LCL Shipping: Definition, Process, and Advantages
Jan 25, 2024
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1, Definition of sea freight consolidation
Sea freight consolidation, also known as consolidation transportation, refers to a transportation method that consolidates the goods of different shippers together, and unifies the packaging, transportation, loading and unloading, and distribution processes, ultimately distributing the goods to each shipowner. LCL (Less than Container Load) transportation is usually suitable for goods with small volume and high cost of separate shipment. It is an efficient, economical, and flexible transportation method.
2, The process of sea freight consolidation
Cargo solicitation: Freight forwarding companies collect goods from different shippers and classify and organize them based on their nature and destination.
Packing: The freight forwarding company will pack the collected goods and arrange reasonable loading according to the nature of the goods, destination, and other factors to ensure the safety and transportation efficiency of the goods.
Booking: The freight forwarding company makes a booking with the shipping company based on factors such as the quantity and destination of the goods, and determines the loading time and port.
Customs declaration: The freight forwarding company declares the value, quantity, type, and other information of the goods to the customs, and pays the corresponding customs duties and value-added tax.
Loading: The freight forwarding company loads the goods onto the designated vessel and reasonably stacks and secures them according to the predetermined loading plan.
Transportation: Ships transport goods to their destination on the scheduled route.
Unloading: After the ship arrives at its destination, the freight forwarding company is responsible for unloading the goods from the ship.
Distribution: The freight forwarding company will distribute the unloaded goods according to the requirements of each shipper and notify the consignee to pick up the goods.
Settlement: The freight forwarding company charges corresponding freight and miscellaneous fees to each shipper and pays the corresponding freight to the shipping company.
3, The advantages of sea freight consolidation
Low cost: LCL transportation can consolidate the goods of multiple shippers for transportation, thereby enjoying the advantage of economies of scale and reducing the transportation costs of individual shippers. In addition, due to the reduction of the separate shipping process for individual shippers, operational costs and document fees have also been reduced.
Strong flexibility: LCL transportation is suitable for different shippers, types, and quantities of goods, and can meet the needs of different customers. Meanwhile, as it is a full container transportation, shipment can be arranged at any time without being limited by the cargo volume of individual shippers.
Fast and convenient: LCL transportation is usually handled by professional freight forwarding companies for a series of processes such as cargo collection, packing, customs declaration, and loading, reducing the operational difficulty and time cost for individual shippers. At the same time, due to full container transportation, the process of unpacking and tallying has been reduced, accelerating the flow speed of goods.
Improving cargo safety: Freight forwarding companies can take reasonable loading and protection measures based on factors such as the nature and destination of the goods, avoiding damage and loss of goods during transportation. Meanwhile, due to the full container transportation, the risk of goods being stolen or robbed is reduced.
Promoting the development of international trade: LCL transportation, as a mode of international transportation of goods, has promoted the development of international trade. Through LCL transportation, shippers from different countries and regions can export their products to other countries and regions, expand international markets, and increase trade opportunities.
