It’s a logistics conundrum that almost every shipper faces: how to best route freight that is more than 6 pallets but not enough for a full truckload. LTL may not be your best option because most common LTL carriers shy away from these high pallet count loads. So if they do take them, you could end up paying cost equivalent to a truckload—or even more! And in some cases choosing truckload service may be a less eco-friendly choice because of the unused space. This is the spot where freight consolidators can add value and efficiency to the supply chain.

First, for a quick primer on how LTL consolidation works, watch this video. Essentially, you combine partial loads to create full multi-stop truckloads, which is very efficient.

To be able to consolidate, you must have these components:

  1. Technology. The system should be able to examine every LTL load to see if it can be combined with other loads on nearby routes, and then build multi-stop full truckloads of freight.
  2. Volume. No matter how good your software is, you can’t consolidate freight unless you have significant LTL volume. Fortunately, through freight consolidators even small volumes can ship via LTL.
  3. Consolidation facilities. You’ll need a center to combine partial loads for loading onto full trucks for delivery. If you are an international shipper, the facility should also enable consolidation of partial containers into full containers for the same type of favorable economics.

If you’re a small- to medium-sized shipper you may have difficulty accessing the essentials for freight consolidation. You may not have the technology or enough freight to consolidate on your own, but that’s where consolidators can help. These companies bring partial loads from many shippers into their consolidation centers, and they use their technology and volume to create full truckloads. Any company participating in this process receives greater efficiency and saves money.

There’s something else you should know, too. Consolidation Centers are not sleepy warehouses where freight sits around, collecting dust. There’s a lot of activity and planning involved, with compatible loads constantly being combined and shipped. Often freight comes into the center and goes out within 24 hours. But with extreme efficiency at the heart of consolidation, freight is typically handled less often than a typical LTL load. So consolidation can also help prevent damage and claims.

Have you worked through a consolidator, and does this explanation hold true for you?