What is co-loading?

Co-loading is a term used in export and import trade especially in the area of freight forwarding. 

• What is co loading? 
• How does Co loading work? 
• Is there any advantage in Co loading? 
• What are the demerits in Co loading?

The term co loading means transferring cargo by a freight forwarder to another carrier either to a freight forwarder or consolidator. Co loading is a common procedure in import export trade especially for less containerload – LCL - transactions. Under LCL shipments, some of freight forwarder co-load cargo to another freight forwarder final destination. The carrier who co-loads the cargo is called co-loader.

Co-loading with more than two freight forwarders is not a good practice as the destination delivery order charges and the formalities makes shippers and consignees more complicated rather than monitory loss under destination delivery charges.

For example, 

if A accepts cargo from X and co-loads the cargo with B. B again transfer goods to C a main carrier of goods. At destination port, Z who is the representative of C delivers cargo to Y who is the representative of B at load port. At destination port, Z collects Delivery Order Charges from Y, Y collects Delivery Order Charges from X and in turn, X collects Delivery Order Charges from Y.

Is there any advantage in Co loading?

Freight under co loading could be cheaper, as some of the co-loaders have competitive freight rates to various locations. The cost of carriage could be lower, if moved through a co loader. However, such advantage has to be balanced with the destination delivery charges and other inconvenience, if more than one co loader involved.