Is Consolidated Shipping from China Cheaper? We Break Down the Numbers

Abstract – Shipping from China to Europe or North America can be expensive, especially for small and medium‑sized importers who order in batches that are too small to fill an entire container. This long‑form guide demystifies consolidated shipping, often called groupage, by comparing it to traditional freight options (full container loads, less‑than‑container loads, air freight and express courier services). Drawing on industry data and recent research, the article provides numeric examples to show how consolidation reduces per‑unit costs, streamlines customs clearance, and cuts emissions. It also highlights the challenges and offers practical tips for European and North American businesses seeking to save money on China‑sourced products.

1 Introduction: The Cost Challenge of Global Shipping

The modern supply chain connects Chinese manufacturers with customers around the world. European retailers source clothing and electronics from Guangdong factories, North American e‑commerce sellers rely on Yiwu’s markets for household goods, and industrial buyers procure machine parts from Ningbo. However, shipping costs often eat into margins. Freight rates remain volatile following the pandemic; container shortages, surcharges and port congestion have pushed up ocean shipping costs, while air and express rates have also fluctuated.

Importers usually face a choice between full container load (FCL) shipments, where they hire an entire container, and less‑than‑container load (LCL) shipments, where they pay for a portion of container space. Many businesses cannot fill a whole 20‑foot or 40‑foot container, making LCL and air freight their default options. Yet LCL pricing is based on cubic metres and includes terminal handling, documentation and consolidation feessupplyia.com. Air freight charges by chargeable weight and quickly becomes expensive for anything heavier than a few kilogramstonlexing.com. Express courier services are fast but extremely costly for large consignmentstonlexing.com.

To lower logistics costs, many importers have turned to consolidated shipping. Also known as groupage, freight consolidation combines multiple small consignments from different shippers into one container or pallet. Because the consolidated shipment occupies more space, carriers offer bulk rates, reducing the cost per unit. Consolidation also streamlines paperwork: rather than handling separate customs entries for each supplier, brokers file one master entry for the entire load. Environmental and security benefits follow, as fewer individual shipments mean fewer vehicles on the road and less handling damage. Nevertheless, importers wonder whether consolidation truly offers cheaper rates compared with standard LCL or air freight. This guide breaks down the numbers and evaluates when consolidation makes sense.

2 Baseline: Standard Shipping Options and Their Costs

2.1 Full Container Load (FCL)

FCL shipments provide exclusive use of a container. Costs consist of base freight plus ancillary charges (port fees, documentation, fuel surcharges). According to shipping consultancy Supplyia, moving a 20‑foot container from China typically costs US$2,300–3,950 and a 40‑foot container costs US$3,500–5,500supplyia.com. Another logistics portal notes that the average price for a 20‑foot container to the United States ranges from US$1,500–4,000, while a 40‑foot container can cost US$4,000–5,000dantful.com. These rates fluctuate monthly; data for July–September 2025 show FCL costs between US$2,500 and US$3,200 for a 20‑foot container and US$4,000–5,000 for a 40‑foot containerdantful.com.

FCL has several advantages: transit times are shorter (15–30 days) because containers skip consolidation/deconsolidation hubssupplyia.com, handling risks are lower due to exclusive usesupplyia.com and per‑unit costs become economical if the container is at least 15–18 cubic metres (CBM) fullsupplyia.com. However, for smaller consignments FCL is wasteful because shippers pay for unused space.

2.2 Less‑Than‑Container Load (LCL)

When shipments are smaller than a container, forwarders offer LCL service. Rates are based on CBM or chargeable weight (whichever is higher). Typical LCL rates range between US$60 and US$105 per CBM or about US$1 per kilogramsupplyia.com. LCL also incurs origin and destination charges—handling, documentation and consolidation fees totalling US$100–300supplyia.com. Transit times are longer because cargo needs to be consolidated at origin, loaded with other consignments, and deconsolidated at destination; estimates are 20–40 dayssupplyia.com. Handling risks are higher due to more touch points and co‑loadingsupplyia.com. LCL suits shipments below around 15 CBM; if volumes exceed that threshold, FCL becomes more cost‑effectivesupplyia.com.

2.3 Air Freight

Air freight is the fastest mode; typical transit times are 3–7 daystonlexing.com. Rates vary depending on route, weight and current capacity; for shipments of 100–300 kg, air freight costs US$3.80–4.50 per kilogramtonlexing.com. Freight charges are calculated using chargeable weight, defined as the greater of actual weight and volumetric weight (length × width × height divided by a dimensional factor). Additional fees include fuel surcharges, security fees and customs clearance. Air freight is suitable for high‑value or time‑sensitive goods but is expensive for bulk cargo.

2.4 Express Courier Services

Express couriers like DHL, FedEx or UPS offer door‑to‑door service within 2–5 daystonlexing.com. However, their pricing is steep: small parcels under 30 kg cost US$25–80, and heavier consignments up to 30 kg cost US$100–200tonlexing.com. For shipments over 100 kg, couriers charge a per‑kilogram rate that often exceeds US$5 and add surcharges for remote delivery. While convenient, express services are rarely economical for large orders.

2.5 Door‑to‑Door (DDP) Services

Some forwarders offer Delivered Duty Paid (DDP) services that include freight, customs clearance, duties and final delivery. Typical DDP rates for LCL range from US$80–120 per CBM, while air DDP costs US$5.50–7.00 per kilogramtonlexing.com. DDP simplifies logistics for importers who lack import licences or want a single invoice. However, the all‑inclusive price may hide margins and is sensitive to duty rates.

3 What Is Consolidated Shipping?

Consolidated shipping (also called groupage or freight consolidation) is a logistics practice that combines multiple small shipments into a single container or truck. Instead of each shipper booking individual LCL space, a consolidator groups goods bound for similar destinations and negotiates a lower bulk freight rate. According to a freight guide, consolidated freight merges dispersed shipments into one larger load, offering cost savings and improved efficiencysupplierwiki.supplypike.com.

There are several forms of consolidation:

• LCL Consolidation: Traditional sea freight groupage where goods from multiple exporters are loaded into one container. A non‑vessel operating common carrier (NVOCC) or freight forwarder manages the consolidation and issues a master bill of lading.
• Air Freight Consolidation: Forwarders combine small air cargo loads and book them as one shipment, accessing airline rates that are 30–50 percent cheaper than individual air freight shipmentsdimerco.com.
• Truckload/Trailer Groupage: Overland carriers merge small consignments into one truck, particularly within Europe. The RXO groupage service notes that shipments share trailer space with other loads; customers pay only for the space used, resulting in cost savings and more sustainable full truck loadseu.rxo.com.
• Multimodal Consolidation: Some providers offer door‑to‑door consolidation across sea, air, rail and truck, handling customs and last‑mile delivery as a single package.

Consolidation differs from standard LCL in that the forwarder owns or operates the container space. Instead of waiting to fill a container, consolidators schedule regular departures and maintain fixed weekly service, offering greater reliabilitydachser.com. Because the forwarder controls the container, they can deliver to a local branch near the consignee, reducing transshipments and emissionsdachser.com. Consolidation is particularly suitable for businesses with regular shipments that cannot fill a container each week; the shipments are large enough to benefit from groupage but too small for FCLdachser.com.

4 How Consolidated Shipping Works

The freight consolidation process follows these stepsasstra.com:

1. Cargo collection: Suppliers ship goods to a consolidation centre in China. Consolidators schedule pickups or receive cargo at their warehouse.
2. Sorting and packaging: At the warehouse, goods are inspected, sorted by destination and sometimes repackaged. Packaging may be optimised using protective yet lightweight materials, which reduces dimensional weight chargesgofreighter.com. Shippers should design packaging for protection, use lighter materials and adopt technologies like right‑size packaging to lower freight costs.
3. Load planning: The consolidator plans how to load each container or pallet to maximise utilisation and comply with weight restrictions. Sophisticated software groups goods with similar destinations and transit times.
4. Documentation: The forwarder prepares a master commercial invoice and master packing list covering all goods in the consolidated shipment, along with a house bill of lading for each customer. They ensure accurate Harmonised System (HS) codes and values to avoid customs delays.
5. Dispatch: The container or air pallet is delivered to the port or airport. Because the forwarder controls the load, it may follow a dedicated route with fewer stops, reducing the risk of delays.
6. Customs clearance and final distribution: At destination, the container is deconsolidated. A customs broker files one entry for the entire load. After clearance, goods are re‑labelled and delivered to final consignees via truck or courier.

Thanks to regular schedules, consolidators often provide weekly departures, which is faster and more predictable than waiting for enough LCL cargo to fill a containerdachser.com.

5 Breaking Down the Numbers: Individual vs Consolidated Shipping

To determine whether consolidated shipping is cheaper, we compare the costs of shipping individually versus consolidating. We examine three typical scenarios: a 50 kilogram air shipment, a 5 CBM sea shipment, and a 200 kilogram mixed goods shipment using air and sea consolidation. All values are approximate and based on published rates; actual prices vary by route, season and provider.

5.1 Scenario 1 – Air Freight: 50 kg of electronics

A small European reseller purchases phone accessories from several Chinese suppliers, each shipping 10 kg. Shipping separately via standard air freight costs US$3.80–4.50 per kgtonlexing.com. For 50 kg, the total freight charge (50 kg × US$4.50) is US$225. In addition, the consignor pays a minimum charge (often 45 kg equivalent) and fixed handling fees. Express courier rates are higher, ranging from US$25–80 per parceltonlexing.com; sending five parcels could cost up to US$400.

With air freight consolidation, the forwarder combines the 50 kg with other shippers’ cargo and books at a discounted bulk rate. Consolidated air cargo can be 30–50 percent cheaper than individual shipmentsdimerco.com. Assuming a 35 percent discount, the rate drops to US$2.93 per kg (US$4.50 × 0.65). The total freight becomes US$147 (50 kg × US$2.93), saving US$78 compared with individual air freight. Handling and documentation fees are shared among all shippers. When factoring in customs clearance and last‑mile delivery, consolidated air shipping can reduce overall cost by 30–50 percent.

5.2 Scenario 2 – Sea Freight: 5 CBM of household goods

An American importer orders furniture from three Chinese manufacturers totalling 5 CBM. Shipping this volume individually via LCL costs about US$80 per CBM (mid‑range of the US$60–105 band) plus origin and destination charges of US$200supplyia.com. The freight portion equals US$400 (5 × US$80), and combined charges could add another US$300. Total cost: ~US$700. Transit time is 20–40 dayssupplyia.com.

Opting for FCL is not economical because a 20‑foot container (33 CBM capacity) costs US$2,500–3,200dantful.com, far higher than the value of the goods. Instead, the importer uses a sea consolidation service. The consolidator charges US$50 per CBM for groupage (lower than typical LCL due to bulk contracts). The freight cost becomes US$250 (5 × US$50). Even after adding US$200 for shared origin/destination charges, the bill is US$450, saving ~US$250 (35 percent) compared with regular LCL. Because the consolidator runs weekly departures and unloads at a branch near the consignee, transit time may shorten to the lower end of the range and risk of damage decreasesdachser.com.

5.3 Scenario 3 – Mixed Shipment: 200 kg of consumer goods

A Canadian online store buys assorted small items (kitchenware, toys, electronics) from six suppliers. Combined volume is 200 kg (approximately 2 CBM). Shipping each supplier’s order separately via air would cost US$4.50 per kgtonlexing.com, or US$900 total (200 × 4.50). Using LCL individually would cost about US$150 per CBM (US$100 base plus handling fees), resulting in around US$300 for each consignment and US$1,800 for six shipments.

With sea–air consolidation, the forwarder combines the 200 kg into one shipment and sends it by rail or sea to the forwarder’s European hub (e.g., Duisburg or Rotterdam), then uses truck delivery. The consolidated rate might be US$3.00 per kg (a 33 percent reduction from standard air rates). Total freight is US$600; after adding shared documentation and last‑mile charges (say US$150), the total shipping cost is US$750. Compared with air (US$900) or multiple LCL shipments (US$1,800), consolidated shipping saves 17–60 percent. If time allows, shipping via sea consolidation could cut the freight to US$200 (US$50 × 4 CBM), further reducing costs.

5.4 Graphical Comparison

To visualise the cost differences, the bar chart in Figure 1 illustrates the estimated shipping cost for the above scenarios. It shows that consolidation consistently reduces costs compared with separate shipments. In the case of sea freight, groupage can cut costs by 35 percent or more. The air consolidation example shows savings of roughly 30 percent. Sea‑air mixing for mixed shipments yields intermediate savings. These numbers demonstrate that consolidated shipping is often cheaper, especially when shipments are too small to fill a container but large enough to benefit from economies of scale.

6 Why Consolidated Shipping Saves Money

6.1 Bulk Rates and Space Utilisation

The primary reason consolidation lowers costs is economies of scale. By filling containers and trailers to capacity, carriers can charge a lower rate per CBM or kilogram. RXO’s groupage service notes that shippers pay only for the space used and benefit from full trailer utilisation, which lowers the cost of transport while reducing the carbon footprinteu.rxo.com. Similarly, E&C Logistics explains that groupage combines cargo from different shippers in a single container or truck, allowing costs to be shared and saving moneythegroupage.com.

In air freight, consolidators negotiate better rates with airlines. Dimerco reports that consolidated air freight loads can be moved on cargo or passenger planes, offering flexibility and cost efficiencydimerco.com. Because the forwarder buys space in bulk, they pass on 30–50 percent savings to shippersdimerco.com.

6.2 Reduced Handling and Administrative Fees

Consolidated shipments typically require one customs entry, one set of documentation and one set of handling fees. In contrast, multiple separate shipments multiply documentation charges, customs broker fees and port handling costs. According to SupplierWiki, consolidation is less expensive than LTL shipping because logistics companies do not have to wait to fill a container and can avoid excess handling chargessupplierwiki.supplypike.com. Borderless360 notes that consolidation reduces shipping costs, lowers handling fees and minimises the risk of damage or lossborderless360.com.

6.3 Lower Insurance and Risk Costs

Insurance premiums are usually calculated as a percentage of the cargo value. Since consolidated shipments have fewer individual entries, insurance providers may offer slightly better rates. More importantly, consolidating cargo reduces handling points and transshipments, reducing the chance of damage or theft. E&C Logistics points out that consolidated shipments are more secure; goods moved together are less likely to be targeted by thievesthegroupage.com. Reduced risk translates into lower claims and avoidance of premium increases.

6.4 Environmental Savings and Brand Reputation

Combining cargo into full containers or trucks improves load factor—a key metric in transport sustainability. Borderless360 reports that freight consolidation can cut monetary emission costs by 17 percentborderless360.com. RXO emphasises that fuller trucks mean fewer trips and less CO₂ emissionseu.rxo.com. For brands selling in Europe and North America, a lower carbon footprint enhances reputation and meets the increasing demands of consumers and regulators for sustainable supply chains.

6.5 Time Savings and Predictability

Consolidators often run weekly or bi‑weekly servicesdachser.com. This regularity means shippers know exactly when their cargo will depart and arrive, reducing warehousing costs and enabling just‑in‑time inventory management. Consolidation eliminates the need to wait until a full container is available and reduces the risk of last‑minute rollovers or capacity shortages.

6.6 Better Carrier Relationships and Service Quality

Freight forwarders who specialise in consolidation build strong relationships with carriers and ports. SupplierWiki notes that consolidation fosters better carrier relationships and time savingssupplierwiki.supplypike.com. RXO adds that groupage shipments receive improved service quality and faster transit because the forwarder prioritises consistent serviceeu.rxo.com. These relationships benefit shippers through preferential space allocations, reduced risk of container roll‑offs and improved problem resolution.

7 Potential Challenges of Consolidation

While consolidation offers many benefits, importers should be aware of potential challenges:

• Coordination complexity: As AsstrA observes, freight consolidation requires coordinating shipments from different suppliers and aligning schedulesasstra.com. Late deliveries from one supplier can delay the entire shipment.
• Storage constraints: Consolidation hubs need space to store cargo until enough volume accumulates. During peak seasons, warehouses can become congested, potentially delaying shipmentsasstra.com.
• Regulatory compliance: Different goods may require separate certificates or licences, and combining them may complicate customs declarationsasstra.com. Forwarders must ensure that all HS codes and documentation are accurate.
• Compatibility issues: Goods must be compatible in terms of packing, stacking and handling. For example, heavy machinery cannot be stacked on delicate textiles.
• Dependency on forwarders: Shippers rely heavily on the consolidator’s network, reputation and efficiency. Poorly managed consolidators may cut corners, causing delays or damage.
• Possible longer transit times: In some cases, consolidated shipments may take slightly longer because the forwarder must collect cargo from different suppliers. However, regular groupage schedules often offset this delay.

Despite these issues, most logistics practitioners agree that the benefits of consolidation outweigh the drawbacksgofreighter.com.

8 Customs and Compliance Considerations

Consolidated shipments require careful attention to customs regulations. Importers in Europe and North America should follow these guidelines:

8.1 Documentation and HS Codes

Ensure that each product’s HS code is correctly classified. Consolidated shipments often contain varied commodities; misclassification on the master invoice can cause customs delays or penalties. Use accurate descriptions and values for each item. When in doubt, consult a customs broker.

8.2 Single Customs Entry vs. Multiple Entries

A key advantage of consolidation is that customs brokers can file one entry for the entire shipment. This reduces brokerage fees and processing time. However, importers must coordinate closely with the broker to ensure that duty rates and VAT are applied correctly for each item. In the European Union, importers need an EORI number and, if selling to consumers, may utilise the Import One‑Stop Shop (IOSS) regime for low‑value goods. In the United States, shipments under US$800 may qualify for Section 321 de minimis exemption, but consolidated shipments are usually treated as formal entries and require full declarations.

8.3 Compliance with Safety and Labelling

Products such as electronics, toys, medical devices and cosmetics require compliance with EU or US safety standards (e.g., CE marking, FDA registration). Consolidated shipments must meet these requirements collectively. Ensure that packaging includes necessary labelling, and that testing certificates are available to customs.

8.4 Working with a Licensed Customs Broker

Licensed brokers understand local regulations and can guide importers through duty calculations, anti‑dumping measures and trade agreements. They coordinate with the consolidator to ensure that documents are submitted on time. Some forwarders provide in‑house brokerage; others partner with specialist brokers. Choose providers experienced in handling consolidated shipments into your destination market.

9 Tips to Reduce Shipping Costs through Consolidation

The following strategies help European and North American importers maximise savings:

1. Plan ahead and batch orders: Combine orders from different suppliers or multiple purchase orders into one consolidated shipment. Coordinate your buying cycles so goods can be shipped together.
2. Optimise packaging: Design boxes to minimise dimensional weight, use lighter materials and adopt right‑size packaging. These steps reduce chargeable weight and freight costsgofreighter.com.
3. Negotiate with forwarders: Leverage your shipment volume to negotiate better rates. Research market rates, ask for volume discounts, maintain strong relationships and request flexible termsgofreighter.com. Obtain quotations from multiple forwarders to create competitiongofreighter.com.
4. Use technology and analytics: Employ freight management platforms to track orders, predict demand and optimise consolidation schedules. Some forwarders provide dashboards for monitoring shipment status and cost analysis.
5. Consider alternative modes: Rail freight from China to Europe offers a cost‑effective and reliable middle ground between sea and air. It is slower than air but faster than ocean and has gained popularity for 10–15 CBM shipmentsgofreighter.com.
6. Work with experienced consolidators: Partner with forwarders who specialise in your trade lanes. AsstrA recommends choosing providers with robust networks, digital solutions, and the ability to manage just‑in‑time deliveriesasstra.com.
7. Review Incoterms and responsibilities: Decide whether to use FOB, CIF, DAP or DDP terms. For novice importers, DDP may offer simplicity, but consolidators can also arrange DDU (duties unpaid) shipments where you handle customs.
8. Monitor seasonal trends: Freight rates fluctuate with seasonality. Peak times (September–October for holiday goods and before Chinese New Year) drive up costs. Ship during lower‑demand months and avoid last‑minute bookings.

10 Case Studies

10.1 European Boutique: Fashion Accessories

A French boutique sources jewellery, scarves and bags from ten small workshops in Guangzhou. Each workshop ships two cartons weighing 8 kg (total 16 kg per supplier). Sending ten separate air parcels (16 kg each) via express would cost approximately €40 per parcel (around US$45), totalling US$450. Instead, the boutique consolidates the 160 kg load and books air freight consolidation at US$3.00 per kg, paying US$480 including handling, plus shared customs fees of €150. The total is roughly US$630. While this is higher than the courier cost, the boutique gains faster customs clearance, better tracking and fewer lost parcels. Had they shipped individually via air freight, the cost would be US$720 (160 kg × US$4.50). Consolidation saves ~US$90 and simplifies logistics.

For larger orders, sea consolidation becomes more advantageous. Suppose the boutique orders 5 CBM of goods (cubic packaging of scarves). LCL cost at €80 per CBM plus charges is €700; the consolidator offers €50 per CBM plus charges, totalling €450. Savings: ~€250. The boutique uses this saving to invest in marketing.

10.2 North American Electronics Retailer: Gadgets & Accessories

A Canadian electronics retailer orders cables, chargers and Bluetooth speakers from four suppliers. Combined volume is 10 CBM and 1,200 kg. Shipping each order separately via LCL costs about US$1,200 per supplier (10 CBM at US$80/CBM plus handling), totalling US$4,800. If the retailer opts for FCL, a 20‑foot container priced at US$2,800 would suffice, but the retailer has only half the container filled; unused space leads to wasted cost.

Instead, the retailer works with a groupage forwarder. The consolidator charges US$55 per CBM and uses a 20‑foot container shared with another client. The retailer pays US$550 for freight (10 CBM × US$55) plus US$300 for shared handling, totalling US$850. The savings compared with separate LCL shipments (US$4,800) or a half‑empty FCL (US$2,800) are enormous. Transit time is roughly the same (about 25 days). This example shows how consolidation can be 65–80 percent cheaper than shipping separately and roughly 70 percent cheaper than paying for a half‑empty container.

11 Selecting a Consolidated Shipping Partner

Choosing the right consolidator or freight forwarder is critical for cost savings and reliability. Consider the following factors:

1. Experience and network: Look for forwarders with long experience handling China‑to‑Europe/US lanes and established relationships with carriers. They should offer weekly or bi‑weekly service and have local branches near major ports to reduce transshipmentsdachser.com.
2. Transparent pricing: Avoid providers with hidden surcharges. Request detailed quotations showing freight, fuel, port charges, documentation and last‑mile costs. Ask whether insurance and customs brokerage are included.
3. Digital tools and visibility: Choose partners that offer online dashboards for tracking shipments, managing documentation and communicating with brokers. Real‑time visibility reduces surprises and helps you make timely decisions.
4. Customs expertise: Ensure the forwarder has licensed customs brokers who understand EU and US regulations. Ask about their experience with IOSS, VAT declarations and Section 321 (de minimis) for North American shipments.
5. Insurance and risk management: Confirm that your cargo will be insured and that the consolidator has procedures for handling damage claims. Reputable forwarders use proper packing, moisture protection and palletisation to minimise risk.
6. Sustainability commitments: If environmental impact is important to your brand, ask about carbon‑offset programmes, route optimisation and green initiatives. Consolidation already reduces emissions; some providers go further by investing in eco‑friendly fuels or tree‑planting schemes.
7. Customer service and responsiveness: Evaluate how quickly the forwarder responds to inquiries and whether they provide dedicated account managers. Good communication ensures that issues are resolved before they impact your supply chain.

12 Conclusion: Consolidation as a Path to Lower Costs

For European and North American importers sourcing from China, consolidated shipping offers a compelling alternative to traditional freight methods. By combining multiple consignments into one container or air pallet, businesses leverage bulk rates and shared fees, reducing shipping expenses by 30–65 percent in many cases. Consolidation also delivers ancillary benefits: faster and more predictable departures, improved security, lower environmental impact and simplified customs clearance.

However, consolidation is not a one‑size‑fits‑all solution. It requires careful planning, coordination among suppliers and partnership with experienced forwarders. Importers must weigh volume, timing, product characteristics and regulatory requirements to determine the best approach. In some scenarios—particularly for extremely urgent or very small parcels—air express may still be appropriate despite the higher cost. For shipments over 15 CBM, FCL may be more economical. Nevertheless, for the vast middle ground of small‑to‑medium shipments, consolidation frequently proves to be the cheapest shipping option from China to Europe or North America.