into one complete container (multi-stop truckload) shipment. Freight consolidation allows shippers to receive preferential rates and helps optimize supply chain logistics by saving time and reducing costs.

Freight consolidation is ideal for those who may only have a few pallets of freight or smaller shipments that need to be packed and shipped in one container. Often, shipments will arrive from different locations and suppliers, and to avoid paying higher rates, shippers will consolidate them into a single shipment. 

To help break down consolidated shipments and the reasons they are so important, we wanted to clarify the term and how it relates to the freight industry. To do so, we have outlined some of the benefits and potential challenges.

Benefits of freight consolidation.

Cost-effectiveness: Many shippers see this as the most important benefit of freight consolidation. If you only use half or two-thirds of a trailer, you typically still have to pay for the entire space. Consolidation allows you to combine multiple LTL shipments traveling in the same area into one complete truckload while only paying for the space their cargo occupies.

Reduce the risk of damage: Even with all the progress made in freight, damaged freight is still a lingering problem. The method used for freight consolidation is not only more cost effective, but it also greatly reduces repeated handling of the product, as the shipment only needs to be transported between the shipper, consolidation center and the consignee/receiver. The fewer touch points, the lower the risk of damage to the shipment.

Improved quality control: Another benefit of freight consolidation is that it allows you to control your shipments faster. If for some reason quality control alerts you that your shipment is faulty and has been shipped, you usually have to wait for the supplier to send a replacement, which means the time to deliver the product is now out of your control. Consolidation of shipments allows you to implement quality control measures as soon as the product arrives at your warehouse, reducing the opportunity to waste time and control due to unforeseen problems with your order.

Potential consolidation challenges.

Securing carriers: Due to the increased complexity of consolidation, not all carriers are willing to transport consolidated shipments. Even if you are successful in finding a carrier that is willing and able to move consolidated shipments, make sure you fully understand the carrier and charge you correctly. Working with an online consolidated freight service provider can help ensure that you get a fair price when identifying the right carrier and also give you access to a network of carriers.

Spend more time planning: Consolidation requires more time to organize and plan. You will need to take extra care and understand factors such as price, size, time and many other details to ensure that their deliveries arrive safely and on time.

Time consumption: As mentioned earlier, freight consolidation sometimes (usually) takes more time than other FTL shipping methods because of the extra steps required in the process (consolidation and splitting). Before planning a freight consolidation, the shipper must understand the entire process and plan accordingly.

Is freight consolidation a good option for me?

Consolidation of ground freight is a cost effective way to move freight. This method is ideal for people who transport palletized cargo. One of the requirements for palletizing is that it must be able to move seamlessly around the dock. Clearing a customer's dock can create a more organized and efficient distribution center.

Final thoughts.

It is critical that shippers fully understand how consolidating shipments works to ensure proper delivery. One of the best practices for freight consolidation is to use a reliable consolidator with proven experience so you can be sure your shipments are handled properly.

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