Today we are going to dive in and learn about a part of cost savings part of commercial trucking called freight consolidation. If you have not heard this term before, you are sure to in the future. In actuality, this is pretty basic terminology that simply means what it says: a consolidation of freight. In plain English, freight consolidation is similar to how a distribution center would load a truck with shipments intended for multiple different retailers of other final destinations. You might wonder why anyone would consolidate their loads. This process is where various small shipments are combined together typically through consolidation services. The loads paired together are all being sent to the same general destination in order to reduce shipping costs. The benefits of freight consolidation saves you money by bundling these smaller shipments into one bigger one. This way will be able to get your shipment where it needs to go for much cheaper and quicker than paying for a full truck.
To compare these two terms we first need to know what they mean. LCL stands for less-than-container-load, which refers to a scenario when multiple shipments from different shippers have been consolidated into one container.
FCL stands for full-container-load, which is when you pay for the exclusive use of a container for transportation to the final destination.
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