A consolidation fee is a logistics charge for combining multiple smaller shipments, orders, or cargo lots into one larger shipment for transport. Freight forwarders, warehouses, or consolidation facilities may charge this fee to cover receiving, sorting, documentation, palletising, container loading, inventory checks, and coordination. Consolidation can reduce freight costs by improving space utilisation, especially in LCL, ecommerce, retail, and international shipping, but the fee should be included when calculating total landed cost.
- Assessed per CBM, per revenue ton, or as a flat fee per shipment
- Separate from the CFS fee, though both apply to LCL cargo
- May be bundled into an all-in LCL rate or itemized separately
Ask your forwarder whether the quoted LCL rate includes the consolidation fee or whether it appears as a separate charge.
Related terms: Co-Loader, NVOCC, Origin Charge.
