How to Save Costs Through Consolidated Freight Shipping?

Are you also facing high transportation costs, complex supply chain management, high customer expectations for fast delivery, and erratic logistics timeliness? Consolidated Freight Shipping, as an efficient and economical logistics solution, is gradually becoming the first choice for many companies. But what is package consolidation? What problems can it solve? And how to choose a reliable service provider? As a professional service provider who has been deeply involved in the field of international fulfillment for more than 10 years, Chinadivision will provide you with an in-depth analysis through this article.

What is Consolidated Freight Shipping?

Consolidated Freight Shipping, that is, cargo consolidation transportation, refers to the consolidation of multiple small batches of goods into a larger cargo unit for transportation. This model is similar to carpooling, where multiple sellers' goods share a shipping container, thereby achieving cost sharing and improving transportation efficiency, and reducing the cost of single-piece logistics through economies of scale. For example, using the package consolidation service, a cross-border e-commerce seller consolidated 100 items from warehouses in Shenzhen, Yiwu and Guangzhou into one shipment and sent it to the US overseas warehouse, reducing freight costs by 40%-60%.

Which types of goods are most suitable for package consolidation?

High-frequency small items: electronic accessories, clothing, light industrial products

Multi-SKU combination orders: customized product sets

Long-tail replenishment products: standing inventory in overseas warehouses

Why do companies need Consolidated Freight Shipping?

1. Reduce costs

Freight savings: By combining multiple small packages into one large package, companies can enjoy lower unit shipping costs. Especially for small and light goods, consolidated shipments can significantly reduce the first weight fee, thereby reducing overall logistics costs. For example, the total cost of shipping six packages weighing 1kg each separately may be as high as $117; with consolidated transportation, the total cost can be reduced to $43.

Reduce operating costs: Consolidated transportation reduces the number of times goods are handled, reducing labor costs and operating risks.

2. Improve efficiency

Simplify the process: Consolidated transportation reduces the number of tracking numbers and documents for goods, making supply chain management more efficient. Consolidated freight reduces the number of shipments, shortens the transportation cycle, and improves logistics efficiency.

Speed ​​up transportation: Consolidated goods are processed faster at customs and other inspection points because they are treated as a whole.

3. Environmentally friendly

Consolidated transportation reduces the number of times transportation vehicles are used, thereby reducing carbon emissions and is a sustainable logistics option.

4. Improve security

Since the number of times consolidated goods are handled is reduced, the risk of damage, loss or theft of goods during transportation is also reduced accordingly.

Core advantages of consolidated shipping services

Cost optimization: single-item shipping costs are reduced by 30%-70% (taking China-US air transport as an example, the unit price of 1kg is reduced from $6 to $3.5)

Improved customs clearance efficiency: single-ticket declaration reduces document processing time and potential inspection risks

Controllability of terminal distribution: centralized tracking of shipment status to avoid the risk of multiple packages being lost

Environmental protection and carbon reduction: reduce packaging material waste and transportation carbon emissions (according to DHL data, consolidated shipping can reduce carbon footprint by 22%)

Can package consolidation really save money?

First-leg freight: taking 100kg of goods as an example, the unit price of scattered shipments is $4.5/kg, and the unit price after consolidation is $2.8/kg, saving $170

Tariff costs: consolidated declarations can utilize tax-free quotas (such as $800 tax-free quotas in the United States)

Management costs: reduce customs declaration document processing time by more than 50%

The key to saving money from package consolidation is to reduce unit transportation costs through economies of scale. When multiple small packages are combined into a large package, the load and volume of the transport vehicle can be fully utilized, thereby reducing the transportation cost of each unit of goods. In addition, some logistics service providers also provide additional preferential measures, such as full amount exemption, long-term cooperation discount, etc., which further reduce transportation costs.

Advantages and Disadvantages of Package Consolidation Service

Package Consolidation Service is a specific form of consolidated freight shipping, which is aimed at the international transportation of small goods. The advantages of this service are:

Greatly save money: By merging multiple small packages into a large package, they can be shipped in a centralized manner, diluting the transportation costs, and significantly reducing transportation costs.

Convenient and efficient: Consolidated freight can reduce stopover and sorting time, and customers only need to sign for one package, which greatly simplifies the delivery process.

Reduce loss rate: The consolidated package is less likely to be lost during transportation.

Reduce environmental impact: Centralized transportation can reduce the number of vehicle operations, reduce carbon emissions, and be more environmentally friendly.

However, there are also some potential disadvantages of package consolidation service, such as the possible increase in volume and the easy damage of fragile items during transportation. Consolidated freight needs to wait for a certain number of orders or packages, which may extend the shipping time of some goods. Therefore, when choosing such services, you need to carefully evaluate the characteristics of the goods and transportation needs.

How to achieve Consolidated Freight Shipping?

Package Consolidation Service

This is the most common consolidation method and is suitable for e-commerce sellers. Sellers send multiple small packages to a consolidation center, and then the consolidation service provider consolidates these packages into a large package for transportation. For example, the package consolidation service provided by MyUS can consolidate multiple packages and send them to all parts of the world at a lower shipping cost.

Order Consolidation

Businesses can consolidate multiple orders into one shipping unit, especially when the destinations of these orders are close. For example, the order consolidation service provided by Dropoff can consolidate multiple orders from the same region or the same customer into one shipping unit, thereby reducing transportation costs.

Cargo Consolidation

For goods that need to be shipped by sea or air, cargo consolidation is an ideal choice. It combines multiple small batches of goods into one container, thereby reducing transportation costs.

Is package consolidation suitable for international transportation?

Package consolidation is very suitable for international transportation. In international logistics, the transportation of individual goods is often not cost-effective due to factors such as long distances, complicated procedures, and high costs. By consolidating goods, transportation costs can be significantly reduced and logistics efficiency can be improved. At the same time, international logistics service providers usually have rich experience and resources, and can provide customers with professional packaging, customs declaration, customs clearance and other services to ensure that the goods arrive at the destination safely and on time.

Common pain points and solutions

How to choose a suitable consolidation service provider?

It is crucial to choose a reliable consolidation service provider. Chinadivision International Fulfillment Service Provider, with its rich experience and professional logistics team, can provide customized consolidation solutions for enterprises. They can design the most optimized transportation routes and packaging solutions according to the specific needs of the enterprise to ensure that the goods arrive at the destination safely and efficiently.

Will consolidated transportation affect the timeliness of goods?

Consolidated transportation does not significantly affect the timeliness of goods. On the contrary, consolidated transportation often speeds up the transportation of goods by reducing the number of handling times and transportation links of goods. Chinadivision can ensure that goods arrive on time through an efficient logistics network and advanced technical systems.

Is consolidated transportation suitable for all types of goods?

Although consolidated transportation is suitable for most goods, some special goods (such as fragile or overweight goods) may require special handling. Chinadivision's professional team can provide personalized packaging and transportation solutions based on the characteristics of the goods to ensure the safety of the goods during transportation.

How does Chinadivision help consolidate goods?

As a professional international fulfillment service provider, Chinadivision provides a one-stop cargo consolidation solution. They can not only help companies optimize transportation costs, but also track the transportation status of goods in real time through advanced logistics management systems. In addition, Chinadivision also provides warehousing services, and companies can store goods in their warehouses and wait for sufficient cargo volume before consolidating transportation.

Chinadivision provides the following services to help customers consolidate goods:

Cargo collection and warehousing: We have an advanced warehousing system that can provide customers with cargo collection, storage and management services.

Cargo packaging and marking: According to the characteristics of the goods and transportation requirements, we provide professional packaging and marking services to ensure the safety and accurate identification of the goods during transportation.

Customs declaration and customs clearance: We have a professional customs declaration and customs clearance team that can provide customers with fast and accurate customs declaration and customs clearance services to ensure smooth customs clearance of goods.

Transportation and Tracking: We have established partnerships with many internationally renowned logistics companies and can provide customers with a variety of transportation methods and flexible transportation solutions. At the same time, we also provide real-time cargo tracking services to keep customers informed of the transportation status of the goods at any time.

By choosing Chinadivision as your international fulfillment service provider, you can enjoy efficient, economical and safe consolidated freight shipping services. We will wholeheartedly provide you with professional solutions and high-quality service experience.

Consolidated Freight Shipping is an efficient, economical and sustainable logistics option that can help companies solve many pain points. By choosing Chinadivision as an international fulfillment service provider, companies can enjoy professional integration services, optimize supply chain management, and improve customer satisfaction. If you have any questions about Consolidated Freight Shipping or need further help, please feel free to contact Chinadivision. We will wholeheartedly answer your questions and provide personalized solutions.