What is groupage ?

Groupage is the consolidation of various goods from different consignors into one full load. Typically pickups will be made by smaller vehicles, 7.5-tonne rigids or vans and then taken to a central hub to be ‘grouped’. Air and sea freight tend to use the term load consolidation – groupage applies to rail and road. In some respects there is overlap with the model used for pallet networks, where loads are also centrally consolidated. However, groupage is frequently involved with other modes of transport and international journeys and offers the consignor a competitive rate for small volumes.

Groupage requires substantial warehouse or depot space for consignments, and usually skilled packers as well as transport workers. Some haulage companies undertake groupage work in its entirety (assembling their own full loads from assorted pickups) or accept commissions from freight forwarders who plan and assign full loads. Freight forwarders are particularly involved in co-ordinating international groupage work where journeys are frequently intermodal. Not only can groupage lower transport rates, but freight forwarders will hold the stock at the other end until the exporter acknowledges payment, thereby limiting the risk for their customer.

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http://www.europeangroupageservices.co.uk/