GlossaryEN1 min readUpdated: Jul 18, 2026
Capacity Allocation
Capacity allocation – also called allotment – is the assignment of a carrier's available loading space to individual orders, customers or freight forwarders.
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Source: https://ship4wd.com/logistics-shipping/freight-allocation
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Capacity allocation – also called allotment – is the assignment of a carrier's available loading space to individual orders, customers or freight forwarders. In sea and air freight, forwarders secure a fixed share of cargo space per departure through allotments, often contracted for a season; non-allocated capacity is sold at short notice at spot prices. The aim of allocation is to distribute scarce loading space across orders in a revenue-optimal way while honouring commitments to regular customers. It is tightly linked to dispatching and transport planning, which assign the actual shipments to the allotted slots. Good allocation is the precondition for high capacity utilisation and, together with dynamic pricing, forms the core of modern revenue management in transport. Not to be confused with capacity utilisation: allocation is the planned assignment in advance, whereas utilisation is the measured result of actual use.
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