What Is Freight Consolidation and How Does It Reduce Shipping Costs?

February 20, 2025

Freight consolidation is the process of combining multiple shipments into a single, larger shipment to reduce transportation costs and improve logistics efficiency.

How Freight Consolidation Works:

  1. Multiple smaller shipments from different customers or locations are collected at a central facility.
  2. Shipments are grouped together based on destination zones to maximize space utilization.
  3. The consolidated shipment moves through linehaul to the final delivery hub.
  4. Individual packages are sorted and delivered to customers.

Benefits of Freight Consolidation:

✔️ Lower Shipping Costs – Reduces per-package transportation costs.

✔️ Improved Delivery Efficiency – Fewer touchpoints mean less risk of delays.

✔️ Minimized Environmental Impact – Fewer trucks = lower carbon footprint.

How FirstMile Uses Consolidation to Reduce Shipping Costs:

🚀 We consolidate packages at our sortation hubs before induction.

💰 Reduces shipping costs through bulk transport savings.

📦 Optimizes shipping lanes for faster and cheaper delivery.

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