Cargo consolidation services

There are several methods of cargo consolidation:

1. Warehouse-based. Goods are accumulated in a warehouse and grouped according to delivery addresses.
2. Container-based. This method has two main options. The first is partial container loading (Less Container Load or LCL), where shipments from multiple senders are combined into one transport unit, reducing shipping costs through efficient container utilization. The second option involves full container loading (Full Container Load or FCL), where the entire container is allocated to a single company’s goods. This is advantageous for organizations with large volumes capable of filling the container.
3. Cross-docking. Consolidation without warehousing: goods are directly loaded from trucks into containers, train cars, or airplanes. This eliminates costs associated with processing and storage.
4. Multimodal. Consolidated cargo is delivered to its destination using multiple modes of transport.
5. Virtual. Documentation is processed through digital systems.

When transporting consolidated cargo by road, FTL (Full Truck Load — complete semi-trailer loading for one company) and LTL (Less Than Truck Load — partial semi-trailer loading) schemes are typically used.

A consolidation warehouse acts as an accumulation point where goods are gathered for shipment as consolidated cargo.

The functions of a cargo consolidation warehouse include the following steps:

1. Storing products awaiting shipment.
2. Selecting items moving in the same direction. When forming a batch, compatibility in terms of storage and transportation conditions (temperature, humidity), stackability of goods, and other factors are considered.
3. Loading them into the transport vehicle.

A consolidation warehouse is a complex logistics facility and must have the following features:

1. Security and video surveillance to ensure safety.
2. Storage areas with varying temperature and humidity settings for different types of products.
3. Loaders and other mechanized equipment for moving goods.
4. An efficient documentation process that minimizes errors in consolidating shipments.

Some consolidator companies take on additional responsibilities, such as inspecting incoming goods, repackaging, labeling, and organizing returns if the product does not meet the customer's expectations.

It’s important to organize warehouse operations so that cargo processing takes minimal time. Goods with similar destinations and shipping times are placed closer together, while ensuring that incompatible items are kept separate.

Given today’s high volumes of freight flows, managing a consolidation warehouse is impossible without specialized software. A computer can quickly select the most suitable batches and determine the optimal storage arrangement within seconds.

Consolidation of consolidated cargo is carried out in several stages:

1. Receiving and registering incoming goods. The system records the weight, volume, number of shipping units, and any markings applied by the supplier or freight forwarder. Weight and volume data are used to calculate service costs and ensure proper placement of the cargo in a container, warehouse, or transport vehicle (train car, truck, airplane, etc.).
2. Packaging the goods according to the shipper's requirements and transportation rules. If the batch is already packaged by the supplier, this step is skipped.
3. Assigning a unique alphanumeric code to the cargo. This helps identify the shipment among others.
4. Sorting goods by destination and product category. Some products cannot be transported together due to compatibility issues.
5. Storage. This stage continues until enough goods have accumulated for the specified direction or destination.
6. Creating a loading plan for the transport unit. A logistics specialist prepares this plan to ensure the weight of the consolidated cargo is evenly distributed.
7. Loading goods into a container or freight vehicle according to the plan. At the same time, documentation for the consolidated shipment is prepared.
8. Shipping the products to customers.

The consolidation of cargo offers the following benefits:

1. Reduced delivery costs. The shipper pays only for the allocated cargo space, not for the entire transport unit.
2. Efficient use of vehicles. Full utilization of transport capacity reduces the number of trips and environmental emissions.
3. Shorter delivery times. Shippers do not need to wait for a large volume of goods to accumulate; they can send items individually, quickly meeting customer demands.
4. Competitiveness and expanded client base. Logistics companies offering cargo consolidation services can serve a broader range of clients, including those with very small shipments.

A consolidation warehouse evaluates its services based on the following factors:

• weight and volume of the cargo;
• type and value of the goods;
• storage duration;
• distance and geography of transportation (customs clearance may be required);
• possibility of stacking;
• unloading location (at a temporary storage warehouse or delivered directly to the door);
• need for additional operations, such as repackaging.

Rates vary between companies and are determined by the cost of the process for the consolidator, which in turn depends on:

• the level of automation;
• the company's experience and specialization;
• the type of warehouse;
• the comprehensiveness of services provided.

Choosing a logistics company requires careful consideration, as the quality of its work directly affects delivery times and cargo safety — factors that influence the competitiveness of the service user.

The following factors should be considered:

1. Experience and industry knowledge. Consolidation services involve solving a variety of complex tasks. It is reasonable to prefer companies with a long-standing presence in the market, as they understand all nuances and know how to act effectively in unexpected situations.
2. Partnership network. Successful cargo consolidation relies on strong cooperation with carriers, distribution centers, and other warehouses. This ensures timely delivery and easy tracking of cargo movement.
3. Technology and transparency. Advanced tools for processing goods, including automation systems, speed up operations and minimize errors. Real-time tracking of shipments from warehouse receipt to final delivery is highly valued by end consumers who want to monitor their orders. For cargo owners, this feature allows them to take prompt action if anything goes wrong.
4. Flexibility. Logistics providers that can quickly adapt to individual client needs have an advantage. Market conditions are constantly changing, and the company should respond accordingly.
5. Quality and reliability of service. Review feedback about the company and ensure it delivers goods on time without losses or damage.
6. Specialization. Verify whether the logistics provider works with your type of cargo, ensuring proper storage conditions and compliance with transportation rules.
7. Responsibility and insurance. A logistics company offering cargo consolidation should insure its clients' property. Alternatively, the contract may specify compensation amounts in case of damage or loss.
8. Communication. Ensure the support team is easily reachable. Ideally, each client should have a dedicated personal manager.

Of course, pricing is an important criterion for service users, who typically focus on the most cost-effective offers.

However, remember that low rates often correlate with lower service quality. The mid-price segment usually offers the best balance between cost and reliability.

A logistics company providing cargo consolidation services can be found in the Roolz directory. Choose a reliable partner or add your company to access new logistics opportunities through the Roolz platform!