Buyer’s Consolidation or Segregation: The Most Effective way of Shipping Cargo
Buyer’s Consolidation
Buyer’s consolidation shipment (also simply known as freight consolidation) is a method of shipping cargo you may consider when shipping two or more shipments from different suppliers in the same country.
It essentially means combining a number of smaller shipments into larger shipments, with the aim to reduce costs in the overall supply chain. It’s the opposite of so-called ‘segregation’, which involves delivering each shipment individually. To use shipping terminology, it will involve consolidating two or more LCL (Less than Container Load) shipments into one FCL (Full Container Load) shipment. Organising LCL shipments is relatively easy but sending multiple LCL shipments to the same destination can be unnecessarily costly.
Buyer’s consolidation is a method of shipping freight from a point of origin to an end destination by grouping your shipments together into one larger shipment. By consolidating a number of shipments, you may be able to save on shipping costs and reduce the risk of damage to your freight.
If you’re looking to understand what buyer’s consolidation is, as well as its benefits and its pitfalls, you are in the right place. Below we explain how this method of shipping works, as well as a list of the advantages and disadvantages of adopting this process.