What is consolidated cargo transport?

Cargo Consolidation in Maritime Transport | Types, Benefits, and Services

Cargo consolidation is common in logistics. In this post, we analyze it from the following key points.

Consolidated freight shipping refers to the process of combining small shipments into a single container or truckload for transport. Similar to carpooling, consolidated shipping shares transportation resources and divides shipping costs. It is also known as freight consolidation, assembly service, freight consolidation, consolidation services, and buyer consolidation.

Consolidated shipments can be sent within or between countries or regions. International freight consolidation is more complex than domestic. Here's how it works:

For example, we have five clients in New York with a small volume of cargo to ship simultaneously. We can collect their cargo at our warehouse, contact our carriers to combine it into a single container, and ship it to the Port of New York. Upon arrival, each client's cargo is sorted and shipped to its destination.


How are shipments consolidated? (2 common types)

Consolidated shipping can be applied to air, sea, and land transportation . There are two main types of cargo consolidation: LCL and LTL.

LCL Consolidation (Air/Sea Freight)

Less-than-truckload (LCL) ocean freight is the primary method of ocean or air freight consolidation . If you choose ocean freight, LCL involves sharing a container with others for ocean freight shipments. If you choose air freight, your goods share a pallet with others, secured with netting or stretch film.

LTL Consolidation (Land Transportation)

Less-than-truckload (LTL) means that several small shipments are combined into one full truckload of goods and shipped together. It is the primary method of ground consolidation.

For example, if you have a small amount of cargo and want to ship it by truck from China to Europe, you can choose this option. Alternatively, if the entire truckload doesn't fit when you arrive at the destination port, you can combine it with other people's cargo and ship them together.


What are the benefits of load consolidation?

You can share freight costs with others through LCL or LTL. This way, you only pay for the space occupied, which saves you money with cargo consolidation. Let's say you need to ship 10 m3 of goods from ports in China to ports in the UK:

  • The cost of LCL transport is approximately £138/m3. The total sea freight is £1,380 (£138/m3*10 m3).
  • If you decide to rent a full 20 GP (28 CBM) container, the cost is approximately £3800.

As you can see, cargo consolidation can save a lot of freight costs and make the most of container space.

However, this doesn't mean that having less than one container or truck always makes it more economical to opt for cargo consolidation. In our experience, ocean freight volumes between 1 and 13 cubic meters are suitable for LCL, and FCL freight volumes over 17 cubic meters are more economical than LCL freight.

If your cargo volume is between 13 and 17 cubic meters, you should compare prices to choose the most economical option. The carrier must help you consolidate, unpack, and sort the cargo, which is not economical.

In international shipping, consolidation is one of the most widely used transportation methods, as many importers bring in small volumes of goods from China, always less than the volume of a container.

If you want to receive your goods quickly, you can opt for air freight consolidation. If you're not short on time, you can opt for sea freight consolidation. The cost will be lower than the previous option.

Are there any challenges to cargo consolidation?

While consolidating goods can save costs, it also has several disadvantages.

More time to arrange shipping

If you choose cargo consolidation, you'll have to wait for other shipments at the same destination port. This wait time is uncertain and easily delayed.

Lower efficiency in customs clearance

A container transports the goods of several companies. If the goods from one of them are special and subject to customs inspection, customs clearance of the entire container will take longer.

Increased risks of product damage and loss

Cargo consolidation also presents greater difficulties during unloading. Since a container contains goods from different importers, they must be separated and sorted after shipment to their destination. During this process, it is easy to accidentally lose cargo.

In practice, many importers prefer cargo consolidation when their shipments aren't large and they don't want to pay expensive express shipping fees. The most important thing is to choose a reliable and competent carrier to do this for you, so your cargo can be shipped more safely.

Three more questions and answers.

What is a consolidation rate in freight transport?

Your carrier or logistics service provider charges a consolidation fee for combining several small shipments into one larger one. This fee covers the costs of sorting, packaging, and coordinating the shipments.

What is air cargo consolidation?

Air freight consolidation involves carriers collecting your small packages, combining them with other carriers' cargo, and loading them onto the same flight for transport. This method saves expensive air freight costs. Once the large, combined shipment reaches its destination, it is separated into individual shipments and delivered to its final destination.

What are the types of transportation consolidation?

For domestic transportation, it's common to see truck consolidation, where multiple small shipments are combined to fill a full truckload.

For international logistics, the most common types include air, ocean, and rail freight consolidation, often combined with trucking or courier services for last-mile delivery. This is known as "intermodal transportation."

Hisuper's consolidated shipping services allow you to save costs.

Whether you buy from us or not, you can let us handle the shipping. If your shipment is from several factories located in different locations, we can bring your products together in our warehouse and coordinate the joint shipment.

We work with numerous experienced carriers, offering competitive prices and the best shipping solutions. If you choose consolidated shipping , we can connect with multiple carriers to help you complete the consolidation process and ship your goods on time, minimizing delays. We deliver to your home, from pickup, shipping, and customs clearance to delivery, so you don't have to worry about tracking or troubleshooting logistics issues.

In addition, we can help you with one-by-one quality control to ensure product quality before shipping out of China if you need.

Monthly Product Report: We collect the most popular items from over 1,000 customer orders to help you find your winning product.

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