Freight glossaryFreightWarehousingLTL
Freight Consolidation
Definition
Freight consolidation is combining several smaller shipments into one larger load, such as several LTL shipments into one truckload, so they move together.
What it means
FedEx Freight's rules tariff defines consolidation as "the combining of two or more LTL shipments at one point into a composite truckload or other unit of volume for transportation to another point," and the reverse, distribution, as "the segregation and delivery of property from a composite truckload."[1]
Consolidation is also built into the legal definition of a surface freight forwarder, which "assembles and consolidates" shipments and performs "break-bulk and distribution operations."[2] In ocean freight, less-than-container-load shipments from several shippers are consolidated into one container.[3]
Example
Five suppliers each ship 4 to 6 pallets to a warehouse in the same week. The warehouse holds them and loads all 26 pallets onto one 53-ft trailer to the customer's DC, instead of five separate LTL deliveries.
Related
Related terms
- Less-Than-TruckloadLess-than-truckload (LTL) is freight shipping in which several shippers' shipments share one trailer, each...Glossary
- Full TruckloadFull truckload (FTL) is a shipment that has a trailer to itself, usually moving directly from pickup to...Glossary
- Cross-DockingCross-docking is moving freight from inbound trucks or containers straight onto outbound trucks at a dock...Glossary
- Break BulkBreak bulk has two meanings in freight: cargo that is not in containers and is handled piece by piece, and...Glossary
- Freight ForwarderA freight forwarder arranges the transportation of other people's shipments, often consolidating them; U.S....Glossary
- Container Freight StationA container freight station (CFS) is a facility where cargo is loaded into or unloaded from containers...Glossary
Related questions
- FCL vs. LCL: Which Should You Choose?Choose FCL (full container load) when you have enough cargo to justify a whole container, want it sealed from...Answer
- LTL vs. FTL: Which Should You Use?Use LTL when your freight fills only part of a trailer and can be handled at terminals along the way; you pay...Answer
- What Are the Main Types of Cross-Docking?Cross-docking is usually classified by when each unit's destination is decided: in pre-distribution...Answer
Sources
- FedEx Freight, “FedEx Freight 100-Y Rules Tariff (effective January 5, 2026),” Carrier rules tariff. Published January 5, 2026. Accessed September 30, 2026.
- Legal Information Institute, Cornell Law School, “49 U.S. Code § 13102, Definitions,” Federal statute. Accessed September 30, 2026.
- Maersk, “FCL vs LCL shipping: How to choose the right one,” Carrier publication. Published May 8, 2025. Accessed September 30, 2026.
General operational information, not legal, customs or regulatory advice. Rules and rates change; confirm current requirements with the agency, carrier or contract that governs your shipment.