What Is Consolidation and Deconsolidation?

February 28th, 2022 in Freight Transportation
What Is Consolidation and Deconsolidation?

Consolidation and deconsolidation are technical terms used in shipping and logistics. Consolidation means combining several smaller shipments into one shipment, and deconsolidation is the opposite.

The theory behind consolidation is that sometimes shippers are shipping LTL or “less than full load” shipments, and if the shipments are combined, it’s possible that the shipping could be cheaper or more economic. However, in practice, this is not always true because there is a cost associated with the time and space needed to consolidate shipments. Sometimes smaller shipments are not all arriving at the same time, and in order to consolidate, other shipments would have to be held back. 

Deconsolidation is the opposite of consolidation. Sometimes there are reasons why big loads have to be broken down into smaller loads. An example of this would be if a shipment needs to go in smaller units to different end retailers. Similarly, there is a cost in both time and money when large shipments need to be broken down into smaller shipments. 

The nature of the shipping and logistics business is to find the best, most efficient, and most cost-effective shipping solution for the client. Experts in shipping and logistics are making these sophisticated calculations all the time on an ongoing basis for clients.

Pacific Coast Distribution, based in Langley, BC, on the Lower Mainland can help you with your shipping and logistics needs. Call us at (877) 999-8489 if you need help moving your products quickly and efficiently. We work with each client individually to find the best and most efficient solution for their products.

Pacific Coast Distribution, LTD, is a family-owned transportation and logistics company, based in Langley, British Columbia, with 20 years of experience and a fleet of 50 trucks and a 60,000-square-foot warehouse. 

If you have any questions about this article or would like to talk to us about your transportation and freight needs, give us a call at (877) 999-8489.

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