Freight consolidation is a service offered by some shipping companies to lower the total shipping cost and to increase shipping security. It is also known as consolidation service, assembly service, and cargo consolidation.
Freight consolidation is when several small shipments, all being forwarded to the same location, are bundled and shipped together. This service can be beneficial both to the customer and to the freight forwarder.
There are several cost advantages to freight consolidation, both for the customer and the shipping company. First, consolidating small shipments lowers overall fuel costs for the freight forwarder. Second, forwarding small shipments together lowers total shipping costs for the retailer.
Freight consolidation also offers a safety advantage over forwarding small shipments separately. The more separate shipments there are, the higher the risk of something interrupting delivery of at least one shipment. Consolidation lowers this risk.