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Freight consolidation refers to the grouping of multiple smaller shipments within a similar geographic region together to create a larger, often faster and more cost-effective shipment. Typically, the shipments that are grouped together were heading in the same direction to begin with before being consolidated. As an example, if two distributors have smaller orders going to the same big-box store, the separate shipments may be consolidated to save money and ensure a full truckload of cargo.