Exploring the many roles of consolidated freight management in Canada

Exploring the many roles of consolidated freight management in Canada

In the realm of international trade, efficiency in the case of shipment of products becomes an extremely critical factor as it paves the way for businesses to operate in the perfect manner in the foreign markets as well as to deal with the local competitors. With efficient shipment processes, businesses can ensure that the freight movement is done at prices that are quite manageable between different markets. One such strategy that ensures an efficient shipment process revolves around consolidation of freight. 

 

The concept of freight consolidation 

The concept of Consolidated Freight Canada is associated with the process of shipping multiple shipments together in just a single container. This could involve a single shipper consolidating different or disparate shipments into one single container. 

 

Freight consolidation is a way with the help of which freight forwarders and shippers can actually manage small volumes of shipment by putting or combining the shipments into a single container space. But in order to make sure that Consolidated Freight in Canada works well, the freight which is being shipped must be associated with the same category of products and the shipment should go through the same route. This makes the process of consolidating the freight much simpler and it becomes easier to handle the entire process. 

 

The working of the freight consolidation process

So how is it exactly that the Consolidated Freight in Canada actually works? 

• Shipments of small volumes are collected that are to undergo the process of freight consolidation 
• The shipments next are grouped and this is done on the basis of the category of the products, the shipping routes involved and most importantly the final destinations.
•  Next the shipments which were grouped previously are loaded into the container and they are arranged and also care is taken to ensure that the products do not get damaged during the process of shipment.  
• Next the process of transportation can be done by means of the truck or the carrier vessels that move through the oceans. 
• Finally the bigger container arrives at the destination port. There the products are unloaded and they are transported to the final destinations. 

The different freight consolidation types 

Consolidated Freight in Canada can be of three different types and each finds a fine use at different points in the process of shipping. 

 

• Consolidation done at the origin: This is often applicable in the case of operations associated with international shipping. In this, the shipments are consolidated at a particular facility which could include a factory or a warehouse or a distribution center before the shipments are transported to the final destinations. This is a kind of consolidation that ensures economies of scale, simplifies the process of tracking the shipments and also involves less handling. 

 

• Consolidation that takes place at the destination: This kind of consolidation is mostly leveraged by the domestic or the local shippers. In this, each shipment is transported to a particular central destination before the consolidation of shipment takes place. This central destination is located at a place which is closer to the final destination. Next the shipments are delivered to the respective destinations. This process ensures a lot of flexibility and leads to a reduction in the transit times involved. 

 

• Consolidation during the in-transit phase: In this, the shipments are consolidated at the different points during the transit and the shipments are transferred between the different modes of transportation. This kind of consolidation exposes the products to certain specific dangers and also increases the handling process. 

 

Enhancing the shipment efficiency 

What is the role that the Consolidated Freight in Canada performs that leads to an enhancement in the efficiency of shipment?

 

Freight consolidation has two important roles to play as it improves the efficiency of shipment for shippers as well as freight forwarders and also the stakeholders. 

 

The transit times get reduced in an extensive manner: The consolidation of freight ensures that the utilization of the resources associated with the transportation are optimized and this leads to a reduction in the transit times. The smaller shipments from the different sources are combined into loads that are consolidated ones. This ensures that the delays which the shippers experience are avoided and such delays are most of the time associated with less-than-truck load or LTL and also less-than-container-load or LCL shipments. 

 

The routing is optimized: Freight consolidation is a process that enables carriers to make the most of tech solutions for routes that are more direct and in this way the detours which are absolutely unnecessary can be avoided. These routes which are optimized ones lead to a reduction in the distance that is traveled and also leads to a reduction in the consumption of fuel. This again lowers down the negative impact which is created over the environment. It indeed is a great solution as it leads to faster deliveries as well as ensures that the costs are reduced. Thus it guarantees sustainability in the sector of logistics. For instance, a logistics provider can make great use of the software that is associated with advanced route optimization to obtain the best results. 

 

The many benefits associated with freight consolidation 

There are many benefits associated with Consolidated Freight Canada and some of them are listed down as follows:

• Efficiency in the process of shipment - this happens to be the primary benefit associated with freight consolidation 
• When multiple shipments are combined into a big cargo then it ensures that the costs of transportation are minimized and the costs of shipping are reduced as the businesses and the shippers share the costs associated with the transportation of the products.
• In the case of the LTL and LCL shipping procedures the shipment is often exposed to damages. The process of freight consolidation leads to a reduction in the chances of such exposure and this reduces the possibilities of disruptions in the process of shipping. 
• Consolidation of shipment implies that the number of vehicles on the road are fewer in number. This ensures that the carbon emissions are reduced and the negative impact over the environment is also greatly reduced. It is quite a beneficial impact as the sector of logistics is known to emit the greatest amount of greenhouse gases.

GroupYard happens to ensure that the shipment is carefully consolidated and shipped in an efficient manner. It takes care that the products are not exposed to potential damage and that they reach their respective destinations safely. 

 

FAQ
 

What is the concept behind freight consolidation?

The concept of freight consolidation is associated with the process of shipping multiple shipments together in just a single container. This could involve a single shipper consolidating different or disparate shipments into one single container. 

 

What factor is important to ensure the smooth functioning of the freight consolidation process?

In order to make sure that the freight consolidation process works well, the freight which is being shipped must be associated with the same category of products and the shipment should go through the same route.

 

Mention some of the benefits associated with the process of freight consolidation

Costs of transportation are minimized. Consolidation of shipment implies that the number of vehicles on the road are fewer in number. This ensures that the carbon emissions are reduced and the negative impact over the environment is also greatly reduced.

 

How is sustainability guaranteed as a result of the process of freight consolidation in the sector of logistics?

The optimization of the routes ensures detours are avoided and the distance travelled is also reduced. This leads to less consumption of fuel. Faster deliveries are ensured and the negative impact over the environment is lesser due to reduced carbon emissions. This guarantees sustainability to a great extent.