INTL704-Mod-12-ActivityLoadPlanningandConsolidation4.docx

INTL 704 CENTENNIAL COLLEGE Global Logistics

Module 12: Activity: Load Planning and Consolidation

In this activity you determine how many and what size containers are needed with cargo that is not uniform for the best consolidation.

Consolidation is the so-called “bread and butter” of freight forwarders’ revenue.

Essentially, the forwarder will combine freight from 2 or more of his customers, load the cargo into a container, and ship to their office or agent at destination. The destination agent will de-consolidate the freight and move the goods to the respective consignees.

You have to determine what size and how many containers you need. In consolidations, the cargo is not uniform. One customer might have loose cartons, while another might have all pallets. This is when stowage becomes tricky. There is no one magical equation to solve this. You should try to visualize the freight and how it might piece together. Making a drawing always helps.

Estimating container size is the best way to start and it will “point you in the right direction.” When you have estimated what the container size requirements are, you then determine how all the cargo will be loaded, and if it indeed fits your estimate.

There are different documents required when “putting together a consol.” You will require a master bill of lading for the container move, accompanied by a cargo manifest outlining the contents of the container, as well as forwarders’ bills of lading, or NVOCC bills of lading for each shipment loaded into the container.

Consolidation Question

In this question, you have 2 customers who each have cargo to ship to Tianjin, China. Different shippers (consignors), different importers (consignees). All details are given below.

As the consolidator, your task is to:

1.