With sudden fluctuations in U.S. tariffs, international shipping costs are skyrocketing.
For many American businesses — from small eCommerce shops to growing importers — freight bills are quickly eating into profit margins and squeezing growth.
But here’s the good news: you don’t have to keep paying premium rates for half-empty containers or unnecessary fees.
The smarter solution is freight consolidation — one of the most effective (and often overlooked) ways to cut shipping costs. And this can be done only by a reliable freight forwarder.
This can reduce your shipping costs by as much as 50%, while still ensuring your goods move safely and on time.
In this post, we’ll walk you through how freight consolidation works, why it’s becoming a go-to strategy for U.S. businesses in 2025, and practical steps to start saving on your next international shipment.
What Is Freight Consolidation?
Think of freight consolidation like carpooling for cargo. Instead of paying for a whole car to drive you to work, you split the ride with a few other people heading in the same direction. Everyone gets where they need to go — but at a fraction of the cost.
Freight consolidation works the same way. If your shipment isn’t big enough to fill an entire container, a freight forwarder like AIR7SEAS will combine it with other shipments going to the same destination.
This is often called LCL (Less than Container Load) for ocean freight or consolidated air freight for air shipments.
Here’s the key benefit:
- Instead of paying for the whole container (even if it’s half empty), you only pay for the space your goods actually take up.
- The forwarder handles the heavy lifting — grouping shipments, managing customs, and coordinating the journey.
The result? Your business gets access to global shipping lanes at bulk rates — without needing massive order volumes.
Why Shipping Small Volumes Costs You More Than You Think
On the surface, it might feel cheaper to just book a small shipment when you don’t have enough goods to fill an entire container. But here’s the catch: carriers charge you for the container space, not just your cargo.
That means if your shipment only fills 40% of a 20-foot container, you’re still paying for the other 60% of empty space.
The same goes for air freight — you often pay based on minimum weight charges, even if your goods don’t come close to that threshold.
Let’s look at a quick example:
- A 20-foot container from Los Angeles to Shanghai costs around $2,000.
- If your shipment only fills half of that container, you’re essentially paying $1,000 for air.
- With freight consolidation, your cargo can be grouped with other businesses’ goods, cutting your cost to about $1,000 total — a 50% savings without changing the size of your shipment.
This is why so many small and mid-sized businesses struggle with international shipping: the system favors high-volume shippers.
Freight consolidation levels the playing field by giving you access to the same cost efficiencies that big companies enjoy.
How Freight Consolidation Actually Works (Step by Step)
Freight consolidation may sound complex, but the process is surprisingly straightforward when you’re working with a good freight forwarder. Here’s how it typically works:
1. You Book Your Shipment
You tell your freight forwarder what you’re shipping, how much space it takes, and where it’s headed.
2. The Forwarder Collects Multiple Shipments
Your forwarder groups your cargo with other shipments going to the same port or airport. Think of it like matching riders for a carpool — everyone chips in for the ride.
3. Shipments Are Combined at a Warehouse
All goods are brought to a consolidation warehouse. Here, the forwarder packs shipments together into a shared container (for ocean freight) or pallet (for air freight).
4. The Cargo Moves as One Large Shipment
Because it’s now a “full” load, the shipment qualifies for lower bulk rates that are normally reserved for high-volume shippers.
5. Deconsolidation at Destination
Once the shipment reaches its destination port, the forwarder unpacks and separates the goods at a deconsolidation warehouse. Each shipper’s cargo is cleared through customs and delivered to its final address.
👉 The beauty of this system is that you only pay for the space or weight you actually use, while still benefiting from lower negotiated rates.
The Hidden Savings of Freight Consolidation (Beyond Just Lower Rates)
When most businesses think about freight consolidation, they focus on the obvious win: paying less for container space.
But the truth is, consolidation unlocks several extra layers of savings that can add up quickly.
Easier Multi-Supplier Coordination
- Businesses that source from multiple suppliers (e.g., textiles from India, electronics from China) can consolidate shipments into one container instead of managing multiple deliveries.
- This simplifies paperwork, reduces inbound logistics costs, and keeps your supply chain cleaner.
Better Cash Flow Management
- Instead of tying up capital in bulk orders just to fill a container, you can ship smaller loads more frequently.
- This means less inventory sitting in warehouses and more flexibility in cash flow.
Lower Customs Clearance Fees
- Every shipment that enters the U.S. (or any country) requires customs paperwork and clearance. If you ship multiple small loads separately, you pay those fees over and over again.
- With consolidation, multiple shipments are bundled together, which often means fewer customs entries and lower overall clearance costs.
Automated Customs Pre-Clearance
- Some freight forwarders now integrate digital customs filing directly into the consolidation process.
- This means shipments can be pre-cleared while in transit, speeding up final delivery.
Reduced Cargo Insurance Costs
- Insurance is usually priced as a percentage of the shipment value or size. By consolidating, you share insurance coverage under a larger, more cost-efficient policy — which typically works out cheaper than insuring multiple tiny shipments individually.
Shared Handling and Storage Costs
- Ports and warehouses charge for unloading, storage, and handling. When you consolidate, those costs are spread across multiple shippers instead of falling squarely on your shoulders.
Avoiding Demurrage and Detention Fees
- One of the most painful hidden costs in shipping is container demurrage (when your goods sit at port too long) or detention fees (when you hold on to containers past the free period).
- With consolidation, the forwarder manages the container, timing, and paperwork — reducing the risk of racking up these charges.
Temperature-Controlled Consolidation
- If you’re shipping perishable or sensitive products, some providers now offer shared cold-chain consolidation, which lets smaller businesses access specialized containers without paying for a full unit.
Flexible Deconsolidation Points
- Instead of unloading all shipments at a single port, some networks allow multiple deconsolidation hubs.
- For example, your goods might be unloaded in Houston while others continue on to New York — saving you inland trucking costs.
Seasonal Flexibility
- If you sell products with seasonal demand spikes (like fashion, toys, or holiday goods), consolidation lets you scale shipments up and down affordably.
- No need to over-commit to full containers during slow seasons.
Risk Diversification
- Spreading your cargo across shared consolidated shipments can reduce risk compared to putting everything in one full container.
- If one route is delayed, only part of your cargo may be affected.
Access to Premium Trade Lanes
- Smaller shippers often get locked out of prime routes or faster carriers because they can’t hit volume thresholds.
- Through consolidation, you piggyback on forwarders’ contracts and gain access to better routes, faster transit times, and priority handling.
Improved Sustainability Branding
- Sharing space in a container means fewer half-empty boxes moving across oceans.
- Businesses can market their shipping strategy as eco-friendly, appealing to sustainability-conscious customers.
These niche advantages make freight consolidation not just a cost-cutting hack, but also a strategic growth tool for businesses that need flexibility, market reach, and smarter cash flow.
Final Thoughts
International shipping costs aren’t going down anytime soon. With tariffs fluctuating, fuel surcharges climbing, and global supply chains under constant pressure, businesses need smarter ways to stay competitive.
Whether you’re a small eCommerce seller, a growing importer, or a seasonal business, consolidation gives you the same cost advantages as big-volume shippers — without the headaches.
So the next time you’re planning an international shipment, ask yourself: Do I really need to pay for empty space? Or is it time to let an international freight forwarder consolidate your cargo and cut those costs down to size?
👉 Ready to save big on your next shipment?
Talk to a trusted international freight forwarder today and discover how freight consolidation can transform the way you move goods across borders.