Freight Consolidation Everything You Need to Know

1. Freight Consolidation: Everything You Need to Know What is Consolidated Shipping? Is it A Good Option for You? Freight consolidation is a process of consolidating or grouping several small cargos from multiple shippers on a single truck/container and shipping them to a common destination. Since the shipper shares the cost of shipping with other shippers whose cargo is on the same truck, it is one of the most economic ways of shipping the cargo. Besides this, another reason why it is cost-effective is because the shipper may get discounted rates when shipping in bulk. And as the cargo only has to travel between the shipper, consolidation centre and receiver, it is a safer mode of shipment where chances of damage and theft are minimal. But the downside of this method is that not all kinds of freights can be consolidated. For instance, flammable materials, temperature sensitive goods, fragile materials, etc cannot be send via consolidation. Now that you know what is consolidated shipping and what are its benefits, let’s know the consolidation service options. Types of Consolidated Shipping Owing to the number of benefits it offers, especially to small businesses, consolidated shipping is a preferred mode of shipping and so is done via all three ways, namely air, sea, ground: •Air Freight Consolidation: Since air transit can cover the longest distance in the shortest possible time, air freight consolidation is considered the fastest shipping method for consolidated shipments. Most of the air shippers also ensure theft and damage protection reducing the degree of risk in transit. It is an excellent option for shippers moving

2. high-value or perishable goods. However, the high cost of air freight shipping is the one reason why shippers don’t usually choose this method. Also, there are only certain goods that can be shipped by air. Shippers first have to make sure that their parcels do not contain any prohibited substances as mentioned by the airline. •Ground Freight Consolidation: Ground freight consolidation is usually done LTL (Less-Than-Truckload) shipping. The limitations of types of goods in ground consolidation are much lower than air as many hazardous materials can be moved with few restrictions. While there is no doubt that ground transportation is much slower than air and only a limited number and weight of goods can be shipped by road, it is a good option if the destination is close by. Furthermore, ground freight consolidation can sometimes be challenging due to factors like the traffic, weather and political conditions, which is why you should opt for the services of experienced freight forwarder who has handled difficult situations and knows how to execute the shipping process with proper planning. •Ocean Freight Consolidation: When individual consignments from multiple shippers are consolidated into a single container and transported via sea, it is called LCL or the less-than-container load. It is economical for those who have only a few pallets and not enough cargo for a full ocean freight container. Cargo is consolidated in a 20ft or a 40ft container, and its chargeable volume depends on a number of factors, such as the dimensions of the pallet, the weight of the cargo and whether or not the cargo is stackable. And since there are also destination charges, origin charges and ocean freight charges involved, this means of freight shipment is economical only when the cargo is up to a certain volume. Challenges of Consolidated Shipping: So far we have read about the benefits of consolidated shipping, but this mode of shipping also comes with a few challenges, such as: •Finding Consolidation Carriers: Since consolidated shipping is a challenging feat to accomplish, not many freight forwarders and carriers offer consolidation services. It might take a while before you can find a dependable freight forwarder who can manage the consolidated shipment and transport it as required. •Time Consumption: Though it is economical as compared to FTL and FCL, it is consumes more time because the shipment needs to be consolidated and deconsolidated. •Organizing and Planning: Since consolidated shipping means parcels from different shippers transported in one container, there is always a need for organization and planning to be able to execute the processes perfectly. Bottom Line

3. Consolidated shipping is an excellent method of transporting goods from one place to another but it requires meticulous planning and execution. What you need is a consolidation carrier who understands the system and mechanism of consolidated shipping. If you can find a reliable consolidator then this mode of transportation will help you offer low cost and most efficient shipping solution to customers.