What Is Freight Consolidation

As a shipper knowing that your buyer is interested in putting in a new order can be some of the best words you can hear. But what if the buyer has only put in an order for half their normal amount? Does all the leftover space go to waste?

Owning a business comes with the knowledge that the higher the volume the lower the rate per unit, so the lack of volume requested from your buyer is not the most cost-effective arrangement. Alongside the increase in frequent orders with less lead time and volume, how do shippers contest this trend while still keeping costs low?

The answer to this is Freight Consolidation

Consolidation has become a standard practice for many shippers and allows opportunities for company-wide collaborations. It is the method of shipping multiple smaller shipments combined from different companies, likely heading to a similar destination, as one united shipment. Once the consolidated shipment has arrived at its destination, it is then deconsolidated - i.e separated into corresponding packages and delivered appropriately. Freight consolidation is a useful tool for shippers, carriers, consumers and related businesses, it allows your company to earn a preferred rate and optimize your supply chain while saving time and reducing the cost of shipment.

There are two types of cargo containers used for the process of consolidation, which help to accommodate varying shipment sizes and what your company needs are, Full Container Load also known as FCL and Less Than Container Load known as LCL. FCL is suitable for bulk items and large volume products, whereas LCL allows your company to manage a smaller and more flexible product inventory.​

See more:

 Why Freight Consolidation Is Cost-Effective & Other Advantages

> Freight Consolidation versus Pool Distribution? Which one can save more cost for your business?

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