Cargo consolidation involves combining several smaller shipments into one larger shipment. This practice is generally used to optimize space and reduce costs, as smaller shipments are often more expensive on a per-unit basis compared to larger ones.

Consolidation can occur at various stages of the supply chain, including at the manufacturing plant, warehouse, or port. Freight forwarders and consolidators are crucial in this process, as they coordinate the movement of goods from multiple suppliers or manufacturers.

The advantages of cargo consolidation include lower transportation costs, increased efficiency, and enhanced supply chain visibility. However, consolidation also carries the risk of damage or loss of goods, as multiple shipments are combined into one container or vehicle. Therefore, it is essential to work with reputable and experienced logistics providers when undertaking cargo consolidation.