Increased use of groupage operators opens up freight market

SHIPPERS have begun using more groupage operators this month in an attempt to reduce spend on deliveries.

Groupage providers, who tend to deliver a group of parcels in one load, operate more cheaply and economically than express operators whose primary objective is accelerated delivery.

This reduces costs for large companies who do not necessarily need to rely on courier and express networks for their shipping requirements.

Providing an equally reliable service at a slightly slower transit time, groupage operators have risen to the challenge of competing against express companies by offering comparable options and further driving down prices.

Daniel Parry, Managing Director of deliveryquotecompare.com, a free to use price comparison website for shipping, transportation and courier services, said: “This is great news for the freight market, increasing healthy competition and providing more choice for end-users.

“We have certainly noticed an increase in visitors to the site, hence a trend in shippers looking for the more economical and cost-effective options, which can be expected in times of tough credit conditions.

“The groupage operators themselves have really upped their game in the last few years, and have done a great job of encouraging new business.”

One such groupage operator, Starlight International Shipping Limited, agree that there have been changes in the market.

Managing Director John Papworth said: “Whereas before there were a lot of express operators around, there are now much more groupage providers, and recently we have seen an increase in requirements for groupage services.

“I think this is because the economy has forced people to look much more closely at their costs than before.”

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