Groupage transport is usually an ideal solution for smaller-scale shipments. Small cargoes from many different consignees are consolidated into one vehicle going to the same destination or in the same direction.
With groupage transport, instead of renting a separate transport vehicle for each shipment, multiple shipments are transported in the same vehicle. This significantly reduces transportation costs.
Groupage transport can be used in various types of shipping, such as road, sea, and air, on both domestic and international routes. The way goods are transported is organized and coordinated by logistics service providers or transport companies. ✈️🚘🛳️
What are the Advantages of Groupage Transport?
The groupage transport method is an approach used by logistics companies to transport small quantities of cargo requested by different customers on the same route. It is essential that the transport practices in the logistics sector are suitable for the competitive environment.
At this point, groupage transport has many advantages of its own. Foremost among its advantages is cost-effectiveness. You can examine the headings below to learn more about the advantages offered by the groupage transport method. ⬇️
Cost
Groupage transport is a method that allows you to ship even when you have small quantities of cargo. Thus, it becomes possible to send products even with a smaller budget. With this method, customers ensure that the cost of their own cargo is shared with the cargo costs of others. 👈
Eco-Friendly
This type of transport is more environmentally friendly compared to other logistics methods. This is because fewer transport vehicles are used in groupage transport. This results in a smaller carbon footprint and causes less damage to the environment.
Smaller Storage Areas
Groupage transport is a type of transport that requires less storage space by bringing together the cargoes of different customers. This helps to minimize the storage costs spent by businesses.
Fast Delivery
With the consolidation of cargoes in this type of transport, effective planning and routing can be done. Thus, it becomes possible to deliver much faster to customers.
Reliability
Less than truckload (LTL) transport is one of the most reliable methods for companies to meet their shipping needs. Transporting client cargoes under reliable conditions to reach their destination on time is a positive sign in the eyes of consumers.
Improved Service
Groupage transport is usually managed by professional logistics providers. This offers regular shipment schedules, improved tracking and tracing options, and generally higher service quality. Thus, businesses can manage their logistics processes more effectively and increase customer satisfaction. ✅
How is Volume Calculated in Groupage Transport?
In groupage transport, volumetric weight is calculated to determine how much space the cargo occupies in the transport vehicle. When making calculations in terms of m3 in groupage transport, the formula QUANTITY x WIDTH x LENGTH x HEIGHT is taken as a basis. Accordingly:
• 1 m3: will be 333 kg.
• 1 ton: will be 3 m3.
• 1 ldm: will correspond to 1750 kg.
What are the Groupage Cargo Calculation Methods?
One of the calculations made for groupage transport is the cargo calculation. When making the calculation, transport sector costs are taken as a basis. Transporting more cargo at less cost increases the profit companies earn from this business.
International dimensions are used when calculating shipping rates for air, sea, and road transport. These international standard measurements are compiled below: 👇
• Road transport: 1 m3 = 333 kg
• Sea transport: 1 m3 = 1 ton
• Air transport: 1 m3 = 167 kg
A generally accepted formula is applied in all shipping types. This formula is as follows: 👇
Length x Width x Height = Weight of the cargo in terms of 1 m3
Who Should Choose the Groupage Transport Method?
Groupage transport is generally preferred by businesses or individuals whose transport needs do not fill a specific volume but who have regular or periodic shipments. This method ensures that if a specific shipment volume does not fill a transport vehicle, it is consolidated with the shipments of other customers to optimize cost and environmental impact.
Small and medium-sized enterprises cannot send products in a volume large enough to fill a full container or transport vehicle. In this case, groupage transport is an ideal solution. This is because the shipments of these businesses are combined with the shipments of other customers to reduce transport costs.
E-commerce companies and retailers also generally prefer groupage transport. This is because these companies typically send a large number of small packages. Small packages, however, may not be enough to fill a transport vehicle. Groupage transport allows such companies to reduce their shipping costs and be more flexible with smaller shipments.
In addition, groupage transport can also be used by individuals looking for another transport method to reduce the shipping cost of a specific cargo. Groupage transport can be an excellent solution, especially in cases where small shipments need to be made regularly within a specific time period. 😍
Your Cargo is Safe with Navlungo
Companies providing groupage transport services are highly professional in organizing the transport and collection activities of their customers' shipments. The companies providing this service collect the items delivered by their customers at a specific central hub. Afterwards, they load them onto the transport vehicle with high professionalism and make the delivery to the address specified by the customers.
The groupage transport method is a preferable method for providing cost savings and enabling cargoes to reach the specified point reliably. However, this service must still be obtained from a professional transport company. At this point, you can trust Navlungo’s experienced staff and hand your cargo over to professional hands.
