Groupage is a method used in the importation of goods. This mechanism takes place when the quantity of such merchandise is insufficient to fill an entire container, having to be “grouped” with that of other importers to fill it.
If you are importing from China for the first time, you will probably have to resort to groupage. Occasionally, we will see that some companies refer to groupage with the word “consolidated”, using both interchangeably. Most commonly, the groupage service is provided by a specialized company, freight forwarder or other professional intermediary. The price is stipulated according to the volume (in cubic meters) and weight of the goods.
Importing goods by this method is less economical than shipping them in a full container, but it is the best option if our goods occupy less than half of one of these containers. Groupage would be interesting if we are going to import low volume and high cost merchandise (for example in the import of consumer electronics such as tablets or smartphones).
Groupage when importing from China
Small importers in Latin America often seek different products from various suppliers to import from China to their country of origin. Unfortunately, we often find that the quantities are too small to import a full container of each (this would increase the fixed costs at the port of destination).
The best solution is to do it through groupage In this way we will only have to pay the fixed costs once and the import will be profitable. However, the most advisable option is to hire a company that will take care of these formalities. Professional services such as those offered by MingTa are essential when starting an import process. Lack of knowledge of the culture, negotiation methods, language or jet lag can be a major obstacle, and can even cause your operation to fail if it is not delegated to specialized companies.
Putting yourself in the hands of companies like MingTa is a guarantee of success. Proof of this, is the award they were given at the 4th edition of the Offshore Excellence Awards, where they were recognized as the best procurement company in China in 2017. If you need to resolve any doubts before venturing to buy in China, you can send your questions via e-mail, info@mingtagroup.com, or through our contact form.
