If you are constantly on the hunt for ways to save your company money without sacrificing efficiency or speed, take a look at your shipping costs and practices. If your company routinely orders less-than-truckload (LTL) shipments, freight consolidation could represent an excellent opportunity for savings.

What Is Freight Consolidation?

When a truck goes out from a shipping company’s distribution center without a full freight load, everyone is throwing away money and resources. The shipping company is wasting space and vehicle costs by sending out half-empty trucks; your company is wasting money by paying for the entire truck space when all you need is part of it.

This is where freight consolidation comes in. It is the practice of combining separate shipments from different companies into single truckloads. If three LTL shipments have destinations within reasonable distances of one another and can fit into a single truckload, using freight consolidation means instead of sending out three trucks, the distribution center only needs to send out one.

The Benefits of Freight Consolidation

When a distribution center maximizes truckload space by combining shipments into single truckloads, they use fewer trucks and save money on the associated maintenance and labor costs. With more of their trucks available, they can make more shipments. More shipments and lower costs mean increased profit for the shipping company, and increased profit means lower costs for your company without sacrificing efficiency or speed. In fact, freight consolidation often leads to quicker shipping times. Everybody wins.

In need of refrigerated shipping? With the largest refrigerated food warehouse in Hawaii, Unicold Corporation in Honolulu has been providing refrigerated shipping and cold storage services since 1962, serving all of Hawaii, as well as Los Angeles, Oakland, CA, and Seattle, WA. Reach their Honolulu headquarters at (808) 836-2931, and view their website to learn more about their services.