Consolidated Shipping: What Is It, Its Importance, And Benefits

Consolidated shipping is made by consolidating several LTL cargoes from different shippers in to a single full container (multi-stop truckload) delivery. 

Consolidated Shipping: What Is It, Its Importance, And Benefits

Consolidated shipping is made by consolidating several LTL cargoes from different shippers in to a single full container (multi-stop truckload) delivery. 

By saving both time and money, consolidated shipping enables shippers to obtain rates that are close to their preference and contributes to the logistical optimization of the supply chain.

For an individual who only needs a few boxes of cargo or smaller goods wrapped and sent in one container, consolidated transportation is excellent. Shippers frequently combine multiple cargoes that come from different suppliers and locations into a single shipment in order to avoid paying a higher charge.

We aimed to clarify the word and its link to the shipping business in order to assist explain consolidated transportation and why it is so vital. To help with this, we’ve listed a few advantages and potential drawbacks associated with consolidated shipping. Let’s try to understand what is consolidated shipping and why is it important for shippers with small cargo.

Consolidated Shipping: What Is It?

An approach to transportation whereby a representative (such as a shipping company or consolidator) aggregates several shippers’ cargos into a single container sent to a receiving agent in exchange for favorable prices. The destination agent then breaks down the consolidation into its individual component consignments and makes it available to consignees. Shippers can receive better rates through consolidation than they otherwise could. This is also known as groupage.

Let’s try to make it a bit clearer with the help of an example. Suppose there are three shippers A, B, and C. 

They want their cargo to be shipped from Dubai to Pakistan. And their destination port is also the same i.e. Karachi Port. As they approach one of the best shipping agents in Dubai, the agent will offer them an offer that will be economical. 

The shipping agent rather than sending all three cargoes to Karachi from Dubai in three different containers, will book a single container and load all three shipments in the container and dispatch them to the destination port. All the shippers will share the cost of that container which they would have to pay for individually in case of any other shipping method than consolidated shipping. 

There will be a receiving agent who will receive cargo at Karachi Port. After receiving, the agent will break down the cargo and send them separately to the final destinations.

One important thing to know about consolidated shipping is that it works best with small cargoes. 

Why Is Consolidated Shipping Important?

Consolidated shipping can have significant importance and, when done well, can benefit merchants, courier services, and end users alike. 

The following techniques are advantageous to every participant in the order fulfillment process. These points will also show us how important is consolidated shipping for the shippers who have small cargo to ship and don’t want to book a full container for that.

1. Cost-effective Shipping

This is regarded by many shippers as the most significant advantage of consolidation. You will often still be required to pay for the whole space even if you just utilize half or two-thirds of a truck. You can integrate various LTL cargoes that are going in the same general direction into a single full truckload shipping via consolidation, and you’ll only be charged for the amount of space their cargo occupies.

This really helps companies to avoid the high shipping rates and avail a low-cost shipping services as consolidated shipping. 

2. Less Likelihood And Risk Of Damage

The problem of defective freight persists despite all the improvements in freight transport. As freight only needs to travel between the shipper, consolidation center, and receiver/consignee, consolidating shipping employs a system that is not only more cost-effective but also significantly lowers the product’s on-again, off-again handling. The likelihood of damaged items is greatly decreased with fewer touchpoints.

3. A Much Better Quality Control

Consolidation also gives you the opportunity to gain possession of your goods sooner. You would typically have to rely on the supplier to send a substitute if quality control alerts you to an issue with your cargo after it has already been dispatched. This would indicate that you are no longer in control of when the goods will be delivered. Consolidation makes it possible to undertake quality control checks as soon as the product enters the store, which lowers the likelihood that you will lose time and control because of unanticipated issues with your order.

4. Sustainability

Utilizing lesser packaging supplies, such as boxes, foam peanuts, and tape, is possible with consolidation shipment. This lessens waste generation and adverse environmental effects. Additionally, because more goods are shipped in fewer boxes, there is improved cube usage on trucks. As a result, vehicles use less fuel while transporting more goods, lowering carbon emissions.

Challenges Regarding Consolidated Shipping

1. Security Of Carrier

Not all transporters are ready to deliver consolidated cargo due to the additional difficulty of consolidation. Even if you are successful in locating an expert shipper who is ready and capable of handling consolidated cargo, make sure you are familiar with this shipper and that you are being charged fairly. 

When choosing the best cargo shipper in Dubai, working with an online freight service provider can help you receive a fair price and give you access to the carrier network.

2. Planning Takes Much Time

Consolidated shipment needs more time invested in organizing and planning, yet this isn’t always a bad thing. To ensure that their cargo reaches both securely and on time, you will have to be extra diligent and aware of aspects like cost, size, scheduling, and several other specifics.

3. Consolidated Shipping Is Time Consuming

Consolidated shipping, as briefly discussed before, can often (usually) take longer than other FTL delivery options since additional procedures must be taken (consolidation and deconsolidation). Shippers must be aware of the full process and make appropriate plans before organizing consolidated shipping.

Is Consolidated Shipping Worth Using?

Consolidated shipment is an effective and low-cost shipping method.  Consolidated shipments are an economical (cost-effective) and effective means to move freight. It is best to use this kind of technique when moving packaged cargo. Palletized shipping must, among other things, be able to move smoothly across the dock. A distribution center becomes more orderly and efficient when a customer’s dock is cleared.

Conclusion

To ensure proper shipment, shippers must have a thorough understanding of how consolidation operates. Using a reputable consolidator company in Dubai with shown experience is one of the finest practices for consolidated shipments because it gives you the assurance that your shipments will be fully taken care of.