Groupage transport, also known as consolidated freight, is one of the most popular solutions in domestic and international logistics.
This type of transport allows smaller consignments of goods to be transported without having to reserve an entire vehicle. This makes it possible to combine shipments from different senders, which significantly reduces transport costs and increases operational efficiency. This solution is used by small and medium-sized enterprises as well as large companies that make regular shipments in the e-commerce, automotive and machine construction industries.
Groupage transport therefore allows for flexible deliveries, cost optimisation and efficient supply chain management.
Our customers need more than just the transport of goods in international groupage transport. We understand the importance of service quality and the significance of choosing the right transport company. That is why Jasek Transport acts as a reliable partner that values professionalism, efficiency and care. Our logistics services in Europe are based primarily on the commitment of our drivers. They ensure that each load is properly secured and packed, and guarantee safe delivery.
In this article, we explain what groupage transport is, how it works, what benefits it brings and when it is worth choosing.
What is groupage transport?
Groupage transport, also known as consolidated freight, is a form of transport in which shipments from multiple senders are consolidated into a single load and transported in one vehicle. Unlike full truckload (FTL) transport, the customer only pays for the portion of the cargo space used, in proportion to the volume or weight of the shipment.
This means that the customer only pays for the space occupied, in proportion to the volume or weight of the shipment.
Groupage transport is particularly cost-effective when the volume of goods does not justify a full vehicle load. Typical groupage shipments include pallets, cartons, crates or other loading units whose weight and dimensions fall within specified limits. This transport model allows for the efficient use of cargo space, reduced logistics costs and increased delivery frequency.
In practice, groupage transport services are often used by trading, distribution and e-commerce companies, as well as manufacturers who regularly send smaller batches of goods to different locations. The carrier collects shipments from multiple customers, consolidates them at a distribution centre and then delivers them to the end recipients according to a planned route.
Thanks to its flexibility and scalability, groupage transport is an important element of modern supply chains. It enables quick responses to changing market needs, reduces the risk of excess inventory, and allows for more sustainable management of logistics resources.
How does groupage transport work?
Groupage transport is based on the consolidation of shipments – i.e. combining goods from different senders into one collective transport. This ensures that the space in the vehicle is used efficiently and the transport costs are shared between many customers.
The customer does not reserve the entire vehicle, but only as much cargo space as they actually need. This process requires proper planning, coordination and logistics infrastructure.
1. Collection of shipments from senders
Groupage transport begins with the collection of shipments directly from senders. These are usually goods placed on pallets, in boxes or other secure loading units. Shipments are collected from various locations and transported to local logistics terminals (transhipment warehouses).
2. Consolidation of shipments at terminals
Shipments are sorted and consolidated at terminals. Distribution centre employees group them according to delivery destinations, postcodes or transport zones. At this stage, TMS (Transportation Management Systems) technologies are very often used to support route planning, load optimisation and delivery time control.
3. Line haul
After consolidation, shipments are loaded onto lorries and transported to their destination terminals (or directly to recipients if the distance is short). In the case of international transport, shipments may also pass through customs and border centres.
4. Unloading and last mile
Upon arrival at the destination terminal, shipments are re-sorted and prepared for delivery to the final recipients. This stage is referred to as ‘last mile delivery,’ which can include deliveries to warehouses as well as directly to shops, offices, or retail outlets.
5. Monitoring and communication
Most operators provide customers with access to track & trace systems that allow them to monitor the status of their delivery in real time. Modern technological solutions also enable automatic notifications, integration with ERP systems and quick contact with customer service.
A flexible and scalable model for groupage transport
Thanks to the ability to consolidate shipments from multiple senders, groupage transport is more economical and environmentally friendly than full truckload transport, especially for smaller consignments. However, it requires precise logistics, punctuality and adequate load securing.
Groupage transport is a dynamic and efficient logistics model that works well for both domestic and international transport. Well-designed groupage transport minimises delivery times, reduces costs and increases customer service reliability.
What are the disadvantages of groupage transport?
Although groupage transport offers many advantages, such as lower costs for smaller shipments and greater delivery flexibility, it is not without its limitations. Understanding the potential disadvantages of this model allows for better risk management and the implementation of effective countermeasures.
Longer delivery times
In groupage transport, shipments are repeatedly reloaded and sorted at different terminals. Depending on the route and number of stops, delivery times may be longer than with FTL (full truckload) transport.
Solution:
Choose operators that offer precise delivery time windows, predictable schedules and real-time shipment tracking. In addition, it is worth using priority or express services if you want to reduce transit time.
Increased risk of damage to shipments
Repeated transhipments and sorting increase the risk of damage to goods, especially if the cargo is improperly packed or secured.
Solution:
Use sturdy packaging, secure shipments on pallets and use cushioning materials. Choose carriers who use quality procedures during transhipments and offer transport insurance tailored to the value of the goods.
Limited control over the route and schedule
In the groupage model, the sender has no influence on the route the shipment will take or on specific loading and unloading times, as these depend on the collective delivery schedule.
Solution:
Ensure proper communication with the logistics operator. Make sure that the carrier offers transparent terms and conditions of service, informs you of any delays and provides tools for tracking shipments.
Possibility of delays caused by other shippers
Due to shared cargo space, delays in one shipment (e.g. lack of readiness for collection) can affect the entire transport plan.
Solution:
Work with a logistics company that uses supply chain management systems (TMS) and has experience in planning multi-point routes. Establish clear terms of cooperation, including rules for compensation for delays resulting from external factors.
The need for precise documentation
Groupage transport requires accurate labelling of shipments, detailed data and the preparation of appropriate transport documents. Oversights can lead to delays or additional costs.
Solution:
Automate the document preparation process — use EDI tools or TMS platforms integrated with your ERP system. Choose carriers that offer support in verifying documentation before shipping.
Good to know!
Our company understands these limitations. As a result, we have developed methods to minimise these risks, thereby improving the quality of our services.
Advantages of groupage transport
Groupage transport is a solution that allows companies to effectively manage costs, increase operational flexibility and better adapt to changing market conditions. Below are the benefits of this transport model.
Lower costs for smaller shipments
In the groupage model, you only pay for the space your shipment occupies. This is an advantageous solution for companies that do not generate full truckloads but want to maintain regular deliveries without incurring excessive costs.
Who is it for?
For companies that ship smaller batches of goods several times a week or month, e.g. distributors, online shops, manufacturing companies.
Greater operational flexibility
Groupage allows you to ship goods at a convenient time without having to wait for a full load. This facilitates inventory management and allows you to respond more quickly to customer needs.
Benefit:
The ability to quickly adjust your delivery schedule to current market or seasonal conditions.
Regularity and availability of services
Most logistics operators offer daily pick-ups and deliveries throughout the country and in many European countries. Groupage transport is a standard service offered by most logistics companies.
What does this mean?
Constant availability of transport, even for small volumes, eliminating the need for long-term planning of large shipments.
Optimal use of cargo space
By consolidating shipments from multiple senders, vehicles are better utilised. This translates into a lower carbon footprint per unit of goods.
Good to know! Groupage transport allows for better use of available means of transport and reduces the number of empty runs.
Easy logistics scaling
Groupage transport allows for flexible adjustment of shipment volumes depending on seasonality, demand or business growth. It does not require investment in your own fleet or planning of full loads.
Who is it for?
For companies that are growing rapidly or operate in industries with variable logistics needs.
When is it worth choosing groupage transport?
Groupage transport is not always the optimal solution, but in many cases it works much better than full truckload (FTL) transport or courier services. It is crucial to recognise when groupage transport becomes the most effective choice, both in terms of cost and logistics.
When you are sending smaller batches of goods
If your shipments do not fill an entire trailer or delivery van, and their volume exceeds the typical level for courier services (e.g. several pallets), groupage will be the optimal choice. The typical break-even point is 1-6 pallets or loads weighing between 150 and 5,000 kg.
For regular but small shipments
Companies that regularly ship goods in small quantities (e.g. several times a week or month) can ensure a steady flow of goods without having to store excess inventory.
Example of application:
- Regular deliveries to retail chains
- Small batch orders in B2B e-commerce
- Just-in-time production
See how e-commerce can reduce delivery costs with groupage transport.
Check out our JIT transport offer for logistics-sensitive industries.
For multiple recipients
The groupage transport model is ideal when you have many customers located in different regions. Thanks to its network of terminals, the operator can efficiently distribute shipments at the final stage of delivery, which reduces unit transport costs.
When you need to reduce transport costs
Groupage allows you to share transport costs between multiple senders. It is an ideal solution in situations where a full load is not economically viable, but you still need professional service and punctuality.
When testing new markets
If you are planning to enter a new market or want to test deliveries to new customers, groupage transport allows you to efficiently and cost-effectively handle smaller shipments without having to engage full transport.
For international transport of small batches
Groupage transport is commonly used in the export and import of goods with limited volume. It avoids the high costs of full truckload transport and allows you to take advantage of the extensive logistics network of carriers operating in Europe and beyond.
Good to remember!
Groupage transport is a good choice wherever the volume of the shipment does not justify the use of an entire lorry, but professional service, punctuality and control over the logistics process are required.
How to prepare a shipment for groupage transport?
Proper preparation of a shipment for groupage transport is crucial for its safety and the smooth running of the entire logistics process.
The goods should be securely packed, preferably on a pallet, so that they can withstand repeated transhipments and transport in shared loading space. It is also important to clearly label each unit and attach complete shipping documentation. Incorrectly secured cargo may be damaged, and errors in the shipment description may lead to delays or additional charges.
Packaging and labelling rules differ from standard courier services, so it is worth familiarising yourself with the carrier’s detailed guidelines or consulting your logistics operator before sending your shipment.
What goods are most often transported by groupage transport?
Groupage transport is used in a wide range of industries because it allows the transport of goods that do not require full loading space.
The most commonly transported products are those packed in loading units such as pallets, cartons, crates or barrels. Typical groupage loads include industrial products, manufacturing components, foodstuffs with a long shelf life, chemicals (compliant with ADR standards), electronic equipment, furniture, spare parts, office supplies and textiles.
Groupage is commonly used by companies in the logistics and distribution, FMCG, automotive, cosmetics and construction industries. Thanks to its flexibility, groupage transport allows goods to be delivered to multiple locations on a regular and economical basis, regardless of the industry and type of cargo.
Groupage transport costs – how are they calculated?
Groupage transport costs are calculated based on several key shipment parameters. The most important ones are weight, dimensions, volume and distance between the point of dispatch and the place of delivery.
The freight class, which takes into account the density of the load, ease of handling, value and risk of damage, is also very important. Additional costs may arise from supplementary services such as loading with a lift, delivery to a hard-to-reach area, SMS notifications or shipment insurance. Prices also vary depending on the operator and logistics zone.
For companies that ship regularly, it is possible to negotiate rates and individual terms of cooperation. An accurate quote is usually prepared based on the cargo specifications and the specific transport route.
Choosing a carrier and operator
Choosing the right carrier for groupage transport has a direct impact on the quality of service, punctuality of deliveries and security of shipments. The transport services market is competitive, so it is worth paying attention not only to the price, but above all to the operator’s experience, the quality of infrastructure, the scope of the distribution network and the availability of additional services.
A good logistics operator should provide shipment tracking, transparent pricing, technical and operational support, as well as a flexible approach to unusual orders. Companies that offer integrated TMS systems and the ability to integrate with the customer’s ERP system can significantly simplify the daily work of the logistics department.
Quick tip! It is also worth checking other customers’ reviews and response times to enquiries and complaints. Our company is proud to present reviews from satisfied customers, to whom we also offer fast and efficient communication.
For companies that make regular shipments, the stability of cooperation, clear SLA terms and the possibility of negotiating individual rates will be key. It is also important to note whether the operator specialises in a particular type of shipment or serves a specific industry. This can translate into greater efficiency and less risk of errors.
Groupage transport in international transport
Groupage transport is also widely used in international logistics. It allows for the economical transport of smaller consignments between countries without the need to hire an entire lorry. This is a particularly advantageous solution for exporters and importers who want to test new markets or make regular deliveries to multiple recipients abroad.
In international transport, appropriate customs procedures, documentation and knowledge of the regulations in force in the destination country are of key importance. Operators usually offer comprehensive services – from document preparation, through customs clearance, to delivery to the specified address.
Good logistics companies also provide advice on the classification of goods, tariff codes and export requirements. See how customs procedures in international groupage transport work step by step.
Due to the multi-stage nature of transport, groupage shipments in international relations require precise planning and a well-organised network of partners. Choosing an experienced operator with its own or partner network in a given country significantly increases reliability and reduces delivery time.
Modern technologies used in groupage transport
Technological progress has a direct impact on the quality and efficiency of groupage transport services. Modern IT systems enable effective planning, continuous monitoring, and automation of logistics processes at every stage of shipment execution. Carriers invest in solutions that increase transparency and reduce customer service time.
One of the key tools is the TMS (Transportation Management System), which enables the management of transport orders, route optimization, and cost and efficiency analysis. More and more companies also offer TMS integration with customers’ ERP systems, which allows for automatic data transfer and reduces the number of errors.
Real-time shipment tracking is also an important element. Thanks to track & trace technology, senders and recipients have constant access to the status of their cargo, which increases the predictability of deliveries and improves communication. In addition, SMS or email notifications are used to inform about the progress of transport and possible delays.
Data-driven solutions are also gaining in importance, from predictive timeliness analysis to intelligent load planning. Automated documentation handling, digital waybills, and electronic signatures are further elements that streamline the daily handling of groupage shipments.
The future of groupage transport
Groupage transport will play an increasingly important role in modern supply chains. The growing importance of e-commerce, the need to respond flexibly to demand, and the development of urban logistics are driving dynamic changes in the way shipments are organized and executed.
One of the main directions of development is the further digitization of processes – from the automation of orders and invoicing to the use of artificial intelligence for route planning and delay prediction. Logistics companies are also investing in advanced analytical systems that help optimize costs and increase operational efficiency.
In the context of sustainable development, there is an increasing focus on reducing CO₂ emissions, better cargo space management, and the implementation of low-emission vehicles. Consolidating cargo in a groupage model helps to reduce the number of empty runs, which supports environmental goals.
The importance of flexible delivery models – such as just-in-time deliveries, micro-distribution, and cross-docking services – will also increase, and these will be combined with groupage transport even more frequently. For companies that want to remain competitive, it will be crucial to implement technological solutions and choose logistics partners who are ready for change and market development.
Less-than-truckload transport – summary
Less-than-truckload transport is a flexible, scalable, and economical solution that successfully supports the operations of companies regardless of their industry or size. It enables effective delivery management, reduces operating costs, and allows for quick responses to customer needs and market changes. Thanks to advanced technologies and developing logistics infrastructure, it is becoming an integral part of modern supply chains, both nationally and internationally.
In summary, the groupage model works well where:
- shipments do not fill the entire cargo space,
- cost optimization and delivery frequency are important,
- logistics supporting growth, market testing, and operational flexibility are needed.
A well-chosen operator and a conscious approach to transport planning are the foundation of an effective logistics strategy.
Do you need a reliable partner for groupage transport?
Contact our team to discuss your company’s needs and select solutions tailored to your supply chain. We offer comprehensive transport services – from consulting and pricing to full implementation and support at every stage of transport. We operate locally and internationally, with full control over quality, time, and costs.
