Consolidation of goods is a shipping service that can reduce overall shipping costs while also increasing protection. The term “goods consolidation” is only one of many terms for the operation, which also includes “consolidation service,” “assembly service,” and “cargo consolidation,” but the idea is the same.
Multiple small packages that are all being sent to the same location are bundled, or consolidated, on a single truck, and then delivered to their destination together. Not only does the mechanism benefit the shipper, but it also benefits the buyer or supplier to whom the items are being shipped.
Shippers are willing to pay bulk prices because they consolidate and export multiple goods at the same time rather than sending multiple smaller shipments separately. Companies that send a few pallets of product at a time or have a high frequency of smaller shipments will benefit from freight consolidation. The shipments would be consolidated and delivered in one container rather than being sent separately.
Although most of the goods in the shipment come from a single source, the cargo may also come from several sources. This ensures that the truck is fully loaded while also lowering costs.