Cargo consolidation refers to the process of combining several smaller shipments of cargo into one larger shipment. This process is typically done to optimize space and reduce costs, as smaller shipments tend to be more expensive than larger ones on a per-unit basis.
Consolidation can take place at various points in the supply chain, such as at the manufacturing plant, warehouse, or port. Freight forwarders and consolidators often play a key role in the consolidation process, as they are responsible for coordinating the movement of goods from multiple suppliers or manufacturers.
The benefits of cargo consolidation include reduced transportation costs, increased efficiency, and improved supply chain visibility. However, it is important to note that consolidation can also increase the risk of damage or loss of goods, as multiple shipments are combined into one container or vehicle. As such, it is important to work with reputable and experienced logistics providers when engaging in cargo consolidation.
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