What is Freight Consolidation?

  • 2 min read

Freight consolidation is a shipping strategy many businesses employ to lower their freight costs and boost security in the supply chain. It involves combining multiple shipments into a single load transported by a carrier to a destination region. Upon arrival to the destination region, the load then gets deconsolidated (broken down into smaller parts which are then delivered by a regional carrier to their final destination). Freight consolidation can also work in the other way, so smaller shipments can be merged together and then delivered to their destination together.

Freight consolidation is ideal for businesses that only move a few pallets of a product at a time and businesses that ship smaller amounts at a higher frequency. It can provide a number of benefits for businesses, some of these include:

Reduced Shipping Costs

Through freight consolidation, LCL (less-than-container loads) and LTL (less-than-truck loads) can be merged into a single load and shipped together. This can help businesses avoid unnecessary expenses associated with transporting partially-filled containers and trucks.

More Security

Freight consolidation can also help boost security throughout the supply chain. As consolidated freight requires less handling, the chances of cargo being damaged or going missing is greatly reduced.

Improved Relationships

Consolidating freight can also boost professional relationships between shippers and carriers. With reduced overhead costs and increased profits for all parties involved, freight consolidation can help establish long-term shipping partnerships.

Freight consolidation can also improve relationships with customers. As consolidating your shipments makes your shipping process faster and more efficient, your customers will likely get their cargo delivered quicker, making them more likely to shop with you again.

Although freight consolidation presents many benefits, it can be challenging to pull off. Consolidated shipping requires considerably more planning and knowledge around pricing, dimensions, timing, and other specifics. It can also be difficult to find carriers who are willing to consolidate your shipments.

Because of this, we recommend that any businesses wanting to consolidate their shipments get in touch with ISS. Our experienced team will plan and organise your shipments, recommending freight consolidation when suitable.

For more information, contact us here.