Consolided charge
LTL, also known as freight consolidation, refers to the process of combining multiple smaller freight shipments into a single larger shipment. This method is commonly used in freight transportation to optimize efficiency and reduce costs associated with shipping smaller loads separately.
Types of Consolidated Cargo:
Air Cargo Consolidation: In this type, airlines combine multiple cargo shipments from different shippers into a single shipment to maximize the cargo capacity of their aircraft and optimize air transportation efficiency.
Maritime Cargo Consolidation: Similar to air cargo consolidation, this method involves combining multiple cargo shipments into shared ocean containers. Containers are filled with cargo from different shippers before being shipped by sea to their final destination.
Land Cargo Consolidation: In trucking, freight consolidation can occur when multiple freight shipments are combined into a single truck for delivery. This can be especially beneficial for smaller volume loads that would not completely fill a truck on their own.
Characteristics of Consolidated Cargo:
Space Optimization: It allows you to maximize the load capacity of the means of transport by combining multiple shipments in a single container or vehicle, which reduces the costs associated with the transport of partial loads.
Costs reduction: By bundling multiple shipments into a single larger shipment, economies of scale can be achieved that reduce transportation costs per unit of cargo, benefiting both shippers and carriers.
Lower Environmental Impact: By reducing the number of individual shipments, LTL can help reduce carbon emissions associated with transportation by minimizing the number of vehicles needed on the road, in the air or at sea.
Greater Operational Efficiency: Freight consolidation simplifies the process of handling and tracking shipments by reducing the number of individual transactions, which can improve operational efficiency for both shippers and carriers.
