Logistics & transporten
Consolidation (LCL)
Logistics operation involving the grouping of goods from multiple shippers into a single container or transport unit to optimise costs.
Definition and principle
Consolidation (or groupage) is a logistics operation whereby a freight forwarder groups goods from multiple shippers into a single transport unit (container, air pallet) to optimise space utilisation and reduce per-unit transport costs.
Process
The consolidation process involves several steps:
- Collection of goods from different shippers
- Consolidation at a warehouse (CFS — Container Freight Station)
- Stuffing into a container (maritime) or building a pallet (air)
- Transport under a master document (MAWB or MBL)
- Deconsolidation at destination in the arrival country's CFS
- Distribution to individual consignees
Advantages
- Cost reduction: the price per m³ or per kg is shared among multiple shippers
- Accessibility: allows small shippers to access international transport at competitive rates
- Regular services: forwarders offer consolidation on regular lines at fixed frequencies
Key watch points
- Transit times are longer than FCL (consolidation and deconsolidation time)
- Damage risks are increased during handling
- Tracking is more complex (multiple documents: MBL + HBLs or MAWB + HAWBs)
- Check insurance conditions: coverage may vary depending on the forwarder and Incoterm used