Groupage is a new and up-to-date shipping system that can help reduce customs fees. In this method, small items are moved easily and at the lowest cost. If the export or import cargo has a small volume and occupies a small space, you can use this different method to transport it. Trading companies provide suitable conditions for groupage by receiving all small cargoes.
In this method, it is collected several times and sent at once. Reducing transportation costs is the main reason for using groupage. If the small cargo is moved alone, it brings a lot of cost to the owner of the goods. For this reason, today most of the businessmen have taken advantage of this useful and effective aspect.
Principles of transportation with groupage
Group transportation has its own principles and rules and must be done with the necessary permits. International shipping companies are ready to do this and can send several small cargoes at the same time. Before sending the cargo, the cost will be announced to the owner of the goods.
This method is used when the volume of goods is less than a truck or container. Putting multiple loads in one container will definitely reduce shipping costs. With truck imports, this freight field has become more prosperous. Another principle that is observed in the transportation of retail goods is receiving a receipt from the company.
The owners of goods can clear their goods through the receipt. Packaging in this method is very important and prevents the quality of goods from falling during the transportation process; Therefore, the principles of packaging should be followed well. Traders need a TIR card for international transit.
Types of packaging in groupage
Packaging plays an important role in group transportation, that’s why all kinds of Trading Company focus on this issue. The following 3 packing methods can be used to move small cargo:
- Small packaging
Because of its low density, small packaging takes up a limited space, and for this reason, it gets more attention. This method is inexpensive and affordable. This packaging is not biodegradable and can be dangerous for the environment.
In terms of security, it is at a low level, and in the process of transportation, there may be threats to its security and it may be manipulated. It is less produced due to its disadvantages.
- Cardboard box packaging
A cardboard package is also used to carry the groupage; But it does not have the necessary quality and durability and cannot deliver the goods safely to the destination against humidity, heat and pressure. Using cardboard packaging is not recommended.
- Packing plastic pallets
Compared to the first two options, plastic pallets are a better option for groupage packaging. The resistance of this model to moisture, pressure and heat is high and it does not lose quality. Moving pallets during transportation can damage the goods.
Application of groupage
Groupage is widely used in the transportation industry and has been able to contribute to the development and prosperity of this industry by transporting small loads. The main application of this method is to move small loads at low cost. Combining multiple shipments with the same destination can be cost-effective for merchants.
When the customer’s load is small, Groupage puts several loads in one truck or container. Other uses of groupage include carrying personal loads. People who buy a product for their personal use can use groupage to send it.
In this situation, the cost of transportation will be lower for them. Small purchase volume helps to combine several times. Goods that are supposed to be imported temporarily and leave the country after a certain period of time need this method. To clear these goods, traders need a customs license.
These exhibition goods are cleared through the groupage process and require a customs license. Another use of groupage is to send sensitive and valuable goods that require great care. Buyers of sensitive goods can use joint shipping to avoid cargo damage.
Benefits of shared shipping
Shared transportation has its own advantages. The advantage of groupage is great for the goods owners and it reduces the cost of transportation for them. Other advantages of this method include the following:
- High productivity
In the groupage method, fewer resources are used for transportation, and this issue can increase the efficiency of cargo transportation. Using a container to transport several times helps to reduce costs and depreciation.
- Reduce pollution
By reducing the means of transportation, air pollution will also decrease. When all the loads are placed in one truck, its emissions are lower than when the loads are moved by several trucks.
- Combination of several goods in one container
Small and light loads are combined by being placed in a container, and sending them brings lower costs for the owners of the goods. These consolidated shipments are shipped regularly.
- Sharing the cost of international shipping
When they are combined several times, their cost is shared between the owners of the goods. There is no need for one person to pay the entire cost of the groupage alone.
- more speed
Other advantages of groupage include high speed of transportation. By reducing the shipping time, the shipment reaches its destination in the shortest time and the customer can pick it up.
- Service improvement
Customers are fully satisfied with the services provided in shared transportation, and this can be the most important advantage of this method. Reducing costs and increasing shipping speed can increase satisfaction.
Disadvantages of joint shipping
Along with the advantages, groupage also has some disadvantages that we present here:
- More complexity
This method must be done with careful planning due to its complexities. Management is the most important principle in joint transport and small loads must be properly arranged.
- Risk of failure many times
By placing different loads in one container, the probability of their damage is higher. Interference of goods can cause irreparable damages.
- Packaging cost
To send cargo by groupage method, it is necessary for the goods to have special packaging. Packing them costs a lot for the company and the owners of the goods.
- Need special equipment
Groupage containers and special trucks are needed to carry shared cargo, and this can lead to additional costs for both parties.
- Risk of cargo loss
Combining loads in one container increases the risk of them being lost. If an accident happens to the container, the entire load will be damaged at once.
Loads that are transported by groupage!
Groupage is widely used in the transportation industry and is used to transport the following cargoes:
- Retail goods
Small cargoes play the most important role in the common cargo transportation cycle. Foodstuffs, manufactured products, household appliances and electronic appliances are among the small loads that can be moved through groupage.
- industrial products
All goods produced by industries are sent to all parts of the world through common freight. Electrical and medical equipment, auto parts, industrial raw materials and chemicals are included in this group.
- Crops
Fruits and vegetables, animal products and grains are transported by groupage method. Combining several products in one container increases the speed of transportation and reduces costs.
- Store goods
Clothes, shoes, sports equipment and cosmetics are all under the category of store goods that their owners can send to all parts of the world with the help of the common cargo transportation system.
- Commercial cargo
Transporting commercial cargo through groupage is less expensive for merchants. This shipment mostly includes consumables such as wood products, paper, construction materials.
Important points about groupage
Commercial companies must keep important points in mind for transporting goods around Groupage, the main of which is cargo packaging. If the packaging is improper, it will be damaged during the transportation process. This method must be done with planning. The two sides of this transaction must coordinate with each other.
Timing is very important in this process. You must have correct timing for loading and unloading and delivery of goods. Combined loads must be marked separately. Choose the appropriate transportation according to the type of cargo and destination. Among other important points, we can mention cargo insurance, which makes the customer’s mind easy.
Clearance fees in Groupage
In Groupage, clearance costs are low; Because the final cost is divided between several retail customers. All the loads arranged in the container are taken out in order and given to their owners, that’s why their cost is calculated separately.
Reducing transportation and clearance costs is the most important advantage of using groupage. When the quantity of the product is small, sending it alone can be expensive. Commercial companies come into action with shared freight to reduce these costs.
final word
Groupage is formed by combining small loads and in this process the speed of transportation increases. When the volume of cargo is small, trading companies combine the cargo of several traders and put it in a container with proper packaging. This method is used when the destination of all loads is the same. In the rail , land, air and sea transportation industry, this method is the best option and has been able to meet the needs of industries and merchants well.
