Consolidation is a process in logistics where freight from different shippers, warehouses or other locations are collected into one delivery. It involves removing unnecessary courier and transport costs by reducing the number of trips made by each truck. This helps to reduce fuel consumption and carbon emissions over time. 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.
Also called as shipping consolidators, freight consolidators are beneficial for companies that operate at a medium or small scale. They help aggregate international shipments from different shippers into one full container load.
Freight consolidators are agents for shippers and shipping lines. They help connect a wide range of companies with the supply chain, such as manufacturers, importers or exporters. Their services allow them to provide competitive rates on shipping service and schedule based on their vast network of contacts in the industry.
Role of a Freight Consolidator
Freight consolidation is a major part of supply chain logistics, and helps in reducing costs, overcoming transportation challenges, choosing the best modes for shipments.
By Consolidation and Forwarding:
Forwarding used to be seen as a type of consolidation. However, it is getting an increasing emphasis in freight forwarding companies that are offering services beyond typical shipping alone. Consolidators offer many other value-added services like packing, insurance assistance and recommending the best routes for cargo delivery among others; customs clearance is not included because consolidators mainly service overseas shipments only.
Consolidators are able to offer services not just to shippers, but also shipping companies and agents.
With LCL Shipments: Competition in the market is pretty high today, with the giants taking up a major chunk of it, it gets even more difficult to compete when you’re small and don’t have much resources or using cost-saving infrastructure like LCL shipments. These are so called “less than container load” shipments that SMBs prefer instead because they’re not too big to fill a whole shipping container. Subcontractors help out by finding transport for these smaller shipments in international markets which can be sent from their warehouse with freight consolidators helping out at pickup time.
By Aiding International Buyers and Suppliers:
Consolidators can provide invaluable support for international shipments. They are able to offer advice about the logistics requirements of various countries and help save costs for small businesses by offering an extensive network with shipping lines and agents.
Consolidators offer a range of services to companies in order to complete the orders received from large businesses or international buyers. They collaborate with local suppliers and SMBs who benefit from their collaboration as well.
By Facilitating Businesses of SMBs:
International buyers and foreign buyers generally appoint an agent to help them – the consolidators are experts in shipping. These shipments are products that international or foreign buyers want, with doctored quality by the consolidators themselves. This way, these SMBs can benefit from a wide range of goods at affordable rates offered by a single person-or company!
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.