What is Consolidated Freight in Shipping?

In consolidated freight, several small shipments (in cargo volume) from a location, belonging to different sellers, are combined to form a full container load (FCL) and shipped to a destination location.

Upon arrival at the destination, this cargo is segregated and redistributed to the respective customers.

The main benefits of freight consolidation are:

Saving in freight cost

Less than Container Load (LCL) cargo is packed with other similar cargo and ships as FCL to a destination. Several shippers thus share space inside a container and pay only for the volume that they take up, thus saving on cost.

Fewer damages to goods

Goods in a container that is partly filled (LCL) are more susceptible to damages than an FCL. This is because the LCL cargo may move around the container if not packed compactly with enough packing. Since a full container load is usually the maximum capacity of a container, the goods are less likely to move around the container.

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Disclaimer: The authors’ views expressed in this article do not necessarily reflect the views of Marine Insight. Data and charts, if used, in the article have been sourced from available information and have not been authenticated by any statutory authority. The author and Marine Insight do not claim it to be accurate nor accept any responsibility for the same. The views constitute only the opinions and do not constitute any guidelines or recommendations on any course of action to be followed by the reader.

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