# Shipment consolidation

*Last updated: 2026-06-22*

> Rather than dispatching cargo individually, shipment consolidation groups smaller consignments from multiple shippers into a single transport unit bound for the same destination or region.

Rather than dispatching cargo individually, shipment consolidation groups smaller consignments from multiple shippers into a single transport unit bound for the same destination or region. A freight forwarder or consolidator collects parcels and pallets from various exporters, maximises the utilisation of containers, aircraft, or trucks, and spreads fixed costs across several customers—so each shipper pays only for their actual share of the load. This substantially reduces the freight cost per kilogram or cubic metre. The trade-off is longer transit times, as departures depend on collecting sufficient cargo volumes within cut-off windows. In ocean freight this corresponds to LCL (Less than Container Load); in road transport it is known as LTL (Less than Truckload) or groupage.

**Source:** [https://en.wikipedia.org/wiki/Freight_consolidation](https://en.wikipedia.org/wiki/Freight_consolidation)

## Quick Facts

| Property | Value |
|---|---|
| Term | Shipment consolidation |
| Language | EN |
| Word count | 115 |
| Last updated | 2026-06-22 |
| Source | https://en.wikipedia.org/wiki/Freight_consolidation |

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