Transport/Logistics

Freight consolidation

Freight consolidation is a logistics strategy where smaller shipments from multiple suppliers or shippers are combined into one larger shipment. This consolidated load is then transported together to a common destination or regional hub.

Who uses freight consolidation?

Freight consolidation is commonly used by logistics service providers (LSPs), freight forwarders, and shippers that typically transport partial loads or small shipments, and want to minimize costs. It can be used for both first mile delivery and last mile delivery.

What are the benefits of freight consolidation?

The benefits of freight consolidation are:

  • Reduced cost per shipment by filling all available truck or container space
  • Fewer transport journeys which means less fuel consumption and emissions
  • Lower risk of damage or delays due to less handling of each shipment
  • Simplified customs clearance for international consolidated freight

What are the challenges of freight consolidation?

Successful freight consolidation requires careful coordination of delivery windows, shipment volumes, and routes. Delays or variability in supplier readiness can lead to hold-ups or suboptimal loading.

Does freight consolidation help improve sustainability?

Freight consolidation can be an effective strategy to reduce emissions per unit of cargo as it helps increase vehicle utilization and cuts down on partially loaded trips. Carbon accounting tools can help companies compare the emissions of consolidated versus non-consolidated shipments, which enables them to make more sustainable decisions for their shipments or transport journeys.

Explore other terms like

Freight consolidation

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Full truckload (FTL)

Full truckload (FTL) is a shipping method where an entire truck is used to transport goods for a single customer or shipment. The truck is filled with one load that is transported from one origin to one destination, without combining it with loads from other shippers.

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Transport/Logistics

Logistics service provider (LSP)

A logistics service provider (LSP) is a company that provides logistics services that enable the transport, storage, or handling of goods. There are different types of LSPs, ranging from LSPs that manage a single activity (e.g. transporting goods from warehouse to retailers) to full-service LSPs that manage the entire logistics process for their clients (also called 4PL).

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Sustainability

Well-to-wheel emissions

Well-to-wheel (WTW) emissions are the total greenhouse gas emissions generated across the entire energy lifecycle of a vehicle, from producing the fuel or electricity that powers the vehicle to using it for transport. It combines both upstream and downstream emissions to give a complete picture of a vehicle’s environmental impact.

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