Glossary
Groupage
The consolidation of multiple smaller shipments into a single larger shipment for efficient transportation and cost savings in supply chain logistics.
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Al Sharqi Shipping is a leader in the logistics industry with more than 30 years of experience in guiding and moving freight across the globe.
What are Groupage Services?
Groupage, otherwise known as consolidated shipping or less than truckload (LTL), is critical in optimizing supply chain logistics. It involves the consolidation of multiple smaller shipments from different origins and destinations into one single, large load. This process improves packing efficiency, reduces transportation costs, and maximizes carriage space in vehicles.
Benefits of Groupage services
In groupage, the combination of multiple shipments with similar routes or destinations allows logistics providers to maximize the utilization of transportation resources. Also, by sharing the transportation costs among multiple shippers, groupage offers cost-effective solutions for businesses with smaller shipment quantities.
Another advantage of Groupage is that it minimizes the environmental impact of global logistics by reducing fuel consumption and carbon emissions. Additionally, end users benefit from shorter transit times unlike with individual shipments, as it eliminates the need for multiple stopovers and cargo transfers.
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