Freight Consolidation Explained

downloadFreight consolidation is a cargo consolidation service that is provided mostly by large national and multinational cargo companies. In this service, a large number of goods is shipped in smaller shipments that are further shipped after being assembled to get better freight rates and safety of the goods. It is also known as assembly service.

Strengthening the freight can help your company save money as you are shipping goods that are less than LTL shipments. If you stabilize your freight, you are not only more efficient but also saving money. If you are shipping via LCL shipments, your transportation costs can go up the roof. Not only do they cost more but they can also have extra fees and additional charges.

You can significantly reduce this shipping cost by mixing your freight with freight from other companies that are on the same cargo ship/ truck/ plane. You can also hire a third party freight service provider to lower the cost of delivery.

Securing the freight can help you save your money by letting you pay for only the space that you need while sparing the rest of the space for other goods. This way you only pay for the space your goods need in a truck or plane or ship instead of hiring the entire thing for it. This way you share the space with other goods that are being sent to the same region as your goods. This helps everyone who uses this service to lower their expenses.

The freight consolidation is also beneficial while receiving goods. For example, you can receive multiple shipments from different locations that can be consolidated into one single shipment to be forwarded to another location. It can have the following advantages for companies:

Low rates

Multiple international and domestic shipping options

Reduction in delivery expenses

Reduction in freight expenses

Reduction in transportation time

Fewer chances of damage

Consolidation for multiple shipments

The most important factor in a freight consolidation program is communication. You need to make sure you know about the schedule, time changes, etc. that might occur. This is the reason why you need to be in constant contact with the freight loader or the 3rd party that you are using. You need to provide and receive accurate information to make the process of shipping your goods easy.

Many freight providers also offer warehouses that are flexible with storage and help keep your shipments under a safe environment during shipment. You can have up to two weeks of storage space at any given warehouse but after that, you have to pay additional charges to keep your goods there. These charges are typically not that much, and you can pay them without going overboard with your budget.

Most businesses worldwide, whether they are startups or large corporations, depend heavily on services that can help in securing the load for the shipment of their goods. They rely on such services to rationalize their logistics, minimize their costs and time and maximize efficiency. Such good reinforcing services are not only available domestically, but it can also be used for international air freight. You can save thousands in costs and expenses just by doing minor changes in your shipping habits.