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In the dynamic world of shipping and logistics, understanding the nuances of Less than Container Load (LCL) shipping can be a game-changer for businesses of all sizes. Kerry Logistics Oceania, a global leader in the logistics sector, is here to guide you through the intricacies of LCL services.
At Kerry Logistics Oceania, we are your trusted partner in navigating the complex waters of the logistics industry. Specializing in sea freight between Asia and Oceania, we have carved a niche in the automotive and fashion & lifestyle sectors. Our global network, coupled with local expertise, ensures that we provide solutions that are both innovative and tailored to your needs.
Without further ado, here are the top 10 FAQ about LCL services:
LCL, or Less than Container Load, is a shipping service that facilitates the transportation of smaller volumes of goods by allowing multiple shippers to consolidate their cargo in a single container. This method, which has been a cornerstone of global trade since 1937, fosters efficiency and sustainability, making it a preferred choice for small and medium-sized businesses.
Considering that the load of a 20-foot container is approximately 25 Cubic Meters, LCL is particularly useful for importers that need to restock their supply but have less cargo than that. Depending on the value of the cargo, it might not be cost-effective to purchase the transportation cost of a whole 20-foot container (TEU) if you plan to import less than 70% of the container's capacity. This is where LCL mode kicks in: you can share the space within one container with multiple importers that are moving cargo in the same route.
The illustration below shows the difference between shipping LCL (left) vs. FCL (right).
Choosing LCL shipping is not just a cost-saving strategy; it's a commitment to a greener planet. By sharing container space, you reduce the carbon footprint, making a positive impact on the environment. Moreover, it offers unparalleled flexibility, allowing businesses to ship goods without waiting to fill a whole container, thus optimizing the supply chain and reducing storage costs.
Timing also plays an important part in using LCL as a mode of transportation. If you need to wait to have enough cargo to ship an FCL to balance the cost of the import, the waiting times might disrupt your supply chain. Jumping into LCL will mean that you can allocate part or the whole of your cargo in available shipment routes without having to wait.
The LCL shipping process is a testament to logistical synergy, where freight forwarders play a pivotal role in organizing and consolidating shipments. This process involves several steps, including collection of goods, packing for LCL shipping, consolidation at the warehouse, and transportation to the seaport for international sea transportation. At the destination, the freight forwarder de-consolidates the container into individual LCL shipments, ensuring a smooth delivery process to the final receiver.
Due to the logistical intricacies of the process in terms of documentation, sorting, packing and customs, carriers don't usually offer LCL service. It falls to Freight Forwarders to offer that service as part of their portfolio. As a customer, it simplifies your process and makes it easier to follow the transit of your cargo without having to liaise with multiple vendors.
The standard marine container offers a volume of approximately 33 cubic meters (with a max payload between 25 - 28 cubic meters, with 25 being the standard), serving as a benchmark for LCL shipping. This service is your ally in efficiently shipping goods less than this volume, without the financial strain of booking an entire container. It's an economical choice for businesses with smaller shipment volumes, offering a cost-effective solution to meet your shipping needs.
It is important to note as well, that if you have multiple small shipments from different vendors that come from the same country (or even different neighbouring countries), you might want to consider a buyers consolidation service.
If this scenario rings a bell (multiple small shipments with multiple vendors), contact our team to discuss alternatives that could be more cost-effective for you.
Finding a reliable LCL service requires thorough research and an understanding of potential freight forwarders' strengths. Consider aspects like service frequency, geographical coverage, and customs clearance capabilities to make an informed decision. It's also beneficial to seek customer references and verify the forwarder's experience and expertise in the LCL shipping market.
Most freight forwarders co-load (meaning the sublet space from other freight forwarders) for LCL shipments. This is the standard model and it is effective. However, it adds more players to the whole process. Choosing a partner that runs their own LCL Consolidation (meaning they hire the container directly from the carrier instead of co-loading) translates into more accountability and control over the handling of the cargo.
At Kerry Logistics, we offer our own LCL Consolidation services for certain lanes. If you are interested to explore some options:
Transit time can vary based on several elements, including the chosen route and freight forwarder's schedule. It's essential to discuss the expected transit time with your chosen forwarder to plan your shipments adeptly. Understanding the total transit time, not just port-to-port, can help you manage your logistics more effectively, ensuring timely delivery and customer satisfaction.
Ideally, you will choose a freight forwarder that publishes their established routes and has set timings. This reduces volatility and uncertainty. Furthermore, choose a partner that is known for informing and communicating of any blank sailings and changes in schedule as they happen proactively.
Absolutely, safeguarding your shipments is a priority. Discuss the available insurance options with your freight forwarder to shield your goods from potential risks during transit, ensuring peace of mind and financial security. Cargo insurance is a critical aspect of LCL shipping, offering protection against unforeseen circumstances and providing a safety net for your valuable cargo.
Also, did you know you can insure your cargo with a different freight forwarder? you don't have to choose the one you are moving your goods with.
Kerry Logistics Oceania offers comprehensive insurance options for your cargo.
LCL shipping offers numerous benefits, including cost-effectiveness, logistical flexibility, and environmental sustainability. It's a golden ticket to optimizing your shipping processes without straining your budget. Moreover, it allows businesses to maintain a steady flow of goods without the need for large inventory spaces, thus enhancing operational efficiency.
It offers the same transit time as FCL shipping as a standard, without being tied to minimum volumes or weight capacity. Furthermore, you can ship multiple vendors in a single container with LCL consolidation, guaranteeing you will receive your cargo simultaneously without delays and improving your supply chain planning.
While LCL shipping is a boon, it comes with its set of challenges, including potentially longer transit times and handling risks. However, aligning with a reliable freight forwarder can significantly mitigate these challenges, ensuring a smooth shipping experience. You must know these challenges and work closely with your forwarder to navigate them successfully.
Increased transit times come from using coloaders that optimize their container utilization by consolidating more cargo along the route. This doesn't always happen, but it is a risk you need to be aware of and mitigate by asking your freight forwarder about any transshipments or stops along the route.
It works exactly the same as other modes of transportation. Despite having to deconsolidate internally the Bill of Ladings for the container transport, for you as a customer the process is the same. Navigating through customs is a breeze with LCL shipments, thanks to the streamlined processes facilitated by experienced freight forwarders. Ensure to have all necessary documentation in place for a hassle-free customs clearance experience. A proficient forwarder can also assist with customs clearance, making the process even smoother and more efficient.
LCL shipping is your gateway to efficient and sustainable global trade. At Kerry Logistics Oceania, we support fostering a future where logistics meets innovation and sustainability.