Freight consolidation is a process in which several small shipments that are all being sent to the same location will be bundled, or consolidated on a single truck, and then shipped together to their destination.
Reduced Shipping Costs. The most obvious benefit to consolidating freight is lower costs. When a shipment only fills up part of a truck, you're still covering the fuel surcharge, the driver's wage, the scheduling, and other costs for the full capacity. However, by increasing the volume, you decrease the cost per unit.
This process of freight consolidation is used to maximize efficiency and cost savings for shippers. Consolidated shipping is also known as cargo consolidation, order consolidation, or consolidated freight. The process allows shippers to streamline their delivery process, reduce costs, and increase delivery speed.
