Definition and explanation of consolidated cargo
"Consolidated cargo" refers to different types of goods that are collected for common transport. In logistics, it is common to group smaller consignments from different shippers and transport them as one unit. This process is cost-efficient and environmentally friendly as it reduces the number of trips. Consolidated cargo can include anything from parcels to pallet loads. It is usually organised by freight forwarding companies that offer consolidated cargo services. These companies are responsible for collecting the consolidated cargo from various locations, storing it in a warehouse and then delivering it to its final destinations.
Difference between consolidated cargo and general cargo
"Consolidated cargo" refers to goods that are sent from different senders to different recipients, but are grouped together in a single shipment. It is mainly used for smaller consignments to save on transport costs. "General cargo", on the other hand, refers to larger, individual items that are transported individually.
These items are often bulky and heavy, which means they cannot be easily combined with other goods. General cargo is often used for special deliveries where the goods are transported directly from the sender to the recipient. The main difference between consolidated cargo and general cargo is therefore the size and type of shipment.
Groupage in the logistics sector
Combining a large number of smaller consignments into one larger load and transporting them together is called groupage. This process is an essential part of the logistics industry. It enables efficient transport of smaller shipments, reduces logistics costs and minimises the environmental footprint. Companies collect shipments from different senders, bundle them into one large shipment and deliver it to multiple recipients. Groupage shipments are often organised in regional hubs where the goods are sorted and loaded onto the appropriate vehicles. Consolidated cargo can range from different types of goods, from food to electronics.
Importance of consolidated cargo for companies
Instead of requiring separate vehicles for each small delivery, consolidated cargo enables efficient use of transport space. This leads to a reduction in fuel consumption and emissions, which in turn improves environmental performance. In addition, consolidated cargo improves logistics performance by optimising loading and delivery processes. It also facilitates shipment tracking by reducing the number of units that need to be tracked. However, it is important that companies take into account the possible delays caused by waiting for sufficient consolidated cargo.