Exporters always prioritize favorable shipping conditions while exporting their goods. With multiple routes available for shipping, there are plenty of options available to choose from. A number of factors, such as time sensitivity, product size and nature, and the size of the shipping container, need to be evaluated, before finalizing the shipping container.
Shipping containers have standard sizes as recommended by the International Organization for Standardization (ISO). They come in 8, 10, 20, 30 or 40 feet lengths, for you to choose from, depending on the size of your shipment. However, in a case where the package size is significantly smaller than the size of the container in which it will be shipped, you may be inclined to share the container space with another exporter, saving you the bear the cost of the whole container.
Such an arrangement, when two or more packages are grouped and transported through a shared container, is known as “Less than Container Load” or - LCL Shipping. Let's find out about LCL with Giaiphapdonggoi.net!
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1. What is LCL?
LCL is a term used in ocean freight to describe “Less than Container Load” loads or a shipment that does not contain an entire Container. Depending on the route, destination and requirements, shipping via LCL can be more expensive than FCL, so contact a reputable freight forwarder or 3rd party logistics company to get some quotes. .What is LCL?
LCL means a process by which exporters share cargo space with each other when the package size is significantly smaller than the maximum load a container can carry. It is a win-win situation, for both the shipping company as well as the exporter. The shipping company recovers the cost of the container while the box sharing makes shipping inexpensive for exporters.
Not only is this a great way to save on transportation costs, but it also creates a much more environmentally friendly, responsible and sustainable global shipping method.
Trivia: Another name for LCL shipments is “groupage shipments” – because they are formed by grouping smaller, individual packages together.
2. How does the procedure in LCL Shipment work?
When you choose an LCL shipment, you choose a door-to-door delivery service, the procedure is quite simple and efficient. Here is a step-by-step guide to shipping goods to your customers via LCL shipping:
When you choose an LCL shipment, you choose a door-to-door delivery service, the procedure is quite simple and efficient. Here is a step-by-step guide to shipping goods to your customers via LCL shipping:
How does the procedure in LCL Shipment work?
Step 1: Register with the shipping company
Since shipping companies play an important role in getting your products to your customers perfectly, choosing the right shipping partner is an extremely important part of the process.
Step 2: The shipping company will get information about your package
When you contact the shipping company about your shipping needs, they will ask about all the details about your shipment. You will have to provide them with information about the delivery location, the size of your shipment, and how long they can take the product from you. They process all this information and determine what other packages your shipment can be grouped with and the ship that can be assigned to deliver it to you.
Step 3: LCL Shipment and Shipping
Once your package arrives at the shipping company's warehouse, preferably near the port. It is stacked with other smaller packages to be delivered along the same trade route and then transferred into a shipping container. This process is often referred to as 'Container Stuffing'. Then, this container is lifted and put on a ship, the ship will set sail to deliver the goods to the desired location.
Step 4: Arrival and delivery
When the ship reaches its destination, the container is taken off and transported into the warehouse for the purpose of segregation. Once the ungrouping process is complete, the shipping company will deliver the product to your customer at their doorstep.
LCL Shipment Tracking: Thanks to technological advancements in the field of communication and tracking, all major shipping companies today offer their customers state-of-the-art shipment tracking facilities. While tracking LCL shipments is slightly more difficult than tracking FCL shipments, most companies provide a significant amount of real-time information about LCL shipments throughout the entire process. delivery process.
3. Cost/Fees included in LCL . shipment
Cost/Fees included in LCL . shipment
Since the shipping process consists of many stages, each stage contributes a significant part to the total transportation cost
transfer LCL. Contrary to popular belief, actual shipping costs less than grouping and ungrouping packages at the warehouse. This is because there is a bit of manpower and infrastructure involved in the process.
LCL shipping charges are usually calculated based on the size of the package, i.e. length, width. The standard unit for LCL shipping charges is USD per CBM (cubic meter). However, if the weight of the package exceeds 1000 kg (1 ton), the cost will be calculated based on the weight. Chances of this happening with LCL packages are rare as LCL shipping is recommended for smaller load sizes.
Calculate the CBM of your LCL shipment
To calculate the size of your product in CBM, all you have to do is pack it into a cube/cube package and measure the length, width and height of the box. For example, if your product fits into a package that is 3.2 meters long, 3.5 meters wide and 4 meters high, the volume of the package will be 3.2 X 3.5 X 4 = 44 CBM. Make sure you convert all units to meters before multiplying them.
Note: LCL shipments are typically 20ft and 40ft standard containers by all major international shipping companies.
4. What is the difference between FCL and LCL?
In contrast to Full Container Load (FCL) shipments that provide specialized containers to transport your goods, LCL shipments only allow you to rent a limited amount of space inside a container. While both of these methods are extremely popular and have their own benefits, an exporter is likely to be faced with a situation where they have to consider which is the best option for them.
What is the difference between FCL and LCL?
To make things easier, here is a brief comparison between the two on the basis of a few parameters:
Speed, velocity
Since FCL shipments have only one destination, as opposed to LCL shipments with multiple destinations, FCL ensures much faster delivery speeds for your shipments.
Safety
If your products are fragile, FCL shipments are much better suited to get them safely to their destination, simply because goods move more during the grouping and ungrouping stages. , which may lead to mishandling of the goods and damage to them.
Logistics
LCL shipping allows you to have a steady flow of goods moving in or out of your warehouse without worrying about the risk of your warehouse being overloaded. This makes LCL shipping much more inventory-friendly than FCL.
Expense
This is a bit complicated, considering that while LCL shipments generally cost less than FCL, their CBM per unit price is higher than FCL shipping. This means that there exists a breakeven value, after which it is more economically feasible to ship FCL even if your package does not take up the entire container space.
So why is LCL shipment more expensive than FCL shipment? Because shipping companies invest a lot of time and effort to find the optimal way to group packages. In addition, they must also take into account the fees they incur, in case they cannot find other similar, smaller shipments to match with you. All of these contribute to increased costs.
Thank you for reading this article of Giaiphapdonggoi.net, hope the information will answer the question what is LCL? The meanings of the word LCL will help readers add useful knowledge.
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