GlossaryEN1 min readUpdated: Jul 18, 2026
Capacity Allocation
Capacity allocation refers to the deliberate distribution of limited transport and handling capacity—cargo space, vehicles, terminal slots, freight space on a ship or aircraft—among specific orders, customers, or trade lanes.
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Source: https://en.wikipedia.org/wiki/Capacity_management
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Capacity allocation refers to the deliberate distribution of limited transport and handling capacity—cargo space, vehicles, terminal slots, freight space on a ship or aircraft—among specific orders, customers, or trade lanes. In dispatching it determines which shipment is granted scarce cargo space, especially during peak periods or a tight market. Shipping lines and airlines often allocate fixed quotas to freight forwarders, who in turn distribute them among their shippers. The basis is demand forecasts, contractual commitments, contribution margins, and priorities; modern transport management systems automate allocation according to stored rules. Good capacity allocation increases utilisation, avoids empty runs, and is closely interlinked with dynamic pricing: scarce capacity leads to higher rates. For shippers, guaranteed capacity during bottleneck periods is often more important than price alone. Not to be confused with slot management, which controls arrival and handling at the terminal, whereas capacity allocation governs the distribution of the transport volume itself.
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