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Home Glossary Consolidation

Consolidation

Consolidation is the process of combining multiple smaller shipments from different shippers into one larger shipment to reduce transportation costs. Freight forwarders or consolidators group cargo destined for similar locations into shared containers or trailers. This practice is common in less-than-container-load (LCL) or less-than-truckload (LTL) shipping. Consolidation maximizes space utilization and lowers per-unit freight rates. Once the shipment reaches destination, it is deconsolidated and distributed to individual consignees.

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