What is Cargo Consolidation and Its Importance?

How do you ship your small packages?

Do you know a shipping method where you can save money by joining other shipments from various shippers?

The shipping cost is expensive. Many people or business owners cannot afford the high fees for shipping. We have a good solution for you if you are looking for options to cut costs on your shipping expense.

Have you heard about consolidating cargo? We will give you all the basic and essential details about how you can save on shipping. Read on if you are importing products from China and want a low-cost shipment fee.

 

1. What Is Cargo Consolidation and its importance?

Cargo consolidation is a process where you combine several individual shipments into one big load. These shipments will be delivered to the same destination.

Generally, it’s a package shipment where many items are picked up in a distribution or consolidation warehouse. They are kept in the exact vehicle until they arrive at their destination. In this shipping process, you share a truckload with other shippers. This way, you don’t have to pay the entire cost.

When dividing shipping costs, there is a principle. The lower the cost per unit, the larger the load volume. Because of this, shippers can combine their loads and split the cost of transportation.

 

 

Here are reasons why it is important:

 

1) Lower shipping rates

You only pay the weight of the package and the distance from where it will be delivered. You do not shoulder all the costs because other shippers are paying for the rest of the shipment included in the load.

 

2) Quicker transit time

The lower price and direct route can shorten transit time. It helps you to meet order delivery dates and decrease transportation costs. When you pay for a full truckload, it is faster, but the price is so high.

Cargo consolidation services help in lowering the cost of delivery. At the same time, it makes you find a faster option for getting the goods to your location.

 

3) Your cargos are safe.

Your consolidated cargo shipper will be responsible for making your goods delivered with less risk of damage. It is due to limited handling of goods. They combine them with other goods with utmost care.

You don’t have to fret about your shipment because they know the process. You can rest assured your goods will reach you safely.

The reason why some packages arrived to you with damage is due to several touchpoints of good. But the handling is minimized when your shipment is combined with other shipments that go to the same location.

 

2. What is freight consolidation in logistics?

 

Freight consolidation is known as cargo consolidation, combining multiple packages or shipments as one large shipment. This way of shipping is done so shippers can save on shipping costs. Instead of paying for a whole container or truckload, you only pay for a certain amount.

Think about carpooling or using a shuttle service. You go with other people in car service and have a drop-off. It is convenient if you prefer not to bring your car or want to save. It is more suitable for many reasons.

Now in logistics, it is sharing on paying the shipping expense. You can ship your products without spending the entire container cost. It is helpful for small business owners who import products. You pay a portion of the container shipping cost based on your shipment’s weight. That’s cost-effective.

There are two words you need to use about container shipping. They are LCL and FCL. Let’s define the two below.

Less-than-Container Load (LCL)

LCL is an acronym for Less-than-Container Load. It is a type of shipping used for smaller shipments that do not fill an entire container. LCL shipments are typically less expensive than full container load (FCL) shipments. But take longer to ship since they must be consolidated with other LCL shipments before being loaded onto a container.

Full-Container-Load (FCL)

It refers to a sufficient shipment to fill a shipping container or truck. As a result, FCL shipments are paid at a flat rate. They are less expensive than LCL shipments.

These combined cargoes will be divided, sorted, and merged into full truckloads (FTL). Then, it will be assigned for the delivery to the fulfillment center when it reaches the distribution center.

This method is beneficial. Combining the packages will make up the volume of the whole shipment. It will lessen overall shipping costs. The shipping costs per unit reduce as the shipping volume increases.

 

3. How Can Consolidate Your Cargo Save You Money?

 

Cargo consolidators ensure that their clients save money in every shipping transaction. That keeps them from coming back and choosing them over other shipping methods when importing.

It can help you save money when using LCL because you share expenses with other shippers. You do not need to pay for the whole container load. You will pay a portion of the cost of the container or truckload.

Because of a faster transit time, you can supply your inventory without long delays. Without delays, you will not compromise your business. You can serve your clients when you’re selling products. If you are manufacturing goods, your product components are supplied on time.

When you save time, you save money. Your business can expand and grow according to your timeline and goals.

Some companies are having problems with the supply of their products because their suppliers cannot ship them without the required MOQ. You can benefit from cargo consolidation if you are a startup or a small business.

When you do not know how to arrange to ship your goods, you can spend more money than expected. Since the start of the pandemic, shipping costs have been too high. You might lose profit if you pay the high fee of shipping rates.

 

With this shipping method, you can be confident that your goods are handled and shipped correctly. You will have updates on your shipment by using the consolidated cargo tracking system.

Most cargo consolidators’ agencies will let you see the complete information about your shipment’s whereabouts. They use the cargo consolidators tracking app.

Having said this, you will save money because of security, quicker and correct routes, preventing damage to goods, and more. It is an excellent option if you are a regular shipper who needs to move your shipment from time to time in the same direction as other shippers.

 

4. What are the benefits of freight consolidation?

 

Do you know what you can benefit from cargo consolidation? When you search for a company like Cargo Consolidators Agency Limited (Cargo Consolidators Trinidad and Tobago), will it give you complete logistic and freight services?

Carga Consolidated Significator, or LTL, is a type of cargo that combines shipments from several companies. They share space and transportation costs based on their merchandise’s weight. Here are the significant benefits you can benefit from getting this service:

 

1) Reduced Shipping Costs Advantage

Many shippers would agree that this is the most significant advantage of consolidation. Shipping by air using a courier service can be more expensive. Especially during the peak seasons when companies rush to get a timely shipping schedule.

Using FCL is good but not always practical. You will often still be asked to pay for the entire space, even if you just utilize two-thirds of a trailer.

You can combine multiple LTL shipments in the same place into a single complete truckload shipment through international cargo consolidators. You’ll only pay for the space your freight occupies.

 

2) Avoid damage risks of shipment.

Though there are improvements in freight shipping, damaged shipment is still a lingering issue. It is due to several touchpoints of the goods when using a different shipping method.

Consolidated cargo shipment uses a method that not only is more cost-efficient but also reduces touchpoints. What are these touchpoints? They are the on-again or off-again handling of the product.

With LCL, the freight must only travel between the carrier, consolidation warehouse, and consignee. The risk of damaged goods is significantly lowered or eliminated with fewer processes.

 

3) Higher Business Stability

Your business can sometimes be unpredictable. There are times when the order demand is too high. But there are occasions when you don’t need to stock that much.

You can incorporate your clients’ ordering habits into your shipping or order plan after you become familiar with them. Doing this allows you to keep inventory close to hand for your clients and avoid rushing to complete orders.

It will be easier for you to benefit from the cost reductions that come with freight consolidation if you have a regular shipment schedule since you can fill the necessary space.

What do you benefit from this?

Your chances of receiving a shipment late, missing a product, or being delivered to the incorrect retailer will decline as your supply chain becomes more consistent. Your entire shipping procedure will be simplified, keeping your consumers happy.

 

4) Smarter Shipping While Building Rapport

In business, it is essential to build rapport and relations. You connect with your suppliers, clients or customers, and package carriers. You can grow your brand through wise choices like choosing a cargo consolidation corp!

How do you do it? You can first build connections with other companies that depend on LTL shipment.

You can work with a company with the exact needs as yours when shipping their goods. This way, you can share the advantages of consolidated cargo, combining your goods into one big shipment.

Collaboration with other companies will bring good benefits to your business. An effective shipping system will remove workloads on your part and can improve the way you do service with your customers. Additionally, you will value the savings that it offers.

 

5) Knowing Credible Carriers

The trusted carriers will help you make it possible. It would help if you had a business you could trust to manage your orders and guarantee that goods arrive when they should. As one of our Portuguese clients says, a transport cargo consolidates! We will take care of your consolidated cargo.

Having good communication with your carriers can bring good partnerships in the long run. A lack of collaboration will not give you confidence that everything will go according to plan.

 

 

5. When do you use cargo consolidation services?

 

1) Do you ship a few products from time to time?

If YES, consolidation is a good choice. Shippers with just a few product pallets or smaller shipments prefer to ship packages and transport them in one container.

 

You can ship them together since they come from various regions or providers. When a shipper decides to combine shipments, the goods are delivered to a consolidation warehouse.

It is a cost-effective option because you can save from the high shipping costs. You share a truckload with other shippers and pay only based on the weight and location of your package.

 

2)  Do you order from multiple suppliers?

If your answer is YES, you can combine all your purchases and send them as one shipment.

 

When your orders are not too big, or you only need to purchase within the minimum quantity, you can consolidate all your orders from different suppliers. For example, if you order from several suppliers in China, you can hire JUSTCHINAIT to help you ship them.

 

A consolidated cargo in China or a consolidated cargo shipper will take care of your packages from multiple suppliers in China. You can now buy from various suppliers. The suppliers can send your orders to a warehouse and stay there until everything is ready to be shipped.

 

3) Do you want to implement quality control?

If your answer is YES, you can combine all your purchases and send them as one shipment.

When your orders are not too big, or you only need to purchase within the minimum quantity, you can consolidate all your orders from different suppliers. For example, if you order from several suppliers in China, you can hire JUSTCHINAIT to help you ship them.

A consolidated cargo in China or a consolidated cargo shipper will take care of your packages from multiple suppliers in China. You can now buy from various suppliers. The suppliers can send your orders to a warehouse and stay there until everything is ready to be shipped.

 

4) Do you want to follow a scheduled time of delivery?

If your answer is YES, then you need this. There are factors that a company considers when importing products:

• Transportation
• Schedule
• Inventory

When you want your shipping schedule to be flexible, you can store them in a consolidation warehouse. You can choose the dates from the cargo shipper when ready to ship. Your company will get a lot of benefits such as:

• Make room for more inventory
• Prevent your domestic warehouse from having dead stock
• Avoid the problem with freight distribution

Having a small space for your inventory is a problem for many companies. That’s why many are using this shipping option so they can resolve storage problems. They can prepare ahead before the new stocks come.

 

 

6. What are the shipping options for consolidated shipping?

 

Some people only think that consolidating is just for sea shipping. However, there are three shipping options you can choose from. Let us enumerate them below:

 

1) Ocean Shipping

You can use ocean shipping when you want your shipment to be included in one large shipment using a container via sea transport.

LCL cargo is divided up into different-sized containers. Large products should be transported by ocean freight, which is more cost-effective than air freight. It frequently makes shipping internationally by sea more advantageous than by air.

Try carga consolidada maritima or sea cargo shipping. You can use LDL for the following conditions:

• The shipment’s gross weight exceeds 150 kilograms.
• The shipment’s volume ranges from 1 to 18 CBM.
• The transportation time can be around 5 to 7 weeks, depending on the route.
• The shipping route accessible is either direct or does not require any substantial transfers.
• If your goods are on a list of restricted air freight items.

 

2) Air Shipping

Due to its extreme speed and ability to get goods to their destination in the shortest amount of time, air freight is the most expensive choice.

Some cargo transported by air freight are:

• Perishable agricultural and fisheries products
• Pharmaceuticals
• Clothes,
• Factory samples
• Electronics
• Documents

You can use air shipping for goods that will expire quickly. It also works for urgent spare products or components. You can ship chemical products through air cargo consolidation.

Due to processes, it typically takes 8 to 15 days to transport a shipment from China to the US. It also depends on the transportation route from China to the United States.

In air cargo consolidation, meaning air freight shipping, the Master Bill of Lading between the carrier and your freight forwarder regulates all your cargo carried on the plane. However, each shipment has its own corresponding House Bill of Lading, so it will be organized.

 

3) Ground Shipping

Ground shipping consolidated cargo is an economical (cost-effective) and effective means to move freight. It is best to use this kind of technique when carrying palletized cargo.

 

Palletized shipping can move smoothly across the dock. A distribution center becomes more orderly and efficient when it empties a customer’s dock.

 

Shipments with less than a full truckload are combined with other loads to make them larger. Ground transportation is the least priced, but it can also be slow and subject to delays.

 

 

7. FAQS

 

Now that you know the importance of cargo consolidation, you should try this method as part of your shipping options. Before we conclude our topic, we will add these FAQS to your knowledge about freight consolidation.

 

1) What is a consolidated cargo shipper?

A cargo consolidator is an agent or a company that ships your packages by combining all small shipments into one large load. These packages are sent to the exact location. Cargo Consolidators Agency Ltd (Cargo Consolidators Point Lisas) is an example of a consolidated cargo shipper.

When sending multiple small shipments called LTL, the condition of cargo consolidation is to send it as one full container or FCL. These various shippers will pay for their shipments depending on the space they occupy in the container.

In Hongkong, Cargo Consolidation Complex is a famous consolidation center located on Kwai Hong street that caters to local and international freight services.

 

2)What does a consolidated freight cost?

It refers to the price or fee you will pay when you do LTL shipping. The rates are based on certain factors like the type of shipment or freight class, the space it can occupy, and the distance it will be shipped. If your shipment is less than 15 thousand pounds, you will save by doing this shipping method.

 

3) Is there any disadvantage in cargo consolidation?

There are challenges you may encounter. One is finding a carrier that can cater to all your requests. Not all carriers are willing to transport them because freight consolidation can seem complicated.

Some carriers do not charge fairly. Make sure you check their quotes and are well informed about their pricing. If you can find a carrier willing to transport your combined shipments, you need to compare it with others. This way, you will know if you can save money or spend more.

Another challenge is your knowledge of the process. You must know the proper timing on when to ship out. It needs planning. If you think you need to expedite the shipping time, you must talk to your cargo consolidator to see if they can make it on time.

You also must consider some downsides of LTL. Remember that you cannot make a rush shipment during peak seasons or holidays. If you want to make your shipments come on time, you have to get an advance schedule. If the weather condition is not good, expect delays.

 

 

8. Conclusion

Not all companies would choose to combine their shipment with others. But for a retailer or a small company with small loads, cutting shipping costs is essential. This method is practical when you want to manage your shipping system.

Do you want to have a safe shipment of your packages? Are you looking for a carrier that can ship your products on time with reduced risks? If you answer YES, it is time for you to try cargo consolidation shipping.

The consolidated cargo definition is easy to remember. When you combine your shipment with other shippers, you will save on shipping costs. You will also learn to become efficient and intelligent when managing your stocks and inventories.

Although it may not be the ideal option for everyone, it provides significant advantages. You can address not only the costs, but you can also improve your shipping method and flexibility.

If you are looking for a company that will assist you on LCL, we are here to help. With thousands of clients served throughout the years, we will make sure to help you with any of your shipment consolidation needs.