What is cargo consolidation? Cargo consolidation is a logistics service that involves combining small-sized goods and shipping them in a single load to the same destination. It’s highly beneficial for cost reduction, particularly benefiting small businesses.
What is cargo consolidation?
Cargo consolidation operates as a single shipment with a specific destination, where various individual shipments are combined. It’s common for small deliveries to be collected at a distribution warehouse.
The same vehicle is used to transport all the merchandise and is left at the delivery point. The shipping costs are divided among the individuals or companies that hired the service, considering the type of product being transported.
There are several methods for delivering products. The most common ones are:
- Ground shipping: Trucks are used to transport the items. It’s the most economical method but also the least speedy.
- Air shipping: The shipment is carried out by plane, making it one of the fastest methods but also the most expensive.
- Sea shipping: Typically, this method of transportation is less expensive than air shipping but a bit slower. It’s one of the most commonly used methods for international shipments.
Cargo consolidation is a logistics service that offers many advantages for small businesses that find it unprofitable to hire other types of delivery services. For example, it’s useful for individuals importing products who are looking to reduce delivery costs.
Types of transportation
There are two concepts to consider when using cargo consolidation:
- Less-than-Container Load (LCL). This refers to the type of transportation used for small shipments that are not enough to fill a container. These shipments may take longer to be shipped as they require waiting for the container to be filled with other merchandise.
- Full-Container-Load (FCL). It’s a single shipment that can fill the container needed for transportation. These are loads that will still be combined with others, but they require less waiting time and can be more economical than LCL shipments.
Benefits of cargo consolidation
Using this transportation method offers numerous benefits, especially for small businesses or independent distributors. For example, it reduces costs, speeds up delivery, and ensures careful handling of the merchandise, among other aspects.
It’s important to hire the services from specialized companies to prevent delays in package delivery and potential damage to the merchandise.
Lower shipping rates
When opting for this service, you only pay based on the weight of the merchandise and the distance traveled. Additional expenses are handled and managed by the company as necessary. This makes the transportation costs for your products much more affordable compared to other freight services.
Quicker transit time
Cargo consolidation strikes a balance between delivery speed and cost-effectiveness. With a direct route and only one delivery point, merchandise reaches its destination more swiftly. It’s one of the most economical methods offering short delivery times and although faster options exist, they often come at a significantly higher price.
Safe transportation
Cargo consolidation professionals ensure the secure transportation of merchandise from its origin to its delivery point. It’s a low-risk transportation method for the products being shipped.
Reduced Emissions
Combining loads from different companies reduces the environmental impact of transportation. It requires less fuel, thus lowering the emission of harmful gases into the environment. Apart from being an efficient and cost-effective transportation method, it’s also more environmentally friendly than other methods of transporting goods.
Confidence in the Service
Managing cargo consolidation isn’t simple. While you can plan it yourself, it’s best to hire logistic services providers who understand the ins and outs of the business. These companies handle transportation needs daily, so they know how to do their job well. Plus, they have technologies to protect the merchandise and find the most efficient routes for transportation.
You’re now familiar with what cargo consolidation is and the benefits it can bring when you hire a company specializing in this service. Now, you can evaluate whether this transportation method meets your company’s economic and efficiency needs.
Keep in mind this method strikes a balance between delivery speed and the associated costs, making it vital for your business’s financial health. It’s one of the top strategies for small businesses or during slower sales seasons due to the time of year.
EP Logistics offers the ideal service for your business. Get in touch with us for a personalized quote without any obligation.
