Is Road Freight Groupage the Secret Weapon Against Rising Freight Costs?
Simarco’s Perspective on Consolidated Loads
The European Road freight market in 2024 and 2025 is defined by volatility. Diesel prices are again trending upward; national toll structures are evolving; with several states implementing CO₂-based charging and the driver shortage shows no signs of easing. At the same time, inflationary pressures on wages and operational costs continue to push freight rates higher. Even in periods of steady demand, the cost of moving goods across the continent has become increasingly unpredictable.
For exporters and importers, that volatility is exhausting. And it’s why a lot of cost-conscious businesses are asking: Could groupage be the practical fix?
Instead of committing to a full truckload (FTL) for every shipment, regardless of utilisation, a growing number of businesses are adopting groupage (less-than-truckload, or LTL) services to pay only for the space they require.
Groupage: A Cost-Efficient Alternative
In practical terms, road freight groupage functions are much like a shared transport service. Multiple shippers’ consignments are consolidated into a single trailer, each paying proportionally for the pallet space they occupy.
Historically, groupage was often perceived as a solution for smaller shippers unable to fill a vehicle. However, the economics of 2025 are making it equally attractive to larger organisations, particularly those experiencing fluctuating weekly or seasonal volumes.
Key Cost Drivers in 2025
Several structural cost factors are reinforcing the case for groupage:
- Fuel Costs: Diesel prices remain significantly above pre-2022 levels, maintaining elevated fuel surcharges across the industry.
- Tolls: European adoption of CO₂-based truck tolls is expanding, while other jurisdictions have already increased rates. Future contracts are being priced with these increases in mind.
- Labour Pressures: The shortage of qualified drivers across Europe continues to drive up wages, directly impacting freight rates.
- Freight Rate Trends: According to the latest market data, freight rates are 32.2% higher than the baseline (typically set at 100). Although short-term (spot) shipping prices have gone down, long-term (contract) rates have increased, making it more important for businesses to stay flexible with their transport options to manage costs effectively.
These pressures make unused trailer capacity an expense most companies can no longer justify.
The ‘Half-a-Truck’ Threshold
For many lanes, the financial break-even point between groupage and FTL is in the 8–12 pallet range. Shipments below this threshold typically see cost benefits from groupage. Above it, FTL can often be more competitive, especially when speed is a critical factor.
Longer cross-border hauls tend to amplify groupage savings, as fixed costs such as tolls and fuel are distributed among multiple shippers. Furthermore, consolidated loads inherently reduce empty space on the road, contributing to lower CO₂ emissions, a growing priority for both customers and regulators.
Simarco’s Groupage Advantage
Here at Simarco we operate one of the UK’s most extensive pan-European groupage networks alongside our FTL and domestic services. Our approach is designed around operational flexibility.
David Knowles, European Operations Director, said “Over the years of the continued development of our European groupage product, Simarco have been able to offer a ‘best in class ‘solution for our customers ensuring service levels and transits times is met at a highly competitive price point. From one carton to 33 pallets we are in the position to flex as required. Flexibility is key and our European infrastructure allows for this”.
Our model features regular scheduled departures to all major European destinations, supported by a network of partner depots to expedite deconsolidation and final delivery. This consistency mitigates the additional day or two typically associated with consolidation compared to a direct FTL service.
Market Sentiment
Feedback from industry forums and professional networks indicates a noticeable shift. Businesses that once defaulted to full loads are now benchmarking groupage more frequently, particularly for volatile-volume lanes. Case studies frequently cite savings of several hundred euros per trip when moving eight pallets via LTL compared to a dedicated vehicle, without measurable service degradation.
Best practice from these shippers is clear: conduct a lane-by-lane cost comparison whenever volumes approach the 8–12 pallet range, factoring in not just base rates but also tolls, surcharges, and any handling fees.
Final Word
Road freight groupage is not a universal solution. For full trailers of urgent cargo, FTL remains the preferred choice. However, for variable or sub-FTL volumes, groupage offers a viable, cost-efficient, and environmentally advantageous alternative.
Simarco’s ability to seamlessly transition customers between groupage and full loads provides a competitive edge in a market characterised by unpredictability. In today’s operating climate, that operational agility is not merely a convenience, it is an essential component of effective freight cost management.