Consolidated Freight Shipping: Pros and Cons
When shipping freight, cost is one of the factors to be considered when choosing a viable transportation method. Consolidated Freight Shipping (CFS) is one option that can be more economical, but it does have its drawbacks, too.
Consolidated freight shipping combines multiple smaller loads, all heading to the same location, into one full shipment. The shipper only pays for the space used, thus making it more cost effective. Consolidated freight shipments can contain multiple loads from one company, or more often, cargo being shipped by multiple companies.
A Shared Shipping Concept is Born
The notion of consolidated freight shipping dates back to the early days of ocean transport. Each shipper carried the responsibility of loading, unloading, and securing their cargo on board the ship. This proved to be very time-consuming and at times dangerous for crew on the ship who needed to traverse their way through the cargo areas while out at sea.
These issues were remedied by allocating the responsibility of all cargo to one shipper. By utilizing a single shipper, all freight could be efficiently organized and safely secured on the vessel. This permitted optimization of available space, allowing for larger loads, thus reducing shipping costs for all.
Benefits of Consolidated Freight Shipping
There are notable advantages to consolidated freight shipping, including:
Cost Reduction
One of the primary advantages of CFS is its cost-effectiveness. By combining loads, companies can share shipping expenses. For example, if transporting by truck, each shipper pays for the space their cargo utilizes rather than having to pay for the entire trailer. The same philosophy applies to air freight services.
Optimized Capacity
The practice of consolidating freight involves optimizing the available space within the mode of transportation. Rather than sending a partially filled container, truck, or cargo hold, consolidating shipments ensures that the maximum capacity is effectively utilized.
Sustainability
Consolidated freight shipping also offers an environmental benefit. Rather than several trucks out on the road running the same route, a single truck carrying consolidated shipments means less carbon dioxide in the air.
Smooth Customs Clearance
For shipments travelling internationally, CFS can simplify the customs clearance process. Paperwork and customs documentation can be streamlined by having multiple loads consolidated into one container or mode of transportation.
Disadvantages of Consolidated Freight Shipping
Organizing and Planning
Consolidated freight shipping does require a significant amount of planning, coordination and organizing to ensure shipments headed to the same location are grouped together correctly. This process is considerably more complex compared to full container or full truckload shipping.
Increased Transit Time
While CFS can be cost-effective, it generally takes longer than direct shipping methods. This is due to the consolidation process, where cargo is gathered and sorted according to its intended destination. For time-sensitive goods or perishable items, this extended transit time most likely eliminates CFS as a shipping option.
Tracking Difficulties
It can be very challenging to track individual shipments within a consolidated container or truck. Since cargo originates from multiple locations, real-time monitoring of specific pallet(s) throughout the transportation process can be a bit more complicated.
Flexibility Limitations
With several shipments riding together to a single destination, pickup and delivery schedules are relatively strict. Shippers don’t want their cargo sitting around while waiting for other goods to arrive, just to share a ride so-to-speak.
Finding the Right Shipping Method for You
Transporting cargo safely and efficiently as possible is a top priority for all companies. At Grand Aire, we specialize in finding the optimal transportation method to fit each shipper’s needs.
Let us put our 35+ years experience to work for you. Our Logistics Specialists are accessible 24/7/365 and skillfully trained to locate and secure the best shipping options available. Contact us at 1-800-70-GRAND or email our team directly at logistics@grandaire.com