When your cargo is ready to hit the road for delivery but your freight volume can’t justify the cost of a full truckload, what would you do? For many shipping agencies, it comes down to choosing the lesser of two options: ship via expensive less-than-truckload (LTL) or wait to build a full truckload and risk missing user requested arrival dates. However, there is a third option: consolidation cargo services (or “load consolidation services”) with a third-party logistics (3PL) provider, where your items “shares the ride” with others like yours.
Suppose you’re going to the airport at the same time as several of your neighbors. Will it make more sense for each of you to spend the effort, money, time, and energy to drive there separately, or to share those costs by hiring a van to transport everyone? If the latter option makes more sense, then freight consolidation could become a go-to strategy for your supply chain.
In addition to the cost- and time-saving benefits mentioned above, load consolidation has several additional benefits:
Fewer touch points. With load consolidation, your items are only touched twice before it reaches its destination – by the 3PL and the pool provider. Conversely, an LTL shipment could involve multiple trucks – and thus multiple touches – during its journey which increases the possibilities for damages to occur.
Quicker delivery times. Not only you avoid the time of building a full truckload yourself, but you’ll also gain quicker delivery times with freight consolidation services as there are typically no stop-offs other than one for very large cargo. A cross-country shipment will typically take anywhere from 6-10 days with the routine one but only 3 days using load consolidation.
Sustainability. In a world of increasing environmental concerns, by sharing the ride and using one truck instead of multiple trucks separately, reduces carbon emissions as well as congestion.
Simplicity in Pricing. You can rely on simple zero-complicated pricing with the 3PL consolidating your load. The rates are based on miles travelled and the weight of your load. Whether you’re shipping paper clips or huge end cap displays, it’s easy to find out what you’ll pay.
Better carrier-shipper relationships. Cargo consolidation helps carriers reduce their overhead costs. When shipping agencies can reduce their carrier partners’ costs, obviously, the carrier will see the agency as a “Shipper of Choice” making the shipping agency’s freight more attractive. Considering the benefit of lower transportation costs, a carrier prefers to make a more significant profit from consolidated shipments.
Of course, any consolidation strategy will have some amount of risk present, but the benefits outweigh the potential drawbacks in consolidation
Since the variety of schemes is increased exponentially, shipping companies bring out ways to improve their inventory availability and move inventory closer to end-users and consumers. Moreover, cargo consolidation services offers better rates with freight forwarders by increasing the freight shipping volume, even if it requires consolidation of shipments from multiple shippers.
Based in UAE, DUNE’s robust consolidation cargo program helps its customers cut retail distribution costs effectively. Our professional team brings out the maximum productivity by delivering the good in the best condition on time. This trait of ours makes us the best cargo service company in UAE.