An aggregate shipment, also commonly known as a consolidated shipment, consists of multiple smaller shipments from different sellers combined into one larger shipment.
This logistics strategy is used to achieve better freight rates. Instead of multiple shippers each paying for underutilized space, a forwarder groups their cargo to create a larger booking with an ocean or air carrier.
In standard shipping, this often means combining multiple Less than Container Load (LCL) shipments into one Full Container Load (FCL). The forwarder issues a House Bill of Lading to each shipper and receives a Master Bill of Lading from the carrier for the entire consolidated container.
How it Works in Practice
- Collection: Individual shippers deliver their cargo to the consolidator’s warehouse or a Container Freight Station (CFS).
- Consolidation: The forwarder groups shipments that are bound for the same general destination and loads them into one container.
- Documentation: The consolidator, acting as the shipper, books the entire container with an ocean or air carrier under one primary transport document, the Master Bill of Lading or Master Air Waybill.
- House Bills: The consolidator then issues a separate House Bill of Lading or House Air Waybill to each of the original, individual shippers. This document is their contract of carriage with the consolidator.
- De-consolidation: Upon arrival, an agent of the consolidator receives the full container, “unstuffs” it (de-consolidates the cargo), and arranges for eachl shipment to be delivered to its respective consignee.
The primary benefit of an aggregate shipment is cost-efficiency. It allows small-volume shippers to share the expense of a full container, granting them access to much lower freight rates than they could achieve shipping their goods individually.