News

Groupage

30 January 2008

Groupage is the consolidation of various goods from different consignors into one full load. Typically pickups will be made by smaller vehicles, 7.5-tonne rigids or vans and then taken to a central hub to be ‘grouped’. Air and sea freight tend to use the term load consolidation – groupage applies to rail and road. In some respects there is overlap with the model used for pallet networks , where loads are also centrally consolidated. However, groupage is frequently involved with other modes of transport and international journeys and offers the consignor a competitive rate for small volumes.

Groupage requires substantial warehouse or depot space for consignments, and usually skilled packers as well as transport workers. Some haulage companies undertake groupage work in its entirety (assembling their own full loads from assorted pickups) or accept commissions from freight forwarders who plan and assign full loads. Freight forwarders are particularly involved in co-ordinating international groupage work where journeys are frequently intermodal. Not only can groupage lower transport rates, but freight forwarders will hold the stock at the other end until the exporter acknowledges payment,  thereby limiting the risk for their customer.

What documents do I need?

Various documentation is necessary for international journeys, the most central being the CMR. This is an internationally recognised document which details the load, the date it was loaded and the consignor’s details. Ideally this should exonerate the driver or haulage company from responsibility should the load not turn out to be as documented or legal; however in practice the driver and/or haulier are still held responsible for the load. Groupage can cause some problems therefore for international drivers as their loads are assembled for them from many constituent parts and the trailers sealed before they collect them; should one contain contraband the driver is usually held responsible and not the consignor.

Related international documentation is the TIR which shows that a load has been sealed by Customs and can then pass across further borders to its destination without further checks. This system is guaranteed by the International Road Transport Union (IRU) although transport operators must have a security bond held by either the Road Haulage Association or the Freight Transport Association. However within the European Union there are now no customs checks meaning that the TIR is only of use outside the Euro-zone.

Who handles groupage?

Companies often specialise in particular ‘runs’, eg from the UK to Benelux and Germany, using a partner company for local distribution and to ensure return loads. A good example of this is Bird's Groupage Services which runs across the Irish Sea and into Germany. Harpenden, Herts-based Sealane Freight also offer groupage services to European manufacturers accepting consignments as small as one carton.

Impex Freight Services, shipping agent and freight forwarder, also handles groupage for personal and commercial clients, shipping household goods and cars as well as exports. Sea Wing, Irish Groupage Services, A&M and Multi-Route Cargo also offer groupage. Note that some offer a local as well as international groupage service.


Louise Cole
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