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In today’s global competitive environment, small businesses face numerous challenges. One of these is effective logistics. Often, small enterprises encounter the problem that shipping goods in small volumes is too expensive, which seriously affects the final product price and market competitiveness. Our logistics company, Dragon Logistics, offers the most efficient solution — consolidated shipping (LCL, less than container load). This allows transporting goods together with shipments from other companies within one container, truck, or other transport vehicle.
What is consolidated shipping?
Cargo consolidation is the process of gathering several small shipments from different senders into a single transport space. The goods are combined at a special warehouse, where they are labeled, sorted, and prepared for transportation. Then the entire shipment is sent along the main route and distributed among recipients upon arrival.
This shipping format is widely used in international logistics, especially for sea transport (partial container loading), truck shipments across Europe, and air and rail routes from Asia.
Main advantages for small businesses:
- Cost savings on delivery — the primary benefit. Renting a full container or truck is economically impractical for small businesses. With consolidation, payment is proportional to the volume or weight of the cargo, significantly reducing expenses. For example, shipping 2 m³ of goods from China by sea via LCL can be 3–4 times cheaper than renting a full container.
- Flexibility in deliveries — consolidated shipping allows regular delivery of small batches without accumulating large warehouse stocks. This is crucial for businesses with limited budgets, seasonal sales, or online stores operating on demand.
- Reduced risk of overstocking — frequent small shipments mean the company doesn’t have to keep large inventory, lowering the risk of product loss due to spoilage, obsolescence, or changing demand.
- Access to international markets — small businesses can easily enter global markets without large export or import volumes. Consolidation enables buying goods abroad or shipping products internationally without excessive logistics costs.
Another advantage is professional support and process simplification. Most companies providing consolidated shipping services also handle documentation (invoices, packing lists, certificates), customs clearance, warehousing, insurance, and cargo tracking. This is especially important for small businesses without their own logistics department.
How does it work and what to know?
The shipping process involves several stages. First, the supplier delivers goods to the consolidation warehouse. Pickup from the client’s production or warehouse is also possible. The cargo is combined with other shipments following similar routes. Warehouse staff check packaging, label the cargo, and prepare documents. Then the route is formed: sea container, air freight, truck, or railcar. The shipment heads to the destination country, where it is distributed among recipients. Delivery can be made to the customs terminal or directly to the client’s warehouse/office with a door-to-door service.
Important details to consider:
- delivery time — due to consolidation, shipping may take slightly longer than direct full-load delivery;
- packaging quality — reliable packaging is necessary because the cargo will be alongside other shipments and may be handled more frequently;
- volume and weight — pricing is usually based on either volume (m³) or weight (kg), whichever is greater;
- documentation — careful customs clearance is critical since errors in declarations can delay the entire container.
Reliability of the logistics partner is key. Choose experienced companies with good reviews and transparent operations.
Consolidated shipping offers small businesses a real chance to optimize costs, scale, and test new markets without excessive financial risks. This delivery format makes logistics accessible, flexible, and understandable even for entrepreneurs just starting to work with international partners.
In a world where speed and efficiency are crucial, consolidation is the key to competitive advantages for small businesses, and our company, Dragon Logistics, a true professional in this field, will be your reliable partner.