With the cost of shipping at an all-time high, and a changing world with smaller shipments is it time for corporate moving companies to start operating and offering Groupage shipping services to their clients?
I think it is, and after explaining why, this article goes on to explain how you can bring it into your business as a viable and sensible shipping alternative.
With the impact of COVID-19 and the world’s economies now coming under intense pressure, ocean freight rates are at an unprecedented high. This has led to massive increases in the costs to relocate overseas, and our industry must pass the increased costs on to our clients. But we need to provide cost-effective solutions and if you don’t and your competitors do then you could be left behind and it could be costly to your business.
Traditionally corporate moving companies have used FCL, LCL and airfreight to service the needs of the market. Groupage had not really been an option because it has not been seen as a particularly safe mode of transport and it can take longer to ship whilst we gather shipments together. Not to mention the physical operational challenges it brings in warehousing and container loading with separation of loads. Then there’s the destination service and operation to think of, and additional handling, administration etc.,
In many circles, Groupage has been a dirty word, and someone said to me only the other day that the corporate market would never adopt it as an option. But I am not so sure. I have already seen evidence that some are already starting to offer it as an option, and more are thinking of doing it for their customers. After all, you can still put 200 CUFT in an FCL of that is what the client wants and the account are prepared to pay for, but you could also put in with two, three of ten other consignments in a 40’ HC container and save them thousands of pounds on each move. Ultimately, it’s just about doing it right!
What I would say is that it has been going on successfully for many years, commonly for migrant shipping as we all know. But what many don’t know is that it was also commonplace for shipping antiques decades ago. Over thirty years ago I remember there was a huge market from the UK to the US for British antique furniture and bric-a-brac. Very expensive and delicate items would be purchased by fine art and antique dealers from the other side of the pond, packed expertly, then dealers’ shipments were grouped together in warehouses and shipped in 40’ containers to give good economies to the canny US antique dealers.
I was shipping antiques in those days and have since spent many years in the migrant market as well as the corporate markets, and I believe it’s time for change and an acceptance that groupage shipments for corporate moves are the way forward. I know it works!
So, can this be introduced into your business? With a good understanding and careful planning of every aspect both operationally and administratively it can.
You will need to have the packing, marking and inventory of each job spot on every time. Every job will need to come via your warehouse so keeping them separate and safe until you’re ready to load is essential. Then the loading and separation in the container needs carefully thought through, planned, and executed so that shipments aren’t mixed. Checking shipments into the container to ensure nothing is left behind might sound like common sense, but again it must be executed properly every time.
At destination, your operation or partner’s operation will need to understand exactly what to do when receiving, unloading, and handling your groupage shipments and have everything in place to check everything that comes out of a container matches your paperwork and is correct and in order. They will have to separate shipments, store them safely, then deliver them, without mixing them up.
Processes are the answer. It really is not difficult and just comes down to having a robust process in place and training of operatives involved in the process. I have seen enough of it and been involved enough to know that Groupage really is not a dirty word or an inferior service when it is done right.
Consider, is it time to change and give a viable, cost-effective alternative to your client?
Is it time to offer Groupage?
