Glossary/
Consolidation

Consolidation

Consolidation (freight consolidation, or groupage) is the practice of combining smaller shipments from several shippers into one container or air unit. The load moves under a single master bill or master air waybill, each shipment on its own house bill. It is how LCL ocean freight and consolidated air cargo are built; NVOCCs run it at a CFS.

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Reviewed September 2026.

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All glossary terms|Consolidation

Consolidation vs FCL: FCL is one shipper's cargo in a whole container; a consolidation shares the container among several shippers, which is what LCL means.

What is freight consolidation?

Consolidation is the practice of combining cargo from several shippers into one container, so each pays for the space it uses instead of for the whole container. It is how LCL shipping works, and how buyer's consolidation programs work.

How a consolidated shipment moves

  1. Each shipper delivers its cargo to the origin container freight station (CFS) before the receiving cut-off
  2. The consolidator stuffs one container with cargo bound for the same destination CFS
  3. The ocean carrier issues one master bill of lading to the consolidator, who issues a house bill of lading to each shipper
  4. At destination the container is deconsolidated at a bonded CFS and each consignment is released against its own house bill once customs clears it

How consolidated freight is priced

Consolidated ocean freight is billed by revenue ton on the weight-or-measurement rule: one revenue ton is 1 mยณ or 1,000 kg, whichever is greater, usually with a one-revenue-ton minimum. On top of the ocean rate come origin and destination CFS handling, documentation and destination terminal charges that a full container does not carry. So compare against FCL on the landed total, not the ocean line. The crossover is around 13 mยณ on most lanes.

Buyer's consolidation

The word also describes a single importer combining several suppliers' cargo into one full container at origin. That replaces several LCL bookings and entries with one container, one bill of lading and one customs entry. It is the usual next step for importers whose volume has outgrown per-shipment LCL but not yet reached a container per supplier.

The trade-offs

Consolidated cargo is handled more times and dwells at a CFS on both ends, so door-to-door transit runs longer than an equivalent full container, and a customs hold on any one consignment can slow the whole deconsolidation. Pack for it: shrink-wrapped, palletized and clearly marked cargo survives a CFS far better than loose cartons.

Shipping LCL with Airlift

Airlift consolidates LCL cargo regularly on its supported lanes. See consolidation schedules and CFS cut-offs and how to get an LCL quote. Note that the rate search returns published full-container rates (availability varies) and does not price LCL.

Related terms

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More shipping terms

Container Yard (CY)
The area of a port terminal or depot where full and empty containers are received, stored and delivered as sealed units.
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Customs Broker
A person or company licensed by CBP to classify goods, file import entries and pay duties for the importer.
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Delivered at Place (DAP)
Incoterms 2020 rule: the seller delivers to a named destination, ready for unloading, carrying cost and risk to that point; the buyer unloads, clears import and pays the duty.
Read definition

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