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Thursday, September 26, 2019

6 Key Requirements for Cargo Consolidation Services: A Must Know!


Requirements for cargo is regarded as the dependencies which are the relationships between conditions, events, tasks, such that one cannot begin or complete a task until one or more conditions or tasks have begun, occurred or already completed. In this write up, attention would be focused on the key dependencies (requirements) of cargo consolidation. That is, the tasks, conditions or events that has to be met, completed or begun for cargo consolidation to occur.
Note: the key requirements would be regarded as key dependencies for consolidation.

First of all, cargo consolidation is a method of shipping whereby individual consignments from various shippers are combined into one shipment made to a destination agent for a preferential rates. The consolidation is then deconsolidated by the destination agent into the original component consignments and made available to the different consignees.
Key dependencies in cargo consolidation refers to the tasks, conditions and events that must be done, met and completed for cargo consolidation to take place. Such conditions, tasks, or events include but not limited to:
1.      Airline Shipping Requirement: For cargo to be consolidated, there are some basic requirement given by the airline that has to be met. For instance the minimum volume or weight given by the airline must be met for consolidation to take place. The packaging of the cargo must also conform to the specifications of the airline. Thus, airline shipping requirement is one of the key dependencies for cargo consolidation.
2.      IATA Policy: IATA policy is one of the key dependencies in consolidation service. This is because most shipping or freight companies charge using IATA policy and the policy states that whichever is higher between actual weight or volume weight should be charged upon. Thus, this is a key dependency in consolidation.

Read: Why Charge Shipment with Volume Weight / dimensional Weight Instead of Actual Weight


3.      Airline Space Availability: Also, for consolidation service to be carried out, the airline space availability must also be considered. Since airline space availability determines booking, it is a key dependency for consolidation service.

4.      Inability to book as at when due: Inability to book as at when due is a key dependency in consolidation service. This is because if this occurs, consolidation would not be shipped out of the country of origin. It is important to book a week or 10 days before the take off. However, if the required weight or volume of cargo is not yet met, booking cannot be made which would result in late arrival of cargo. Thus for a consolidated shipment to arrive in good time, booking should be done as at when due.
5.      Nature of Goods: This is also a consideration when it comes to consolidation. Some goods are classified as dangerous and as such can be dropped when they get to the airline.
6.      Season of the year (4th Q fever): The fourth quarter of the year normally runs from October to January ending. It is usually a season of celebration and as such, there is usually rush of the market and the industry at large. The rate for shipping would increase and cargos might arrive a little late. It is therefore expedient to consider the last quarter of the year or season while shipping or while considering a consolidation shipping service.

It should be noted that this list is not exhaustive as there are other key dependencies pertaining to subscribing to the consolidation services. For more information, questions or inquiry, do call 08032241768. You can also send us a mail at customercare@valuehandlers.com.
About the Blogger: Valuehandlers is a Supply Chain Management Company Specializes in Air & Sea Freight Shipping, Customs clearing & Cargo Servicing from and to 80 countries.
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