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LCL stands for "Less Than Container Load." It is a method of transporting large cargo in small packages. It is often used for shipments that are too big for standard containers but not large enough to require air freight container services.
LCL shipments are an important part of the transit process. Here’s how it works:
The exporter chooses a service provider, who will handle the transit process.
The exporter shares all necessary shipment details like origin, destination, cargo dimensions, and weight with the service provider.
The exporter’s cargo load makes its way from the factory to the service provider’s warehouse or CFS (Container freight shipping) or ICD (Inland container depot).
The service provider processes the shipment details, and figures out what other LCL packages the shipment can be consolidated with. The cargo is packed in a secure manner, ensuring that the different loads in the container do not damage each other during transit.
The shipper’s cargo load is grouped with other LCL consignments and loaded into the shipping container, which is then loaded onto the ship.
On arrival at the destination, the container is unloaded from the ship and moved to the warehouse for the deconsolidation of the cargo to their respective warehouses for further transit.
Once the cargo is deconsolidated, the service provider makes arrangements for the shipment to reach the customer’s doorstep.
The Process Of Shipping Lcl
Booking a spot via a freight forwarding company
Your freight forwarder should have different LCL options available to choose from.
When it comes to ocean freight, the options are generally “fast boat” (direct ocean line to the port of destination without stops) and “slow boat” (multiple stops to the port of destination).
Submitting of necessary documents
• Bill of lading
This will be provided to you by the freight forwarder once possession of your goods have been turned over for delivery. Think of it as a receipt that your goods have been picked up.
• Commercial invoice
This document is going to be provided to the freight forwarder by you (through your factory/manufacturer), and has the declared value of all goods you are importing. Based on these values, tax and duties will be assessed.
•Packing list
This document is going to be provided to the freight forwarder by you (through your factory/manufacturer), and has the dimensions and weight of all the cartons you are shipping, unlike the commercial invoice which is the declared value.
Goods consolidation
When shipping LCL, your shipment will be combined (consolidated) with other shipments into one container.
This process will happen in the freight forwarder’s warehouse after your goods are picked up.
Note that because the goods need to be consolidated, shipped, and then separated before delivery, LCL shipping will take a little longer than FCL.
Transfer of goods from consolidation warehouse to port
Once the container is filled with different companies’ goods, the freight forwarder arranges to deliver it to the port of export, where it will go through export customs and then placed on the ocean freighter and shipped to its port of destination.
Ocean transit
Depending on whether a fast boat or slow boat channel was used, expect the ship to be in the water anywhere from 10-30 days before arriving at the final port.
Destination warehouse
After the container goes through import customs, the freight forwarder will arrange to deliver it to their warehouse for de-consolidation. At this point, the container is opened, and each company’s goods are handed off to a courier company (think UPS, FedEx, etc) for delivery to the customer’s destination point.
Final delivery
The courier will deliver the goods, generally by truck, to the customer’s selected destination. At that point, the transaction is complete.
Cost Efficiency
By sharing container with others, you save a lot of money in freight costs. In traditional Full Container Load (FCL) shipping, businesses are required to pay for an entire container, regardless of whether it’s fully utilized. On the other hand, LCL presents a cost-effective alternative by enabling multiple shippers to share space in a single container, thereby dividing the shipping costs efficiently. This cost-effective model proves especially beneficial for small and medium-sized enterprises looking to optimize their budget without compromising on the efficiency of their supply chain.
Flexibility in cargo volume
LCL solutions offer outstanding flexibility when it comes to cargo volume. Unlike FCL, where a company commits to filling an entire container, LCL allows shipping smaller quantities of goods. This flexibility is ideal for businesses with varying shipment sizes, enabling them to adapt to market demands without the constraints of container capacity. Whether it’s a modest shipment or a larger delivery, LCL ensures that you only pay for the space your goods occupy.
Short lead times
In the rapidly changing world of international trade, it’s crucial to shorten lead times to stay competitive. LCL shipments often have shorter transit times compared to FCL, thanks to the frequent departures of LCL consolidations. This agility is especially advantageous for businesses with time-sensitive shipments, aiding them in meeting customer demands and maintaining a responsive supply chain.
Efficient logistics strategies
By embracing LCL shipping, businesses can minimize inventory holding costs through frequent, smaller shipments, and optimizing warehousing strategies. This approach allows for leaner inventories, reducing the need for extensive storage space and lowering associated holding costs. Simultaneously, LCL opens doors to the global market, connecting businesses to diverse opportunities worldwide. LCL enables market expansion, customer base diversification, and enhanced global presence without the constraints of large shipment volumes, so it´s particularly advantageous for small and medium-sized enterprises.
Environmental sustainability
Opting for LCL shipping is also a conscientious choice for environmental sustainability. LCL allows for optimal use of container space, reducing the need for additional containers and minimizing carbon footprints associated with transportation. By maximizing container capacity through shared shipments, businesses contribute to greener logistics practices. This not only aligns with eco-friendly initiatives but also positions LCL as an environmentally responsible choice in the realm of global trade.
LCL Shipments in Pallets – In this type, the cargo is placed in pallets and secured with straps, stretch wraps or so. Shipping cargo in pallets is highly recommended as it promotes easy handling, security and prevents cargo damage, as LCL shipments go through multiple change of hands.
LCL Shipment in Boxes – The cargo can also be packed in stackable boxes, but it depends on the nature of the cargo. This option may be a bit cheaper than pallets, however, here the cargo is prone to damage, thus compromising on the security of your goods.
How do handle LCL shipments?
Booking and Collection
● Receive booking: The carrier receives a booking request for an LCL shipment, specifying details like cargo type, volume, origin, and destination.
● Collect cargo: Based on the booking details, the carrier collects the LCL cargo from the shipper’s location or designated pick-up point.
● Inspect and document: The carrier inspects the cargo for proper packing, labelling, and compliance with regulations. Any discrepancies are documented and communicated to the shipper.
Consolidation
● Transport to warehouse: The LCL cargo is transported to the carrier’s designated consolidation warehouse.
● Warehouse processing: The cargo is unloaded, weighed, measured, and assigned a unique identification number for tracking.
● Container loading: The cargo is carefully loaded into a shared container, ensuring proper weight distribution and securing the goods to prevent damage.
● Sealing and documentation: The container is sealed, and documentation is prepared, including a container manifest detailing the contents and their owners.
Transportation
● Land transport: The container is transported to the designated port for export by truck or rail, depending on the route and carrier’s network.
● Ocean shipping: The container is loaded onto a ship and transported to the destination port, following all safety regulations and handling procedures.
● Tracking and updates: Carriers provide tracking information to the shippers and consignees throughout the ocean voyage, informing them of the shipment’s progress.
Deconsolidation and Delivery
● Port arrival and customs: Upon arrival at the destination port, the container is unloaded and processed through customs clearance.
● Deconsolidation: The LCL cargo is carefully unloaded from the container and segregated based on individual shipment information.
● Delivery arrangements: The carrier coordinates with the consignee to deliver their LCL cargo to the designated location.
Communication and Documentation
● Clear communication: Throughout the entire process, carriers maintain clear communication with shippers and consignees, providing updates, handling any inquiries, and addressing any concerns.
● Detailed documentation: Carriers maintain meticulous documentation for each LCL shipment, including booking details, cargo manifests, warehouse records, transportation logs, and delivery confirmations.
Ask Multiple Carriers
The first important tip to get the best LCL shipping rates is to ask for multiple carriers. This will allow you to narrow down and choose the best price, give you an insight into the market rates, and have a wide range of options.
Account for Pallet Dimensions
Accounting for pallet dimensions and the box dimensions will help you analyze the costs better as pallets also take up container space for which you are charged.
Book Port-to-Door or Door-to-Door Service
Usually, when freight forwarders offer you a very cheap quote, it often has hidden charges. A good trick for this is to book port-to-door or door-to-door service. This will include all the costs that you can validate in advance.
Assess the Internal Dimensions of Container
Lastly, you must continually assess the container’s internal dimensions because the interior dimensions are different from the external ones. A 20 feet container might have a lesser space inside. This way, you can better decide about LCL or FCL shipping.
LCL container services are a type of freight shipping that uses less than 20 feet (6 meters) of containers. This service is perfect for businesses who need to ship small items or products in bulk, but don’t have the space to store in large cargo containers.
LCL container services work by splitting your shipment into smaller pieces and shipping them through different ports, thereby reducing the amount of time your goods spend onshore. This way, you can avoid expensive port fees and storage costs while still getting your product to its destination quickly and efficiently.
In addition to saving money on transportation costs, LCL container services also offer some key advantages over traditional freight shipping: they’re faster than standard cargo shipments, they allow you to track your packages throughout the entire process, and they provide a higher level of customer service.
The company's business covers dedicated logistics in the United States.the United Kingdom. Europe, Australia. and Canada, as well as the export logistics of electrified products and pure batteries. It is committed to creating a world-class leader in standardized battery transportation. with the first choice of the Rachel brand for battery shipping.
FAQ
We are one of the best international logistics companies in China, mainly engaged in providing qualified LCL service and one stop services. Professional team and reliable service are available.
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