Rising shipping costs are a problem for every business, but it can be especially challenging when you’re being charged a premium for sending out smaller ‘less than truckload’ or ‘LTL’ shipments, paying for empty space in the full truckload that you’re not using.
But what are your options? Delay shipping until you have enough to justify the expense? It doesn’t feel like a sound business strategy.
The true answer lies in freight consolidation. And at Millennium Cargo, we’re experts.
What is Freight Consolidation?
It’s simple really – it’s when lots of little shipments from different shippers are all combined together into one big shipment to fill the truck. You go from paying LTL prices to FTL (‘full truck load’) rates, which is a lot more cost-effective.
By using freight consolidation, you get the same shipping for less cost. What’s to lose?!
The Different Types of Freight Consolidation
The differences in freight consolidation are based on where the consolidation happens, and there can be different costs and logistical issues with each. Happily, at Millennium Cargo, we’re experts with them all and can help you select the right options that best work for you.
- Terminal consolidation – This is where all the smaller shipments are collected at a central location (usually a warehouse), combined there, and then shipped out.
- Shipper consolidation – With this, the work of combining multiple LTL loads happens by the shipping company, consolidating everything before passing it onto the carrier.
- Carrier consolidation – Here, the carrier itself groups the shipments that have come in from different businesses, putting everything that’s going to the same place together.
Common Freight Consolidation Concerns
Shipping is a high-worry proposition for many businesses, especially when they are new to the process. The added complexity, as well as some myths about freight consolidation, may mean you have a few reservations. These are some common worries:
- ‘Consolidation means I’ll lose control over my shipment’ – not true – Your shipment is still your shipment. You retain complete control and visibility throughout the process, with up-to-date tracking and all other benefits.
- ‘Consolidated shipments are more vulnerable to theft or damage’ – not true – The same tight security measures will be in place to protect all the cargo in a consolidated shipment.
- ‘Consolidation is too complicated and time consuming’ – not true – Well, not true if you use Millennium Cargo! Our expertise means we make the process seem simple.
- ‘Consolidation is only beneficial for large businesses’ – not true – Companies of all sizes can benefit from consolidation with their LTL shipments; there’s no bias.
- ‘Consolidation is only for larger LTL shipments’ – not true – In fact, those smaller shipments are perfect for helping fill the containers.
How Does Freight Consolidation Save Money?
When you consolidate shipments, you take advantage of FLT rates – which typically work out lower than LTL rates on a per-unit basis.
Not only that, but carriers are more likely to offer discounts for larger shipments. That means that as your freight forwarder, we can negotiate better rates that qualify for volume discounts.
Your business cash flow also benefits as you are able to buy in smaller quantities, not needing to commit to larger inventories.
The Added Bonus Of Freight Consolidation
Freight consolidation is:
- Safer – The consolidation streamlines the shipping process, reduces handling time and lowers the risk of damage or loss.
- Quicker – Without the delay of waiting for a full truckload to ship, you can send your goods on demand, as and when they’re needed. Businesses using consolidation can also access capacity during peak times when carriers are otherwise fully booked for LTL shipments.
- Greener – Consolidation means fewer trucks on the road, making the whole process much more environmentally responsible with lower fuel consumption and fewer emissions.
Ready To Buddy Up For Cheaper Freight?
The modern world is always looking for ways to improve business efficiency and lower environmental impact – problems that are especially important in the world of international freight. The wasteful process of having half-filled trucks powering across the country is prevented thanks to a little centrally-organised sharing. Freight consolidation is the cargo version of sharing your daily commute with a colleague who splits the fuel bill with you, only you don’t have to argue over what’s on the stereo.
At Millennium Cargo, we work with our partners to provide comprehensive cargo consolidation solutions that maximise efficiency and minimise cost for everyone involved. Contact us today.