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Groupage from China: how consolidation works and when it pays

If you buy two cubic metres from each of five factories, a warehouse in China saves more than money: one document set removes half the trouble at customs.

Published 5 min read

Groupage (LCL) means consignments from several shippers travel in one container. You pay for the actual volume, not for the whole box. It sounds simple, but in practice half of an importer's problems start right here — with who collects the cargo in China, and how.

How it works, step by step

  • You receive a warehouse address in your name and a personal client code to pass to the factories.
  • Factories deliver cartons to the warehouse. Every package is received, counted and photographed.
  • Items already delivered wait for the rest free of charge — usually up to 30 days.
  • Once the lot is complete, cargo is palletised, labelled and stuffed into the container.
  • A single invoice and packing list is issued for the whole lot, and the cargo departs on the chosen route.

When groupage does not pay

There is a break-even point. From roughly 15–18 cubic metres, a full 20ft container costs less than the same volume in groupage. FCL is also faster: the box is not opened en route, does not wait for co-loaders and is not broken down at the terminal. If your volume is trending up, model the switch to FCL in advance.

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