Effective logistics management requires precise transport decisions. For many entrepreneurs, the key dilemma remains the choice between groupage transport and pallet shipments. This decision has a direct impact not only on shipping cost optimisation, but also on cargo safety and delivery timeliness.
Although both solutions are the foundation of modern freight forwarding, they differ in terms of packaging specifics, transhipment process and pricing model. Understanding these differences is essential to avoid damage to goods and unnecessary expenses.
Jasek Transport is a family-owned company providing reliable logistics services across Europe. Many years of experience in the industry have allowed us to combine traditional values, such as reliability and trust, with modern shipping standards. We understand perfectly well that each shipment requires an individual approach, which is why we not only transport goods, but above all advise on the most advantageous solutions.
In this article, we will analyse the advantages and disadvantages of both systems. We will help you assess which solution best suits the needs of your supply chain.
Definition and characteristics of groupage transport
Groupage transport refers to loads that do not occupy the entire available space in a lorry. It is a solution dedicated to smaller batches of goods. In this model, one lorry transports shipments belonging to many different senders at the same time.
The key process in groupage logistics is consolidation. The logistics operator collects smaller shipments from different customers and stores them in a transhipment warehouse (hub). The goods are then grouped according to delivery destinations and loaded onto larger transport vehicles. This allows the transport costs to be spread across multiple customers, making this option financially attractive for smaller volumes.
A characteristic feature of general cargo is the wide variety of packaging. Goods can be shipped in cartons, crates, tubes or bags. These are often loads with non-standard dimensions or weights that are difficult to standardise. However, this specificity requires the carrier to pay more attention during loading and securing the goods so that loads of different shapes do not damage each other during transport.
Main features of groupage transport
Groupage transport means sharing cargo space. You only pay for the space transported goods occupy, not for the entire lorry.
It also means longer transit time. Due to the need for consolidation and transhipment at intermediate warehouses, delivery times are usually longer than for direct transport.
Multiple transhipment operations are also involved in the process. Parcels pass through a system of sorters and forklifts, which increases the risk of mechanical damage compared to full truckload transport.
What is pallet transport?
Pallet transport is a solution in which goods are shipped on standardised carriers, i.e. pallets. Unlike ‘loose’ general cargo, here individual packages (e.g. cartons) form a single, compact loading unit. The most popular standard in Europe is the EURO (EPAL) pallet measuring 120 × 80 cm, although industrial pallets with other parameters are also in use.
The primary purpose of palletisation is to stabilise the goods. The load placed on the pallet is usually wrapped in stretch film or secured with strapping tapes. This creates a uniform block that is much more resistant to movement during driving or sudden braking. This method of preparing a shipment drastically reduces the risk of mechanical damage, as the goods are not in direct contact with the vehicle floor or other loose packages.
A huge advantage of this system is the streamlining of warehouse processes. The pallets are designed so that they can be easily lifted and transported using forklifts and pallet trucks. This eliminates the need for employees to manually carry heavy packages. As a result, loading and unloading take much less time, which translates into greater fluidity throughout the entire supply chain.
Key features of pallet transport
- High standardisation – pallet dimensions are tailored to the loading space of semi-trailers and racking systems in warehouses.
- Load safety – a solid base and wrapping protect goods from crushing, dirt and moisture.
- Easier handling – reloading operations are carried out mechanically, which reduces the risk of human error and damage during manual sorting.
Groupage and pallet transport costs – which is more cost-effective?
Transport economics are usually the main selection criterion. In the case of groupage transport, the biggest advantage is cost flexibility. You only pay for the space actually used in the trailer. This is an ideal solution when shipping a few boxes that would be too expensive to send by courier and do not fill an entire pallet. It is a budget option for smaller volumes. In a separate article, we advise on how to optimise the costs of groupage transport in e-commerce.
The situation changes with larger quantities of goods. In pallet transport, billing is usually based on a rate per pallet space (space in the vehicle). If you have enough goods to fill a full pallet, the unit cost per product shipped drops dramatically. It is also important to remember about the so-called dimensional weight. In general cargo, light but large parcels may be priced higher due to the volume they occupy. A flat-rate pallet eliminates this problem to a certain extent by offering a fixed price per load base.
Goods safety and packaging
The difference in safety results directly from the way the cargo is handled. Small consignments (loose parcels) are more susceptible to damage. This is because they pass through a system of sorters and are repacked multiple times in transhipment warehouses. A parcel may be crushed by another, heavier consignment or damaged during manual sorting.
Pallet transport offers a much higher standard of protection. Goods on a pallet form a stable whole, which is additionally protected by film and strapping. Importantly, the pallet is loaded and unloaded mechanically using a forklift truck. This eliminates the human error factor when carrying and throwing parcels. In addition, in pallet transport, goods are less likely to change position inside the trailer, which minimises the risk of abrasions and dents.
Transit time and transhipment processes
Transit time is closely linked to the logistics model. Groupage transport usually takes longer. Before the goods reach the recipient, they must be consolidated with other shipments at the dispatch hub, transported to the destination hub and re-sorted into smaller distribution vehicles. Each of these operations adds hours or days to the process.
In the case of pallet transport, this path is sometimes shorter. Although transhipment also occurs here, warehouse processes for pallets are faster and more automated. A forklift operator can move an entire loading unit in a few minutes, while manually sorting hundreds of groupage parcels takes much longer. If time is of the essence and the volume allows it, pallet shipping is often the faster solution.
Unloading conditions and recipient infrastructure
A key difference that senders often overlook is the technical feasibility of receiving goods. Groupage transport is much more convenient for individual recipients (B2C). Couriers delivering parcels usually have a light delivery van that is easy to park in the city. For standard parcels (usually up to 30 kg), the driver is required to bring the parcel to the door of the flat or office. This does not require the recipient to have any equipment.
Pallet transport places specific requirements on the recipient. This service is mainly provided on a ‘curbside’ or ‘doorstep’ basis. This means that the courier unloads the pallet from the vehicle onto the ground, but does not carry it into the building or upstairs. A paved surface on which a pallet truck can move is necessary for unloading. If the recipient does not have an unloading ramp or forklift, a vehicle equipped with a tail lift must be ordered. For this reason, pallets are standard in B2B (business-to-business) relationships, but can be problematic for deliveries to private homes.
Risk of loss and delivery control
The choice of transport method also affects the ease of tracking a shipment and the risk of it getting lost. In groupage transport, if you send ten separate parcels to one customer, each of them receives a separate consignment note and label. There is a risk that during the sorting process, one of the parcels will end up on a different conveyor belt and reach the recipient late. Checking the completeness of the delivery when receiving dozens of boxes is also time-consuming and prone to errors.
Palletisation eliminates this problem by creating a single, collective logistics unit. All goods are placed on a single pallet with a single identification label. It is much more difficult to lose a large, shrink-wrapped pallet in a warehouse than to overlook a small box. For the recipient, this means faster inspection of goods upon receipt; it is enough to check the condition of the film and the number of pallets, instead of counting each box individually.
Our company is the right partner for domestic and international transport
Understanding the differences between groupage and pallet transport is the first step towards optimising processes in your company. The second and most important step is to choose a trusted carrier who can turn these theoretical assumptions into efficient practice. At Jasek Transport, we successfully combine many years of experience with a modern approach to the TSL industry.
We carry out transport orders throughout Poland and internationally. Our fleet is adapted to handle a variety of loads, giving you complete flexibility. Whether you need to send a single pallet to a contractor in Germany or consolidate groupage within the country, we have the appropriate technical facilities at our disposal. You do not need to look for several subcontractors for different tasks – we will take care of all your logistics.
As your business partner, we focus on safety and timeliness. Every shipment is monitored, and our freight forwarders ensure the correct circulation of transport documents. This gives you the certainty that your goods will arrive intact and on time. Contact us to discuss the details of our cooperation and receive an individual quote tailored to your needs.
Differences between groupage and pallet transport – summary
The decision on which transport method to choose should not be random. Both groupage and pallet transport have their economic justification in different business scenarios.
Groupage transport (parcels) works best for irregular, low-volume shipments, especially those sent to individual customers, where flexibility and ease of door-to-door delivery are important. This is an option for those who are unable to fill an entire pallet but want to send goods quickly.
Pallet transport, on the other hand, is a must for companies shipping larger batches of goods, heavy loads or fragile products. Although it requires appropriate infrastructure on the recipient’s side, it offers an unrivalled level of security and streamlines warehouse operations. Proper assessment of these factors will not only allow you to optimise your transport budget, but also build an image of a professional supplier who cares about the quality of the products delivered.
