Groupage: Definition and Examples

What is Groupage?

The term “groupage” originates from the logistics and transportation industry and refers to the consolidation of individual shipments from different senders into a single transport. These smaller consignments are combined to optimize transport capacity and reduce costs. Groupage is particularly important in international trade, as it allows smaller shipment volumes to be transported economically as consolidated freight. This enables companies to benefit from lower freight rates and more efficient supply chains.