What is a consolidation fee?

Consolidation Fee Description: Only applying to ocean freight LCL and to air freight, this a service fee for bringing together and packing several smaller shipments into the same container. AKA Assembly service, Cargo Consolidation, Freight Consolidation.

What is a consolidation fee in freight forwarding?

A fee charged to a shipper by a freight forwarder for services related to consolidation in LCL shipping. The price for consolidation is not included in the general freight rate, so the forwarder will apply it as an extra charge, called a consolidation fee.

What are the benefits of a consolidation fee?

Consolidation Fee Tips: There are two potential benefits for shippers: better freight rates and better cargo security. The consolidation service fee is for bringing together & packing several smaller shipments in the same container. Find out about potential benefits & more!

How does freight consolidation affect shipping costs?

Lesser Freight Shipping Cost – Freight consolidation is well known to have a big impact on the freight shipping costs as the shippers only pay for the amount of space booked for their cargo, as opposed to the FCL / FTL shipment, where the shippers pay for the entire container load.