Groupage transport accounts for 37% of road freight traffic, according to Transport Intelligence, and generates around 5% of business in the global logistics market, according to the consultancy TransCare. It is an increasingly fundamental shipping model for the supply chain, key to the competitiveness of many industries and will continue to grow over the coming years.
What is groupage transport?
Groupage refers to the transport of goods that do not occupy the entire load capacity of a truck, thus allowing multiple shipments from different senders to be grouped together in a single vehicle. The load is moved to a consolidation warehouse, where the shipments are structured by destination and prepared to continue their journey in another truck, which makes the main route to a destination centre for subsequent last-mile delivery, or directly for distribution to the end customer.
What are the benefits of groupage transport for shippers?
- Price: by sharing the truck with other goods, cost optimisation is achieved, resulting in more competitive rates for shippers. This option is a more economical choice than FTL (Full Truck Load) transport and allows companies to make significant savings on their transport costs.
- Flexibility: frequent shipment of smaller quantities of goods means greater flexibility to adapt to the changing needs of your business. This versatility allows you to adjust logistics operations according to market demand, providing a tailor-made service and ensuring maximum operational efficiency.
- Europe-wide access: the most competitive groupage transport networks offer comprehensive coverage throughout Europe. Regardless of the volume of goods, these logistics solutions can take any business to every corner of the continent, expanding the commercial possibilities and international presence of companies to increase their exports.
- Stock reduction: the ability to make specific and flexible deliveries allows companies to minimise their inventory levels. This not only reduces the costs associated with warehousing, but also optimises resources and improves operational efficiency. With groupage transport, you can maintain tighter inventory and respond quickly to market demands.
- Sustainability: By sharing and reducing the number of vehicles required for shipments, you significantly contribute to reducing the impact of transport on the environment. In this way, opting for groupage transport is not only a smart economic decision, but also denotes a greater commitment to environmental responsibility.
What factors should be taken into account when entrusting a partner with groupage transport?
- Daily transport connections: check the daily departures offered by the logistics operator and the connections it makes available to you on the continent for the groupage service. A strong network with frequent connections is essential to sustain an efficient service in the groupage model.
- Warehouse network: find out about the infrastructure of your own warehouses where your goods will be stored and consolidated in groupage traffic. Keep in mind that a dense structure will allow a better service for your logistics and more speed for your shipments.
- Delivery times: review delivery times in the markets in which you operate and the company's distribution capacity at the destination, as well as its experience in this market. Timeliness of delivery is an increasingly crucial element in both industry and retail.
- Service reliability: assess the reputation of the operator to whom you entrust your traffic, and the performance and timeliness of their traffic. Bear in mind that this is an activity that requires an extensive network across the continent, so its size and market leadership is a valuable asset in this transport segment.
- Cargo tracking: ask whether the operator provides tracking solutions for the continuous location of cargo. This tool provides companies with valuable information to coordinate their industrial or commercial activity, and improves coordination with suppliers and customers.
What trends will shape the future of groupage?
The groupage transport market is mainly focused on B2B supply for industry and commerce, and although its share of the logistics market has remained stable in recent years, forecasts suggest that it will grow in the future as a result of several factors:
- Increase in the price of transport: the trend of rising prices in the transport of goods by road is pushing shippers towards more competitive solutions, so the savings provided by groupage will be an increasingly attractive element for its contracting.
- Growth of the just-in-time model: this strategy seeks to reduce storage costs and minimise excess inventory, so companies only receive goods when they need them, driving demand for more frequent and smaller shipments.
- Inventory reduction: This is a global trend that has led to a growing need for smaller, more flexible shipments, resulting in an increase in groupage services. Companies are looking to optimise their operations and minimise the costs associated with prolonged storage, which has made groupage transport an attractive option.
- Rise of e-commerce: the increase in e-commerce sales has contributed significantly to the demand for groupage transport and is leading to an overall decrease in the size of shipments.
- Increased technological efficiency: real-time tracking and route optimisation are just some of the innovations that are already transforming the way groupage shipments are managed. In the future, new tools will be introduced that will make groupage transport more competitive as a more flexible and cost-effective alternative for shippers.
Do you want to know our new groupage transport solution? We present Groupage Network 2.0, an innovative service that we at Rhenus Group have designed to multiply the competitiveness of your traffic with daily departures throughout Europe and reduce transit times to any destination on the continent. We want to be your partner in your groupage traffic. Contact us.