What does the term "consolidation" mean in customs practice?

The term "consolidation" in customs practice refers to the process of combining multiple shipments into one for cost or administrative efficiency. This practice allows for a reduction in shipping costs, streamlining of documentation, and optimization of logistics. By merging several smaller shipments, customs brokers can manage the process more effectively, handle paperwork in bulk, and often negotiate better freight rates with carriers.

This practice is especially beneficial in international trade, where numerous small packages from different suppliers might be shipped to a single destination. Consolidation not only aids in saving time and resources but enhances overall efficiency in the supply chain, making goods more readily available to the end-user. Understanding consolidation is key to effective customs brokerage, as it impacts both the financial and operational aspects of handling shipments.