IMPARGO's transportation and logistics glossary

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IMPARGO's logistics glossary/C/Consolidation in lorry / truck transport

Consolidation in truck transport

Consolidation in lorry / truck transport is the process of combining several smaller shipments from different shippers into one larger load. Instead of moving many half-empty trucks, a carrier groups compatible consignments in the same vehicle or trailer.

By consolidating freight, transport companies can use truck capacity more efficiently, reduce empty or underutilised runs and lower cost per shipment. This is especially common in LTL (less-than-truckload) and groupage services, where many partial loads are combined into one line haul and then distributed again.

Consolidation can be organised via hubs and terminals, cross-docking, milk runs or other logistics strategies. In modern operations, TMS (transport management systems) and planning tools help identify which shipments can be consolidated based on route, delivery window, weight, volume or customer requirements.

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