Groupage transport, simply known as groupage, defines a special type of transport consisting in grouping together goods dispatched by several different companies into a same load. This consolidation method allows multiple shippers to share transportation space and costs, making it ideal for smaller shipments that don't require full vehicle capacity.

In international trade, the abbreviation LTL (Less Than Truckload) is frequently used, referring to groupage transport. Other common terms include consolidated transport, part load shipping, and collective transport – all describing the same fundamental concept of combining smaller shipments into a single, optimised transport movement.

How Groupage Works

The groupage process follows a systematic approach designed to maximise efficiency while maintaining cargo security and traceability:

Collection and Consolidation

General cargo is collected from various shippers and combined as groupage cargo in a warehouse. Freight forwarders gather shipments from multiple customers, typically sorting them by destination or route to create the most efficient consolidated loads.

Transportation

Once consolidated, the combined shipment travels to its destination region using the most appropriate transport mode – road, rail, sea, or air. This shared transportation significantly reduces per-unit costs compared to individual shipments.

Deconsolidation and Distribution

Upon reaching the destination, the consolidated shipment undergoes a process called deconsolidation. Here, the shipment is broken down into its original consignments, which are then delivered to their respective recipients. This final mile delivery ensures each customer receives their specific goods intact and on schedule.

Types of Groupage Services

Groupage transport adapts to different shipping requirements and cargo types:

Road Groupage

The most common form of groupage, combining partial truck loads for domestic and international road transport. Ideal for palletised goods, parcels, and general cargo moving between major distribution centres.

Sea Freight Groupage (LCL)

This type of shipping is also referred to as Less than Container Load (LCL), where multiple shippers share container space for international ocean freight. Particularly useful for businesses importing or exporting smaller quantities that don't justify a full container.

Air Cargo Groupage

Consolidating smaller air freight shipments to optimise aircraft cargo space. This service balances the speed advantages of air transport with cost efficiency for time-sensitive but smaller shipments.

Rail Groupage

Combining partial rail car loads for efficient overland transport, especially valuable for longer distances where rail offers environmental and cost advantages over road transport.

Key Benefits of Groupage

Using groupage shipping brings with it numerous benefits that can help improve both business efficiency. These include cost savings, flexibility and convenience, risk reduction, improved service levels and environmental benefits.

✅ Cost Efficiency

Groupage shipping's cost efficiency stands as one of its most compelling benefits, particularly for businesses seeking to optimise their logistics expenses. By sharing transport costs with other shippers, businesses access professional freight services at a fraction of the cost of dedicated transport.

✅ Flexibility and Scalability

Groupage services accommodate varying shipment sizes and frequencies without requiring minimum volume commitments. This flexibility allows businesses to respond quickly to market demands without maintaining expensive transport assets.

✅ Regular Service Networks

Most groupage providers operate scheduled services between major locations, offering predictable transit times and regular departure frequencies. This reliability supports supply chain planning and customer service commitments.

✅ Reduced Capital Requirements

Businesses avoid the significant capital investment required for dedicated transport fleets, warehousing, and logistics infrastructure. Instead, they access professional services on a pay-per-use basis.

✅ Environmental Benefits

By optimising vehicle utilisation and reducing empty running, groupage transport contributes to lower carbon emissions per unit shipped. This consolidation approach supports sustainability objectives while reducing costs.

Who Uses Groupage Services?

In practice, groupage transport comes into play when a company wishing to dispatch goods does not have a large enough volume to fill a truck, container, etc. Various business types benefit from groupage solutions:

Small and Medium Enterprises (SMEs)

Companies with limited shipping volumes that need professional logistics services without the overhead of dedicated transport arrangements.

E-commerce Businesses

Online retailers shipping products to customers or restocking inventory across multiple locations benefit from the flexibility and cost-effectiveness of groupage networks.

Manufacturers with Diverse Product Lines

Companies producing various products in smaller quantities can use groupage to serve different market segments efficiently.

Import/Export Traders

Businesses dealing in international trade often use groupage services for LCL shipments when full container loads aren't economical.

Seasonal Businesses

Companies with fluctuating demand patterns use groupage to maintain service levels without committing to fixed transport capacity during slower periods.