What is consolidation of cargo? or What is LCL - Less Container Load Cargo?

• What is consolidation of cargo?
• What is LCL cargo less container load cargo?
• How does a Consolidator function in an international freight forwarding industry?
• Who is a Consolidator in Export and Import cargo movement industry?

The term Consolidation is common in a shipping and freight forwarding industry.   

"Consolidator is a person or company who consolidates different consignments for different importers in to one consignment who delivers each cargo each consignee as per the agreed terms and conditions."

How does a Consolidator work in shipping? 

Let me explain the functions of a freight forwarder with an example:

You (exporter) situated in Colombo, Sri Lanka have a shipment to be exported to your overseas buyer in Antwerp by sea – say about 4cbm of 1200kgs. As per your costing shipping in a full container load is not worth as the total quantity and volume is too less to load in to a container. This is called LCL shipment, means Less Container Cargo shipment. Here, you contact a freight forwarder or consolidator to accept your shipments to move to final destination at Antwerp. The freight forwarder accepts your cargo. The said freight forwarder accepts the LCL cargo from other exporters also to make his container full. Other exporters’ goods to other destinations also may have in the container. So your cargo with other exporters’ cargo is loaded in to a container and moves to the transshipment port. The freight forwarder (carrier of your cargo) will have their associates working in the said transshipment port say – Cochin, India. There may have cargo arrived from other What is consolidation of cargo What is LCL cargo less container load cargo 2 ports at Cochin port to be moved to Antwerp also. They de-stuff the cargo at Cochin port and, and arrange to load all cargo to Antwerp in one container. Here, in Cochin transshipment port, there may have other cargo arrived from various locations to ship to other destinations also – say to Dubai, Hong Kong, Cape Town etc. So all cargo meant for Dubai which have been arrived from other locations to Cochin loaded in to one container and move to Dubai, The LCL goods arrived from various locations meant for Hong Kong are loaded in to one container and arrange to move to Hong Kong, The cargo to be shipped out to Cape Town is loaded to one container. All the said procedures are with the necessary permissions and under the supervision of customs officials of respective country. This process of clubbing shipments together is called ‘consolidation of cargo’.

Once after arrival of cargo at final destination, the associate office (or own office) of freight forwarder who accepted your cargo at first port of loading delivers cargo to final consignee after completion of necessary formalities as usual.