Small Business Brief

Shipping & Transportation

What Are the Shipping Benefits of Freight Consolidation?


Did you know that the global logistics industry was worth over $14 million in 2022?

As the world economy revs up again, shipping costs are also increasing. So, many businesses are looking for ways to reduce shipping costs.

Do you own one of these businesses? Then you’re in the right place. We have the answer for you: freight consolidation.

So read on to learn how it works and what benefits it could bring you and your company.

What Is Freight Consolidation?

Freight consolidation is combining multiple smaller shipments into one larger shipment. The consolidation process includes warehousing, inventory management, a freight audit, and packing & relabeling of the shipments.

The practice involves combining different types of freight onto one mode of transportation. 

Freight consolidators also hire employees to help coordinate and organize the consolidation process, including collective loading and unloading services.

Different Types of Freight Consolidation

There are several different types of freight consolidation. Below are some you may need to be aware of for your business.

Direct Consolidation

Direct consolidation involves combining goods from different shippers. The items are then shipped from the sender to the receiver with minimum handling. 

Cross-Docking

Cross-docking is the practice of unloading items from incoming trucks or rail cars. Items are quickly loaded onto outbound trucks with little or no storage. 

Full Truckload Consolidation

Full truckload (FTL) consolidation combines several smaller freight loads. Consolidators then ship these freight together in one full truckload. This process enables tracking entire shipments by a single truckload carrier. 

Priority Consolidation

This is a type of freight consolidation that is specific to hazardous materials. This method helps to cut the need for storage or handling before final delivery. This also includes services such as segregation, packaging, palletizing, quality assurance, and labeling. 

Partial Truckload

Partial truckloads are helpful for businesses that don’t have enough freight to fill an entire truck but still need to move freight regularly. This could also work for companies with multiple smaller shipments requiring delivery.

Pool Distribution

Pool Distribution works by taking many small shipments sent by many shippers. Consolidators combine the shipments into one larger shipment.

Benefits of Using Freight Consolidation Services

There are benefits of freight consolidation like the one offered by ITG Trans specialty services. Below are some advantages to help you decide whether to use the services for your business.

Reduced Costs

The practice of freight consolidation can reduce shipping costs by grouping smaller-volume shipments into larger shipments. Shippers can access discounted shipping rates and save money.

Carriers can reduce their fuel and maintenance costs. This cost-saving is passed on to the customer through reduced transportation and warehousing costs. 

More Efficient Carrier and Shippers

The process also increases efficiency for both the carrier and the shipper. This benefits both parties, as it reduces the number of trips the carrier makes. 

Consolidation also allows carriers to increase their truckload volumes. They can make more efficient use of their resources. It helps them meet delivery targets. 

Improved Inventory Control and Tracking

Because the process increases efficiency, there are fewer shipments and fewer delays. With fewer shipments, shipping supervisors gain greater control over the entire process. This can improve accuracy, stricter financial controls, and better data analysis.

Simplified Scheduling Processes

Simplified scheduling processes are also a perk of consolidating shipments. This is because the process allows for a more efficient allocation of resources. And there is greater control over the transportation system. 

Shippers can expect improved service from carriers and reduced needs for re-planning schedules. Communication between the shipper and receiver could also improve.

So What Shipping Container Should You Use?

Shipping containers are metal boxes designed to transport cargo by ship, truck, or rail. They come in many different sizes and types.

Listed below are the four main types of shipping containers: dry vans, open tops, flat racks, and refrigerated containers. Read on to learn all about them.

Dry Vans

Dry vans are one of the most common types of shipping containers and are the most used in the international shipping industry. These are non-temperature-controlled containers with either door on one or both ends for easy access.

They come in many sizes to meet the needs of any cargo. You can see them used on rail cars, sea vessels, and trucks to transport goods.

Open Tops

Open tops are large, rectangular steel boxes with a top open at one end. They have either a drop-down sheet or a removable tarpaulin cover. 

These containers are used to transport heavy or oversized items. This type of container allows cargo loading from the top through the open end of the container.

Flat Racks

Flat Racks are shipping containers used for more oversized, bulkier items or items not suitable in standard cargo containers. They come in two types, open and collapsible.

An open flat rack can be loaded and unloaded from either end. S collapsible rack can be folded down when not needed, making it easier to store. Shippers use these containers to transport large crates and drums.

Refrigerated Containers

These containers keep the contents inside at a consistent temperature below freezing. These containers are for perishables that need a cold environment for storage and transportation.

Refrigerated containers are also suitable for hazardous materials. Shippers can use them to keep certain medications and chemicals cool.

Save Your Money Now!

Freight consolidation is a great way to save on shipping costs, speed up delivery times, and maintain dependable supply chains. It is a cost-effective solution for business owners and eCommerce retailers like you who are looking to optimize their shipping operations.

There are many options you could choose from. And it’s easy to get started. 

Contact a freight consolidation service today. And see how you can enjoy the advantages of freight consolidation!

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