A freight consolidator is a logistics company, agent or company that helps in consolidation process. But what is consolidation in logistics? It refers to the process combining multiple freight or shipments into one so as to make a shipment that can fill an entire container load, one of our previous posts introduces consolidation and deconsolidation in detail.
Who is a Freight Consolidator?
Also called as shipping consolidators, freight consolidators are highly beneficial to companies that operate at a medium or small scale. They are an agency or a company that possesses expertise in consolidating international freight shipments. They club different freight shipments from multiple shippers (could be from a single shipper but from various location) into one full container load.
Freight consolidators benefit the shippers as well as the carriers. Their extensive network with shippers, shipping lines and even manufacturing companies, import-export businesses aids them in connecting shippers with the shipping lines and provide the best possible shipping schedule at competitive rates.
Role of a Freight Consolidator
Freight consolidators are a significant part in any supply chain and logistics operations. Consolidation – air, ocean, road or rails – helps in reducing costs, overcoming transportation challenges, choosing the best modes, etc. Here’s how freight consolidators help –
By Consolidation and Forwarding:
Shippers often confuse forwarding with consolidation, and they aren’t totally wrong in being confused about it, that’s because consolidators usually provide freight forwarding services as well, or vice versa. In addition to only consolidating, consolidators may offer many additional and value added services too; like packing, insurance assistance, recommending best routes and schedules, local transportation, customs clearance, etc.
Consolidators not provide services to the shippers, but also to the shipping companies and agents, thanks to their extensive network.
With LCL Shipments: Competition in the market is pretty high, with giants capitalizing a major chunk of the market share, it gets even more difficult to compete, given the cost, infrastructure and resources associated with this. SMBs usually do not have shipments that can fill an entire container load, therefore, they opt for LCL, less than container load, shipments. Freight consolidators help in shipping these LCL shipments to the international markets.
By Aiding International Buyers and Suppliers:
Consolidators do a lot more than just consolidation. They possess knowledge of all the logistics requirements of various international markets and help SMBs save costs and overcome any challenges that SMBs might face in shipping, all thanks to their extensive network with shipping lines and agents.
Consolidators offer clearance, broking, export services and more to serve companies with their shipping requirements. They collaborate with local buyers and suppliers, SMBs, to fulfill the orders received from large companies or foreign buyers, a win-win for all.
By Facilitating Businesses of SMBs:
International buyers or foreign buyers generally appoint an agent, who might be a consolidator, to share an assortment of shipments from various SMBs. These shipments are products buyers are looking for, quality of which is doctored by the consolidators themselves. This way, consolidators help SMBs.
ProConnect Integrated Logistics For Consolidating your Shipments
We are global freight forwarders based in UAE and Saudi Arabia providing not just consolidation services, but a lot of other logistics services. We specialize in customizing logistics services based on your requirement. For your upcoming LCL shipping needs, evaluate us. Get Quote.