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Sounds easy enough. But in our years forwarding practical experiences, we have heard many sad stories about how importers are shocked by the invoice they had to pay at the LCL destination. Since there are LCL destination fees, more than you prepaid in most cases.
1. FCL shipment will be loaded và sealed at origin by your supplier or the manufacturer, then shipped by a combination of ocean, road or/& rail to your final destination.
The LCL shipment will be exposed for consolidating once at the loading port, and for sorting out again at the destination port.
2. The bill of lading of FCL shipment will be issued directly by the official shipping line.
The bill of lading of LCL shipment will be issued by the freight forwarder.
3. LCL service charges more than FCL when it comes khổng lồ shipping cost per unit.
4. Shipping mark, which is written symbol or symbols that are printed on outer package, is mandatory for LCL shipment.
The purpose of the marks is to identify your goods from those of other shippers. They should be made boldly, with waterproof ink, so that they can always be easily read. They should be in black, with red or orange for dangerous cargo.
The marks should be in both English và the language of the country of destination. The package can be easily identified with the corresponding shipping documents & easily located for customs clearance và delivery.
Why LCL charges more than FCL?
Most times, using LCL logistics, the freight agents often charge 2~3 times as much per cubic meter, compared to FCL logistics.
Sometime the prepaid rate is cheap, but there are various destination fees to be collected, which listed below for reference only.
PSC fee (Port Service Charge)SCA fee (Service Charge due Agent)D/O fee (Deliver Order)THC fee (Terminal Handling Charge)TSF fee (Terminal Security Fee)IPF fee (Import Processing Fee)…For the steamship carriers, they only accept full container booking.
A freight agent has lớn combine several LCLs inlớn a full container. It makes sense. The workload is actually higher when managing LCL transportation. While FCL shipments can be unloaded và delivered directly khổng lồ the buyer’s location, LCL shipments must be unloaded at the Port of Destination.
Especially for the split process at the port of developed countries, owing khổng lồ many manual labor which is necessary for different kinds or shapes of goods.
That’s why you have sầu lớn pay more shipping cost at the destination of 15 cbm LCL than a full 20ft container.
Advantages when you buy FCL
Importing by the container load is not always as expensive as one might think, và a full container load results in lower shipping costs compared to lớn small volumes.
1. FCL can be tracked directly from the shipping company.You can traông chồng the location & estimated arrival date of your container shipment from Đài Loan Trung Quốc, through the shipping carriers’ websites.
In order lớn track your goods, you need khổng lồ know which shipping line is transporting your cargo, and the container number, booking number or document number (any of them is usually good enough).
2. Buy FCL means your shipment will be safer.In the LCL arrangement, the shipper is required lớn deliver the cargo lớn the forwarder’s warehouse for containerisation. The forwarder will use the same container khổng lồ pachồng in more cargo from other shippers to lớn make a complete container load at the warehouse. This action is also called freight consolidation.
Your cargo will be exposed to a higher risk of damage or loss, as it will be exposed when the carrier consolidates it with other cargo at the port of loading, and exposed again at the destination.
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If you choose LCL cargo shipping, make sure your goods prepared và packed properly lớn be able khổng lồ withstand sharp or heavy objects as well as chemical fumes or liquids.
3. LCL shipments will take longer khổng lồ process.This is because the carrier can load FCL containers without any fuss, whereas cargo for LCL needs khổng lồ be consolidated first. Same situation at the destination.
4. FCL unit freight cost will be cheaper.Lower price per cubic meter compared khổng lồ an equivalent volume or weight of cargo shipped by air freight or LCL sea freight. Because it’s more convenient khổng lồ optimize your quantity và packaging lớn maximize the space usage inside a trăng tròn feet or 40 feet container.
There are numerous rates, surcharges and tariffs which are adjusted lớn the kích cỡ of your LCL shipment.
Advantages when you buy LCL
Rather than importing a large quantity of goods from Đài Loan Trung Quốc, you may want to lớn start with a small shipment to lớn learn the problems & issues that will inevitably arise. Your knowledge of restrictions, taxes, Chinese society, finances & professional resources will be greatly tested.
1. MOQCargo with a volume as small as less than one cbm (taken as one cubic meter) can be shipped by sea.
2. Lower sourcing riskA trial order with small quantity can prove if the sản phẩm is qualified và the supplier is experienced.
3. Shorten delivery timeSometimes, it will arrive sầu sooner than FCL, since you vì not need to lớn wait until your supply have sầu enough stochồng khổng lồ fill a complete container alone.
4. Minimum inventory managementWhether you are new to lớn a nibít market, or just on a budget, choose LCL shipment at first can lower your financial risk, and keep you out of large inventory trouble. Therefore your supply chain suffers fewer bottlenecks, allowing your operations to run smoothly.
The cost of inventory is not solely determined by the direct expenses associated with storing, managing, và maintaining the goods, but also by the opportunity costs that arise when money is tied up. Goods represent a store of value; keeping resources tied up in products or components that are not being utilized or sold immediately restricts a company’s overall cash flow & may reduce the amount of liquid capital available.
How khổng lồ choose FCL & LCL cost-effectively?
At first, you should request your supplier quote you a price based on a predetermined quantity (which is often the case when importing from China). However, the supplier should still calculate how many sản phẩm units fit inside the container.
There are also situations when you need khổng lồ go even bigger than a 20′ container. A 40′ container is more than twice as long as a 20′ one, but the freight charge for a 40′ container is less twice than a 20′ one.
But if small cargo like the volume under a full container loading,
If 1cbm~8cbm, choose LCL.If 8cbm~15cbm, vì chưng some research khổng lồ see what’s the most effective sầu solution.If over 15cbm, choose FCL without any hesitation.Some points khổng lồ keep in mind:
1. Plan ahead
If you are interested in consolidating orders, make sure khổng lồ schedule accordingly & allow enough time to lớn plan the shipments in line with the consolidation requirements. Sometimes, this will help save sầu a lot.
2. Use pallet
It is generally a good rule of thumb lớn pack your goods on pallets. This helps with loading and can avoid problems from occurring in transit.
3. Size matters
When considering the kích thước of your products, you must also rethành viên that the dimensions of the packaging (& any further packaging carried out on your behalf) are the values that are used lớn calculate the cost, & in some cases this packaging can add up to 30% khổng lồ each dimension.
If your products are too delicate, or cannot be tightly packed and therefore takes up more space, it will obviously affect the cost.
Taking away
Some importers try to lớn optimize their freight costs. The rate of one unit product is definitely lower when choose FCL.
Some importers, however, simply buy what they need. Not only considering landed cost, but also avoiding extra inventory that might not get sold.
If you’re intending to lớn ship a large amount of imported goods regularly, then it would be worth looking at FCL, as it enjoys greater economies of scale; If your shipment is relatively small, stichồng to lớn LCL.
Try to lớn buy FCL not LCL, and ONLY buy LCL when your cargo volume is under 15 cubic meters, this should be a basic rule.
Special note: It’s not an excuse for your supplier persuade you to buy more than you really need.
If you need our assist on this, or want to lớn get a competitive quote for your FCL or LCL shipment, please feel free to let us know.