Consolidation
C3. Logistics, freight forwarding and multimodal tradeDefinition
Combining several shipments into one container or unit.
Consolidation is the combining of several smaller shipments into one full container or unit load, so individual shippers share the cost and capacity of a box they could not fill alone. The consolidator stuffs the cargo at a container freight station, issues house bills to each shipper, and presents a single master bill to the carrier. At destination the box is stripped and the consignments are deconsolidated for delivery. The technique underpins the LCL trade and the economics of groupage.