what is the main purpose of cargo consolidation

what is the main purpose of cargo consolidation

1 year ago 56
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The main purpose of cargo consolidation is to combine multiple small shipments into one large shipment for distribution to the same end location. This process is done so shippers can save on shipping costs. Instead of paying for a whole container or truckload, shippers only pay for a certain amount. By consolidating freight, shippers can make the most of higher volumes by either batching their own similar freight or coordinating with other shippers who have product headed in the same direction. The benefits of cargo consolidation include:

  • Reduced rates: Since shippers share truck capacity with other shippers and the fuel usage is decreased, the overall price of transportation is split according to the weight and distance of the freight.

  • Shipment safety: Cargo consolidation offers a safer shipping option since the handling of freight is limited. The more shipments that are combined, the higher the probability is that all of them will arrive safely.

  • Lower costs: Consolidating freight allows shippers to decrease the cost per unit by increasing the volume.

  • Shorter transit times: The direct route can shorten transit time, helping shippers to meet order delivery dates and decrease transportation costs.

  • Improved flexibility and time management: Freight consolidation often offers faster transit times, as well as reducing wait times for transporting small loads. This allows shippers to stay ahead of demand and be on top of their customers needs.

Overall, cargo consolidation is an efficient solution to reduce costs and achieve shorter transit times, making it a promising option for companies who want to compete with giant retailers and are seeking solutions for a fast, convenient, cheaper option to ship their goods.

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