Welcome to my fair evaluation of Freight Consolidation. This article explains how freight consolidation HELPS in your e-commerce business. 

Let’s be honest. I can’t bear the expensive costs of shipping multiple LTL shipments. But I can’t simply suffer from this freight forwarding process. 

Then I researched several companies and tried their services. Finally, I came out with another affordable option for smaller shipments. It is easy and effective, ground tested by me! You get FAST shipping, and CHEAPER costs, with MINIMAL product damage. Sounds interesting right? 

Let’s get into the world of FREIGHT CONSOLIDATION.

What is Freight Consolidation?

First, let’s talk about the freight consolidation PROCESS. 

Your customer ordered your products in small quantities. And now you will ship the products to a few of your customers in the same area. 

This is when the freight consolidation comes in. Your products sent to the exact location are combined on a SINGLE vehicle. They then shipped TOGETHER to their destination. In short, a carpooling concept. 

Your consolidated freight reaches the consolidation center. Now, the shipments are divided into small parts. It is then delivered by a regional carrier to customers’ doorstep. 

Pros and Cons of Freight Consolidation

As a freight forwarding expert, freight consolidation isn’t always on the bright side. Let’s take  a look at some of the pros and cons of freight consolidation that you should know about.

Pros:

1. Lower Shipping Costs

Less Than Container Load (LTL) shipments are charged for the fee of the ENTIRE container size. 

Combining numerous LTL packages into a SINGLE shipment will use fewer trucks. By shipping smarter with this consolidation facility, you REDUCE more costs! 

2. Faster Delivery Times

Shipping becomes more streamlined because freights travel in the SAME schedule and direction. 

Not only does the package arrive faster, but it also arrives without any disruptions. The order is delivered to the receiver IN TIME. You get to perform QUALITY measures before final delivery. 

Cons:

1. Difficult Logistic Scheduling

Logistic scheduling entails NUMhttps://www.youtube.com/watch?v=WFjsgSLQQXQEROUS areas of organization and coordination. You’d have many reschedules, and service calls if you tried to play this setup by ear.

Consider using a predefined order consolidation system to ensure proper delivery.

2. Fulfillment Inaccuracies and Shipping Delays

Any incorrect decisions would result in shipping delays in the loading process. Also, products may be sent to the wrong address if they’re not properly supervised. 

Get an EXPERIENCED provider to help with warehousing and inventory management facilities. 

When To Use Freight Consolidation?

Your shipping is more expensive if your orders are less than the projected amount. Shipping is MOST effective when orders are placed in bulk, right? 

As you know, freight consolidation will help us MINIMIZE shipping fees. So freight consolidation is BEST when shipping multiple orders. 

Let’s say I wanted to transport PALLETIZED freight. Then I use freight consolidation. One of the requirements for shipping a few pallets is that they must travel smoothly across the pier. Cleaning a customer’s dock makes the distribution facility more orderly and productive.

Shipping Options for Freight Consolidation

There are a few shipping choices for freight consolidation you can find. We categorized it into THREE main types: ground, air, and ocean. I’ve shipped thousands of products using these three options. Wanna know what’s the cheapest? Let’s go over each one.

Ground

Shipper combines multiple shipments of smaller loads in less-than-truckload shipments. It is the CHEAPEST cargo consolidation service. But the transportation may be SLOW and prone to DELAYS.

Air

Air freight consolidation offers EFFECTIVE delivery. You ship numerous shipments from customers in the same country. They are combined into a single full container load shipment. It is the most EXPENSIVE choice as it is the FASTEST. 

Ocean

Ocean freight is ideal for shipping BIG items and is less expensive than air freight. For INTERNATIONAL shipping, water is frequently more advantageous than air.

What are the Challenges and Risks of Consolidation?

All good things have a cost, and freight consolidation is NO exception. My team and I have consolidated thousands of clients’ goods for over a decade. And no matter how good we are in this field. Risks and challenges still occur over time. 

First, you may need help finding a carrier. Not all carriers are willing to carry consolidated shipments because of extra complexity. Check if freight consolidation providers CHARGE you correctly.

You need more planning and coordination in consolidated shipments than in FCL shipments. Here, you must have a complete understanding of several issues. 

For instance, pricing techniques, dimensions, production schedules, and other aspects. It ensures that your item arrives SECURELY and ON TIME.

Last but not least, consolidated shipment can be time-consuming. It may take longer than FCL shipping (consolidation and deconsolidation). You must be aware of this as an experienced shipper and PLAN accordingly.

Freight consolidation Vs. Pool distribution

How does Pool Distribution work?

In this consolidation strategy, cargo is MIXED at the shipper’s origin point. 

Compared to LTL, pool distribution results in less product handling and cost savings. However, you’ll need enough volume for the same region to make it worthwhile.

The strategy combines long-haul full-truckload and rail transportation to ship a vendor’s product.

How Does Pool Distribution Differ from Freight Consolidation?

General freight consolidation is to combine several shipments into a truckload. It is utilizing truck space to get a better shipment process. We usually offer consolidation to our clients who love to purchase bulk orders.

Pool distribution distributes orders to a single place for faster final destination transportation. Also, you must fill fewer trucks for pooled loads in pool distribution. 

Suggested reading: Best 10 Alibaba Inspection Service Companies

FAQs about Freight Consolidation

What’s Next

Freight consolidation is one of the EFFECTIVE ways of shipping your products. You can send your products CHEAP and FAST to your customer’s doorstep. 

Consider a shipping partnership to consolidate and ship your products to door safely? Leeline Sourcing has ten years of experience in freight consolidation to boost your business. 

Get in touch with us INSTANTLY to BOOST customer satisfaction!