Consolidated shipping is a smart logistic move which can be effectively used in international trade.
Such service fits the most for those buyers who order from several suppliers or in small quantities.
This guide is dedicated to the important details of the consolidated shipping process, like its stages, main rules and so on.
How Bansar arrange my consolidation shipment?
The whole consolidation process can be divided into the following steps.
Step 1. Bansar gathers your packages from various suppliers
Some suppliers might deliver their goods to our warehouse themselves, however, Bansar carriers can provide you a pick service.
Step 2. Bansar packs your goods together
If needed, an additional package for parcels might be used.
Doing so, we can guarantee that your products will get to you in one piece.
Step 3. Bansar produces all the needed documentation for consolidated shipment
These documents are needed for the carrier, import/export customs clearance, as well as for insurance coverage (if you previously chose such an option).
Step 4. Bansar delivers the consolidated freight to the carrier for later transportation
After the delivery is done, and the customs procedures are performed, your consolidated freight arrives at your premises.
Note: if the container was filled not only with your cargo, the last step will be slightly different.
After the consolidated shipment is cleared, it is taken to the inventory management center, where it is divided into the initial parcels.
Finally, your package will be delivered at your premises.
What is a consolidated shipment?
A consolidated shipment consists of multiple LCL (LTL, less than container/truckload) shipments from various suppliers into one shipping container (truck).
Consolidated shipping is a great way to earn profitable rates and to optimize supply chain logistics by saving time.
On average, the volume of the package for consolidation does not exceed 15 cubic meters (approx. 530 cubic feet).
What do I have to do to require consolidated shipping?
If you wish to use consolidation shipping services from China, please, feel free to contact Bansar high-qualitative support staff.
We will guide you through the deal with your suppliers, provide you 24/7 support and help your business to improve its positions.
Can I add items to my shipment after the package consolidation request has been completed?
And again, this is not the case of consolidation shipments.
Continuing the previous answer: after the consolidation request is complete no further actions allowed.
- What is a consolidated shipment?
- What is a consolidated package?
- What do I have to do to require consolidated shipping?
- Are there some special fees connected with consolidated shipping?
- How Bansar arrange my consolidation shipment?
- What are the main stages?
- Which trade parties can help me to consolidate goods?
- What are the main benefits of consolidated shipping?
- What is consolidation warehousing?
- Is it the same with a mixing warehouse?
- What is a consolidation agent?
- How does a consolidated shipment influence the final price?
- Can I divide my order once it consolidated?
- Can I add items to my shipment after the package consolidation request has been completed?
- What does “Held for consolidation” status mean?
- What is load consolidation?
- What are the main challenges of consolidated shipping?
What is a consolidated package?
Shippers refer to the term of the consolidated package when describing the process of:
- placing smaller packages into one single big box or the process;
- unpacking multiple boxes in order to place all the items inside the same box.
Are there some special fees connected with consolidated shipping?
Yes, there is one special charge which you have to pay in terms of the consolidation shipment.
It is called the consolidation charge, which you have to pay in favor of your freight forwarding company.
Basically, this a service fee for gathering and packing several smaller shipments into one big container (box).
Consolidation fee is also known as the assembly service fee, cargo consolidation charge, freight consolidation fee.
Even though the buyer has to pay such special fee, he can save a lot of money due to small freight charges.
Which trade parties can help me to consolidate goods?
There are three parties which can consolidate your goods: carrier, freight forwarder, and the buyer.
In the vast majority of cases, the manufacturer will send your LTL goods to the warehouse of carrier and freight forwarder for later consolidation.
However, you have to keep in mind that even not all the carriers provide consolidation services.
This happens for various reasons, mainly due to the danger of damaging products.
Eventually, the most reliable party in such a situation will be a freight forwarding company.
Please, contact Bansar support if you want to require more info about the consolidation shipping services.
What are the main benefits of consolidated shipping?
Let’s speak more of the consolidated shipping benefits and why you have to use it when ordering LTL cargo.
Actually, we have four clear reasons for you.
#1. Cost advantages
There are various ways in which the consolidated shipping can save you money.
You won’t have to pay for empty truck space that you don’t use.
You will only pay for the space your cargo takes up and nothing more.
We’ll head back to the costs saving question later in this guide.
#2. Safety advantages
First of all, having your freight consolidated means that it will be loaded on fewer trucks.
Logically, this assumes smaller chances that one will be involved in some kind of accident.
Because your product is handled less, there is practically no risk that something will go missing, or that your goods will be sent to the wrong destination.
#3. Improve your relationships with various trade parties
Consolidated shipping is a smart and efficient move also because you will be able to build relationships with other companies, customers, and different carriers in the process.
First, you can become familiar with other companies who rely upon small shipments.
You can establish a shipping partnership with such businesses and eventually reduce your costs.
#4. Improved flexibility and time management
Consolidation service might also help to improve the transit time and flexibility of your shipping processes.
When your cargo comes to a consolidation facility, it can be immediately shipped with products from other customers.
Is it the same with a mixing warehouse?
Consolidation warehouse is storage where small shipments from various suppliers are put together and combined into larger, more efficient shipping units.
Such cargo is typically intended for delivery to the same geographical area.
Mixing warehouse is another name for the consolidation warehousing storage.
Note: not all warehouses provide consolidation options to their clients.
What is a consolidation agent?
Consolidation agent is a person or company who provides to its clients’ consolidation and other connected services (for example, paperwork).
This role can be performed by a freight forwarding agent.
Bansar has its own warehousing facilities and all the needed equipment to provide such services with brilliance.
How does a consolidated shipment influence the final price?
Let’s mention that there are a lot of ways how the consolidated freight can improve the final price for you.
We’ve already figured out that your overall cost of shipping will be lowered because you won’t be paying for empty space inside the container.
You’ll also get the bulk rates for your shipment due to this fact.
If you are working with retailers, your customers can save some money as well!
By combining clients orders at a consolidation warehouse, you will be able to perform the delivery much faster.
This leads to more frequent purchases and more cash will be flowing into your business, while your customers will save on shipping costs.
By using consolidation shipping, you can also avoid the heavy costs that come along with warehouse services and having your own fleet of vehicles.
As you may assume, the price savings can be significant enough to make a big difference in your company’s bottom line.
Can I divide my order once it consolidated?
No, in the better part of cases the carrier (freight forwarder) won’t let you divide your order after the consolidation is done.
The first reason for this is obvious: repacking goods brings a lot of hassle to the carrier.
But, what is even more important, dividing of the consolidation order means that the carrier has to rewrite all the papers connected with each package inside the container.
As a buyer, you have to be sure that you’ve listed all your parcels before you request the consolidation services.
What does “Held for consolidation” status mean?
“Held for consolidation” is a status which you can see while tracking your LTL delivery.
Obviously, it means that your shipping is going through the consolidation process, e.g. waiting in the fulfillment center for other packages arrive to load together.
What is load consolidation?
Load consolidation is the same as consolidated shipping.
The term itself is more used among carriers because they have to calculate the load on their vehicles.
What are the main challenges of consolidated shipping?
Despite its clear advantages, consolidated shipping is a service which also has several flaws.
First of all, the rates for FCL shipments (full container load) are still better than for LCLs.
Secondly, the speed of the FCL movement is also better because such clients don’t have to wait for all packages to be gathered in one place.
Finally, consolidated shipping is not the option for unusual cargo (for example, non-standard sized cargo, some types of palletized cargo, etc.)
However, consolidated shipping is frankly the best option for LCL buyers and with Bansar services it might be as effective as the FCL delivery.