Cargo Consolidation
- Cargo Consolidation is the process under which a freight forwarder/consolidator at the port of loading (POL) combines / consolidates several small consignments to make up a full container load (FCL).
- In this arrangement containerized goods are shipped hence offering greater security at lower shipping/freight rates.
- At the port of discharge/destination, the consolidated shipment is separated (deconsolidated or de-grouped) back into the original individual consignments for delivery to their respective consignees.
- Individual consignees will be entitled to House bill of lading (HBL).
Advantages and Disadvantages of Cargo Consolidation
- The major advantages of cargo consolidation include;
- Consolidation of freight by different individual consignees thus minimizing on the freight cost.
- Maximizing on the container utilization.
- Cutting on the freight cost thus minimizing on the final cargo destination cost.
- Minimize on the time for shipment thus discouraging dumping at the supply point.
- The disadvantages are as below;
- It may take long to fill up a full container load which may result to the delay of shipment
- High charges by consolidators at the port of loading and discharge
- Depending on one consolidator controlling the whole consignment since he holds the master bill of lading (MBL), therefore no control of own goods.