CPG freight is everywhere — packaged food, beverages, household cleaners, health and beauty products, pet supplies, paper goods. The manufacturers shipping this freight range from billion-dollar companies with dedicated logistics teams to regional brands running on spreadsheets. For freight brokers, the opportunity is concentrated at the mid-market and regional brand level, where logistics sophistication is lower and the willingness to work with capable brokers is higher.
What Consumer Goods Freight Encompasses
The CPG category is broad. For freight purposes, the major subcategories are:
Packaged food and beverages — shelf-stable grocery products, snack foods, condiments, beverages in cans and bottles, boxed goods. This is the highest-volume category. Dry van dominates, with reefer required for some fresh and refrigerated products.
Household and cleaning products — laundry detergent, cleaning supplies, paper products, disposables. Products like liquid detergent and cleaners are dense and heavy. Paper products (toilet paper, paper towels) are extremely light but cube out fast — notoriously challenging freight economics.
Health, beauty, and personal care — OTC pharmaceuticals, cosmetics, shampoo, vitamins. Typically dry van; some refrigerated requirements for specific products. Often higher value per pound than food.
Pet supplies — food, treats, accessories, litter. Pet food freight specifics are covered separately; the non-food pet category shares the same distribution infrastructure.
Baby products, toys, and seasonal goods — highly variable by SKU but often moving through the same retailer distribution chains.
What a Routing Guide Is
A routing guide is a retailer's formal instruction set to its vendors specifying exactly how freight must ship when the vendor is responsible for delivery to the retailer's distribution center.
Every major retailer — Walmart, Target, Home Depot, Lowe's, Kroger, Costco, Amazon, Dollar General, Best Buy, TJX — publishes a routing guide. It specifies:
- Carrier selection: Which carriers the vendor must use for different shipment sizes, origins, and destinations. The retailer has negotiated rates with a set of preferred carriers, and vendors shipping to that retailer's DC must use those carriers for TL, LTL, or parcel as specified.
- Lead times and appointment scheduling: How far in advance to schedule delivery appointments and what windows are available.
- Labeling and documentation requirements: Specific pallet labels, ASN (Advance Ship Notice) data requirements, packing lists.
- Shipment size thresholds: The minimum size to qualify for a TL rate vs. LTL vs. parcel.
- Compliance contacts: Who to call when something goes wrong.
When a broker is working with a CPG vendor and that vendor is shipping to a major retailer's DC, the routing guide controls the transportation decision — not the vendor, not the broker. The broker's job is to either (a) be on the retailer's approved carrier list, or (b) understand what mode and carrier the guide requires so the vendor ships correctly.
Collect vs. prepaid is the foundational distinction in CPG freight:
- Collect (retailer-managed transportation): The retailer controls carrier selection and transportation; the vendor ships FOB origin and the retailer arranges pickup. Brokers do not participate in collect shipments directly — they may be in the retailer's carrier program, but the retailer is the customer, not the vendor.
- Prepaid (vendor-managed transportation): The vendor arranges and pays for freight to the retailer's DC. The routing guide still specifies which carriers to use, but the vendor is the shipper of record. This is where brokers working with CPG vendors operate.
Vendor Compliance Programs and Chargebacks
Vendor compliance is how retailers enforce the routing guide. When a vendor ships incorrectly — wrong carrier, wrong label format, wrong appointment window, wrong pallet configuration — the retailer's vendor compliance department issues a chargeback: a fine deducted from the vendor's payment.
Chargeback amounts vary by retailer and violation type, but common ranges:
- Routing violations (wrong carrier): $250–$500 per occurrence, sometimes a percentage of invoice
- Labeling violations: $100–$250 per pallet or per shipment
- Late delivery or missed appointment window: $100–$500 per occurrence; some retailers fine per unit or per pallet
- ASN errors: $50–$200 per shipment depending on retailer
- Non-compliant packaging or palletization: Variable, can be significant for major retail programs
For a mid-size vendor shipping 50–100 loads per month to a major retailer, a systematic compliance issue can cost tens of thousands of dollars per month in chargebacks before anyone in leadership notices.
When does this affect the broker? Directly, when the broker causes the violation:
- You book the wrong carrier (not on the routing guide's approved list)
- The carrier is late to the appointment window
- The carrier delivers without a proper appointment
- The load arrives with labeling errors traceable to how the shipment was booked
A routing violation that results in a $500 chargeback on a $2,000 load is a 25% hit to the shipper. If it happens repeatedly, the shipper will hold you responsible. Sophisticated CPG shippers include carrier compliance requirements in their broker agreements. This is not hypothetical — brokers who operate in CPG without understanding routing guides lose accounts.
The Retail Distribution Center Network
Understanding where loads go helps you understand the geography of CPG freight.
Walmart operates approximately 150+ regional distribution centers in the US. A vendor selling nationally to Walmart ships to a subset of these DCs based on the product category and regional assignment. Full case quantities (not mixed pallets) typically ship TL to these RDCs.
Target runs a similar structure with a smaller DC network (~50 RDCs and flow-through facilities).
Kroger (with its regional banners) operates grocery DCs by region. Grocery distribution is faster-moving and more time-sensitive than general merchandise — out-of-stocks on grocery shelves are a direct revenue loss for the retailer.
Club stores (Costco, Sam's Club) have their own DC networks and routing requirements. Club store pallets often have different dimension and weight requirements than standard retail.
Dollar stores (Dollar General, Dollar Tree/Family Dollar) have aggressive compliance programs and are extremely cost-focused in carrier selection.
The implication for lane planning: a CPG vendor shipping nationally will have outbound lanes from their production facility or distribution warehouse going to 20–50 retailer DCs across the country. The outbound freight is predictable in origin but distributed in destination. The inbound lanes (materials coming into production) are a separate freight opportunity.
Promotional Surge Management
CPG freight has a distinct seasonal pattern driven by promotional calendars, not weather or harvest cycles.
Q4 (October–December) is the dominant surge — holiday season, Black Friday, Cyber Monday, and end-of-year inventory builds create the largest volume spike of the year. Retailers typically require CPG vendors to have holiday inventory at their DCs by mid-October through November for shelf placement. This means the freight surge starts in September and peaks in October–November.
Back-to-school (July–August) drives demand for specific categories — school supplies, packaged snacks, lunchbox foods.
Spring promotional windows (Easter, spring cleaning, home improvement season) affect household and cleaning product categories.
Super Bowl and major sporting events create short, sharp demand spikes for snacks, beverages, and party supplies.
Vendors who don't plan for these surges get caught without capacity. Brokers who proactively reach out in August about Q4 capacity — before the surge hits — get the relationship. Brokers who call in November when the vendor is desperate get one load and a bad rate.
The DTC Disruption and New Freight Patterns
The growth of direct-to-consumer (DTC) CPG brands has created a parallel freight infrastructure that looks different from the retail-routed model.
DTC brands — selling directly through their own websites or Amazon — ship finished product from their manufacturing facility or 3PL warehouse to fulfillment centers, then into the parcel or small package stream for last-mile delivery. The freight brokerage opportunity here is:
- Inbound supply chain: Raw materials and packaging moving to the DTC brand's production facility
- Outbound to fulfillment centers: TL and LTL moves from the brand's warehouse to Amazon fulfillment centers (FBA inbound) or regional 3PL warehouses
DTC brands are often younger, less logistics-sophisticated, and more willing to work with brokers who bring both expertise and capacity. They also don't have routing guide constraints on outbound (unless they sell through retail in addition to DTC), making the conversation more straightforward.
How to Get CPG Accounts
The major national CPG manufacturers — Procter & Gamble, Unilever, Kraft Heinz, General Mills, Kimberly-Clark — operate with established carrier programs, dedicated 3PLs, and logistics teams that are not accessible to most independent brokers. Pursuing them is typically not the best use of a broker's time until you have a track record in the category.
Regional and mid-size brands are the right starting point. A brand doing $20–$100M in revenue, selling regionally through grocery chains and club stores, has real freight volume (50–200 TL loads per month) but often limited logistics staff. They know they need to be routing guide compliant but may not fully understand the requirements. A broker who comes in with routing guide expertise, food-grade carrier options, and proactive communication on compliance is genuinely valuable.
Find these brands through:
- State and regional food and beverage associations — members are often mid-market manufacturers
- Specialty retail buyers' shows (Expo West, Fancy Food Show) — emerging brands exhibiting are actively growing and need logistics support
- Co-manufacturer networks — contract food manufacturers serve dozens of brands and can be a referral source
- Regional grocery chain supplier portals — regional chains that source local products list their vendors in trade press
When you call, lead with routing guide knowledge. Ask if they're currently hitting chargebacks from major retail accounts. Ask how they're managing carrier selection for collect vs. prepaid shipments. These questions immediately signal that you understand their business in a way that most cold calls don't.
Frequently Asked Questions
What is a routing guide and how does it affect my work as a broker?
A routing guide is a major retailer's instruction set to its vendors specifying which carriers must be used, appointment window requirements, labeling standards, and pallet configuration rules for freight shipping to that retailer's distribution centers. When your shipper is a CPG vendor selling to major retail, the routing guide controls the transportation decision. As a broker, you either need to be on the retailer's approved carrier program, or you need to help your shipper understand which carriers are required. Using the wrong carrier triggers a chargeback to your shipper — and they will trace it back to you.
What is vendor compliance chargeback and when does it affect brokers?
A chargeback is a financial penalty a retailer deducts from a vendor's payment when the vendor ships incorrectly — wrong carrier, wrong label, missed appointment window, wrong pallet configuration. Chargebacks typically range from $100–$500 per occurrence depending on the retailer and violation type. As a broker, chargebacks become your problem when you caused the violation: you booked a non-approved carrier, your carrier missed the appointment window, or you failed to ensure proper labeling. Sophisticated CPG shippers will include compliance requirements in their broker agreements and hold you accountable for chargeback costs you cause.
How do I get into CPG freight as a broker?
Start with regional and mid-size brands — companies with $20–$100M revenue that have real freight volume but haven't fully systematized their logistics programs. These brands are more accessible than major nationals and genuinely need logistics expertise. Find them through state food and beverage associations, specialty trade shows (Expo West, Fancy Food Show), and regional grocery chain supplier networks. Lead your conversation with routing guide knowledge and compliance expertise — ask if they're hitting chargebacks and how they're managing carrier selection for their retail accounts. That question immediately demonstrates relevant expertise.
What's the difference between collect and prepaid freight in CPG?
Collect means the retailer controls transportation — they arrange pickup from the vendor's facility, typically using their own negotiated carrier contracts. The vendor ships FOB origin and doesn't manage the carrier. Brokers don't participate directly in collect moves (unless they're in the retailer's carrier program). Prepaid means the vendor arranges and pays for freight to the retailer's DC, following the retailer's routing guide for carrier selection. This is where CPG brokers operate — as the vendor's logistics partner on prepaid shipments. Most large retailers prefer collect for vendors above a certain volume threshold because it gives them more control over carrier utilization and DC appointment scheduling.
How does the holiday season affect consumer goods freight?
Q4 is the single largest freight period for most CPG categories. Retailers require holiday inventory at their DCs starting in October, which means the freight surge begins in September. Capacity tightens across dry van as the holiday build happens simultaneously across most of the retail supply chain. CPG vendors who don't pre-book capacity get stuck. Brokers who build relationships with CPG shippers in Q2 and Q3 and proactively discuss Q4 capacity needs earn the freight. Brokers who call during the October crunch are competing on the spot market with every other broker who waited too long.