9 May 2025

What Is Freight Consolidation and Why It Matters in International Logistics

YM Global Cargo

Introduction In international shipping, one of the main challenges is reducing costs without compromising reliability or delivery times. One of the most effective tools to achieve this is freight consolidation. In this article, we’ll explain what it is, how it works, and when it should be used.

Freight consolidation refers to the process of combining several smaller shipments—often from different shippers—into one larger shipment. This method optimizes transportation costs and simplifies the logistics process.

For example, if three small businesses want to ship goods from the U.S. to Europe, but none of them has enough volume to fill a full container, their shipments can be consolidated into one container for joint delivery.

1. Reduced Shipping Costs Shipping costs—especially for ocean and air freight—depend not only on weight but also on volume. By consolidating freight, transport space is used more efficiently, reducing the cost per unit shipped.

2. Streamlined Customs Clearance In some cases, documentation can be submitted collectively, simplifying and speeding up the customs clearance process. However, it's important to note that each shipment still undergoes inspection, and accurate documentation remains essential.

3. More Reliable Supply Chains Consolidated freight reduces the number of transfers and handling points, lowering the risk of items being lost or delayed. It also allows for regular, scheduled shipping routes, contributing to a more predictable supply chain.

1. When shipping small volumes (typically under 5 cubic meters or less than 1,000 kg)
2. When shipping regularly from the same origin
3. When cost efficiency is a priority, while tracking and reliability are still important

1. Transit Time: Consolidation requires additional time to gather and prepare shipments prior to departure, which may extend delivery timelines compared to direct shipping.
2. Reliability of the Logistics Provider: It's crucial that the company managing the consolidation ensures proper handling and accurate sorting.
3. Documentation Accuracy: Every party involved in a consolidated shipment must provide correct documentation. Errors by one participant can delay the entire shipment.

Conclusion

Freight consolidation is a powerful tool in international logistics—especially for small and medium-sized businesses looking to lower costs. Like any logistics strategy, it requires careful planning, attention to detail, and a clear understanding of the process.