Consolidation

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Last updated: 22 June 2026Published: 19 June 2025

Source: https://www.inboundlogistics.com/cms/article/consolidation-modes/

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Logistics Concept

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Definition & Explanation

Consolidation is the core technique freight forwarders use to group shipments from multiple shippers into a single transport unit, dividing the freight cost proportionally among all parties. In sea freight this service is known as LCL – Less than Container Load; the equivalent in road and air forwarding is called groupage. Cargo waits at the consolidation point until enough freight accumulates to fill the unit, which extends transit time compared with direct shipment. Consolidation is the natural counterpart to FCL (Full Container Load) and is the standard solution for smaller volumes where booking exclusive space would be uneconomical. Charges are typically calculated per kilogram or cubic metre, whichever yields the higher revenue for the carrier.

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