Groupage Shipping

How Does Groupage Compare to LTL and FTL?

Groupage and LTL often overlap — and we can help you choose the best fit based on your shipment volume, delivery timeline, and budget.

Groupage Disadvantages

Groupage shipping services are advantageous in many situations, but the service also has disadvantages. If Groupage cargo is not organized correctly, this will result in higher costs for the customer. In Groupage shipping, the shipment is often handled by multiple people, increasing the likelihood of damage or deterioration. Delayed shipments can also occur when consolidators wait for shipments to fill the container. Cargo can be shipped only when the container is full. Generally, the cargo lead time is increased. 

Groupage Advantages

The most significant advantage of utilizing Groupage shipping services is the cost savings. With Groupage, you avoid paying for the entire container and only pay for the space your shipment requires. Each consignor shipping with Groupage pays their share of space, which distributes the cost evenly among shippers based on the CBM (cubic meters) utilized. Another significant advantage of using Groupage is manageable inventory. Groupage allows small quantities to be sent or received without maintaining a large inventory, keeping the numbers to optimum levels. There is even a decreased risk of cargo damage when using Groupage because this method employs full container loads packed to capacity, consequently restricting cargo movement and lowering the risk of damage during handling and transport. 

What Documents Do You Need?

Bill of Lading: Bill of Lading is the contract between an ocean freight company or consolidator and the shipper. If the consolidator issues it, it is called the House Bill of Lading, and when issued by the Ocean Freight Company, it is called the Master Bill of Lading or MBL. 

Packing List: The packing list contains all information about the goods being shipped, such as the description, weight, volume, and packaging, as well as the address and name of the seller and buyer. This list helps customs verify the goods physically. 

Commercial Invoices: A commercial invoice is an invoice from the seller to the buyer and is similar to a packing list. It includes information regarding all products shipped, including the individual and aggregate prices mentioned. It is used for the calculation of customs duties and taxes. 

Certificate of Origin: This certificate shows the country where the goods are produced. 

Dangerous Goods or HAZMAT Certificate: The IMDG and MARPOL have classified various goods as dangerous or hazardous. These goods include specific chemicals, gases, materials, and potentially corrosive or poisonous oils. A dangerous goods or hazmat declaration must be sent if a shipper is shipping any products that fall into these categories. 

Letter of Credit: These are the terms of trade between the buyer and seller and are a sort of bank guarantee for payment from the buyer to the seller.