Cargo Consolidation Hub Cost Calculator — Hub-and-Spoke vs Direct

Calculate the cost and ROI of a cargo consolidation hub. Multi-origin freight consolidated before final delivery — find when hub-and-spoke beats direct shipping.

Quick answer: Consolidation hubs save money when individual origin shipments are too small for FTL but can fill a truck combined. The handling cost ($20–$50/pallet) is offset by the freight rate improvement from FTL vs LTL.

🔄 Cargo Consolidation Hub Cost Calculator

Monthly Origin Shipments to Hub

Avg Pallets Per Origin Shipment

Direct LTL Cost Per Pallet ($)

Consolidated FTL Cost Per Pallet ($)

FTL rate ÷ pallets loaded on consolidated truck

Hub Handling Cost Per Pallet ($)

Inbound to Hub Per Pallet ($)

Annual Saving / Cost

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Direct LTL Per Pallet

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Hub Route Per Pallet

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How to Use This Calculator

Enter origin shipment volume — monthly shipments and pallets per origin.
Enter direct LTL vs consolidated FTL rates — the FTL rate per pallet assumes a full truck load from the hub.
Add hub handling and inbound costs — cross-dock handling + inbound freight to hub facility.

Worked Example

20 shipments/month, 8 pallets each, $95 direct LTL, $48 consolidated FTL, $28 hub handling, $22 inbound.

Direct: $95/pallet
Hub route: $22 + $28 + $48 = $98/pallet
Result: Direct is $3/pallet cheaper — hub not justified at this volume

Hub consolidation wins when consolidated FTL is much cheaper than LTL. If FTL rate drops to $35/pallet (fuller truck), hub saves $10/pallet = $19,200/year on this volume. The key variable is how full the consolidated trucks run.

Frequently Asked Questions

When: multiple origins shipping to the same destination regularly, individual shipments are LTL (under 10,000 lbs), combined volume fills FTL trucks, and origins are geographically clustered for efficient inbound collection. Retail distribution from multiple suppliers to DCs is the classic use case.

Hub routing typically adds 1–3 days vs direct. The freight saving must be weighed against inventory carrying cost of extra transit days and customer service impact. For non-urgent replenishment freight, the trade-off usually favours consolidation. For time-sensitive freight, direct shipping wins.