Get to know the vital terms of Logistics and Supply Chain Management.
Groupage, also known as LCL or Less than Container Load, is an encapsulation in the logistics world, referring to transporting various small shipments contained in one single container. Hence, groups carry cargo that is not enough to fill up an entire container. It, therefore, becomes possible for businesses whose cargo volumes happen to be small to share the available container space with other shipments, and this way, businesses of every size are able to enjoy a cost-effective solution to international shipping.
In groupage, several shipments from different owners and with different Bills of Lading are collected into one container. This method is usually used for deliveries which do not fill an entire container but still have to be shipped in an efficient manner. Here, every customer pays for the space his cargo occupies in the container, making groupage very economical for business enterprises.
Groupage is indeed ideal for companies that may not need to transport large quantities but would still like to have an international shipment. The costs to shipping are decreased because the space of the container is divided among the various shipments. It also provides flexibility and small companies an access to the global market without having to load a full container.
With groupage, businesses can save on a great deal of shipping costs and still have the reliability of the supply chain. Often preferred in high-turning, low-trade industries, groupage allows for the efficient distribution of goods with the spending kept as low as possible.
Groupage, or LCL, is the best method through which companies can transport small volumes of products; in this process, it will save money for them as it reduces the shipping costs whereby they can deliver their goods effectively on time over borders.