Definition of Freight Consolidation & Benefits in 100 Words
Definition of Freight Consolidation
Freight consolidation is a logistics strategy where a shipper combines multiple shipments within a particular geographic region into a single shipment container that is then line hauled to a destination point where the smaller shipments that were part of the consolidation are broken down and shipped to their final destination or the single shipment is delivered directly through to final destination.
Quick Video Demonstrating Consolidation & Pool Points
Benefits of Freight Consolidation
Freight Cost Savings
By consolidated smaller shipments into a larger single shipment pushes up to a less costly freight mode.
Examples of Freight Consolidation Savings:
- Consolidating multiple small parcel shipments into a single LTL shipment.
- Consolidating multiple LTL shipments into a single truckload or intermodal shipment.
Using the LTL cost savings example, consolidating LTL shipments into a single truckload will allow the shipment to by-pass the LTL hub-and-spoke network in favor of a single linehaul to destination.
Using the LTL cost savings example again, the transit time is improved with consolidated LTL shipments because the shipments travel direct to destination versus moving through a typical LTL network.
Improved Visibility and Service
Visibility improves, the information is more reliable and the shipments will deliver together.
Less Dock Congestion
To illustrate this point, let’s go back to the LTL example. Instead of multiple LTL motor carriers arriving at the destination dock, a shipper will receive one truckload shipment.
Consolidation service solutions are available for parcel, LTL, air and ocean freight shipments.
Additional articles on freight consolidation:
- Top 10 Benefits of LTL Freight Consolidation and How-to Implement
- LTL Pooling & Consolidation
- 3 Market Challenges Overcome Through Freight Consolidation Services
- Best LTL Companies (And How to Choose)
- Top 3 Things Shippers Ask About Global Freight Consolidation