What is Co-Loading? The Benefits, Challenges, and How to Get Started
Co-loading, also known as shared truckload or freight pooling, works like ride-sharing but for freight. It involves combining shipments from multiple companies into the same transportation vehicle. Businesses can consolidate full truckload (FTL) with less-than-truckload (LTL) shipments, merge several LTL loads, or even combine multiple FTL loads into one collaborative shipping operation.
How is Co-Loading Different from LTL?
At first glance, co-loading might seem similar to LTL shipping, as both allow multiple companies to share space on the same truck. However, there is a key difference: LTL freight is consolidated through a hub-and-spoke carrier network, while freight consolidation in co-loading is done directly via multi-stop trucking. Consequently, this method avoids unnecessary handling and often reduces transit times.
The Benefits of Co-Loading
Co-loading creates value for shippers, receivers, and society as a whole.
1. For Shippers:
Reduce transportation costs—by up to 30% on certain routes
Shorten delivery times compared to LTL
Lower the risk of loss or damage from excessive handling
2. For Receivers:
Reduce inventory levels through optimized delivery
Lower receiving costs due to fewer, more efficient shipments
3. For Society:
Reduce carbon emissions
Decrease road congestion and wear-and-tear on infrastructure
Challenges of Co-Loading
Despite its advantages, load sharing is not suitable for all freight types. Shipments must be compatible, fit within the same truck type, and align in terms of timing. Without these factors, collaborative shipping may not be feasible.
What Types of Freight Are Suitable for Co-Loading?
Co-loading works best for freight that is handled in the same way—for example, palletized cargo transported via dry vans.
From a shipment size perspective, freight pooling is ideal when combining larger LTL loads with smaller FTL loads. Geographically, shipments with similar origins and destinations are easier to match. While freight from the same industry is often more compatible, it is not a strict requirement.
Why Hasn’t Co-Loading Become More Common?
Although multi-stop trucking has existed for decades, technology limitations once made it difficult to scale. However, advancements in big data analytics now allow companies to evaluate cross-company shipping patterns and make data-driven co-loading decisions.
Additionally, more businesses are realizing that collaborative shipping can achieve cost savings and efficiency gains that would be impossible to achieve alone—especially in the face of rising transportation costs.
Different Approaches to Co-Loading
There are two main forms of freight consolidation:
Passive (Opportunistic) – If timing, volume, and other factors align naturally, shipments are combined.
Active (Planned) – Shipments are deliberately scheduled or resized to enable co-loading.
Active co-loading requires more coordination and may impact supply chain inventory decisions. However, it can lead to greater cost savings. Therefore, it’s often best to start with opportunistic load sharing and gradually move toward planned strategies.
Impact on Service Levels
For LTL shipments, co-loading can actually reduce delivery times because it avoids the delays of hub-and-spoke networks. For FTL, bulk, and intermodal freight, the impact is minimal when routes are well-designed.
However, the more stops a multi-stop truckload makes, the higher the risk of delays. That’s why route optimization and careful planning are crucial.
How to Get Started with Co-Loading
Businesses can begin collaborative shipping in two main ways:
DIY (Do-It-Yourself) – Shippers identify partners, share data, and use supply chain engineering resources to assess opportunities. One partner must manage transportation execution to ensure savings are realized.
Third-Party Logistics (3PL) – A 3PL provider can coordinate and manage freight pooling activities, offering scalability and greater benefits, as this is their core expertise.
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