Consolidation Savings Planner
Calculate freight savings from consolidating partial-fill shipments into fuller loads, using volume-conserving math, not a naive utilization-gap estimate.
Consolidation target
Resources
How this works
Total monthly volume shipped, in container-equivalents, is shipment count times current utilization. That same volume, moved at a target utilization instead, needs volume divided by the target. The difference between the current shipment count and that number is the shipments actually eliminated.
Key terms
- Container utilization: the current average fraction of a container's capacity used per shipment.
- Consolidation threshold: the target fill level once shipments are combined.
Assumptions
- Volume shipped is conserved, no volume growth or shrinkage from consolidating
Limitations
- One lane and one freight rate, not a multi-lane network optimization
Sources
Standard freight consolidation / load-fill optimization practice.
Worked example
At 45.5% average utilization across 20 shipments/month, consolidating to an 85% target volume-conserving math needs 11 shipments, saving 9, worth $10,800/month at $1,200/shipment. A naive gap-subtraction estimate would understate this by a full shipment.
Common use cases
- Justifying a load-consolidation program with real freight savings
- Checking whether current shipment patterns leave savings on the table
- Setting a fill-rate target for a consolidation initiative