What is LCL Shipping?
LCL refers to ocean freight an abbreviation for less than container load is a reference to smaller ocean freight vessels where the shipper doesn’t contract for a complete container because the amount of cargo is not sufficient to be able to contract for a complete container. A freight forwarder can make “Consolidation” by combining several LCL shipments in the CFS (container freight station) before gating in at the CY (container yard) at the origin and then deconsolidating at the point of delivery.
In times of high congestion and the peak season, it’s much easier to secure a place with LCL shipping rather than FCL. LCL shipment procedure offers a less expensive alternative, and low-volume cargoes can be handled quickly. In addition, when the cargo isn’t in need, LCL shipping is a far less expensive option.
Benefits of an LCL Shipment to the buyer
The purchaser only has only pay for the space they require because containers are shared among other shipping. This allows small-scale businesses to profit from the cost-effectiveness of ocean shipping, without the need for large volumes. LCL shipping agent is able to guide you on the complete advantages and disadvantages of the LCL shipment. That is why you need to connect with the right LCL shipping experts like SAG Logistic.
Airships are charged either by gross weight or volume weight, or whichever is more. While the ocean LCL is charged by the cubic meter (or per 1,000 kilograms, whichever is more) which makes it more affordable for small shipments but heavy, given that transportation time isn’t an issue.
Some other benefits of LCL international shipment are :-
Good choice for small quantities – In the beginning, an enterprise might need to transport smaller volumes of products initially prior to expanding their volume. LCL is a great alternative to commence trading.
Lower risk of sourcing – When you’re procuring items from multiple suppliers to test stocks, using the LCL shipment procedure could prevent the need to purchase large quantities of goods for your initial test.
Faster delivery time – As you don’t have to wait until you have enough volume to ship a complete container of goods. The items ordered will arrive at the destination quicker
Lesser inventory management – since the volumes of merchandise is less than what is needed for a full container, the management of inventory within the storage facility will become less
What is the best time to use to Sign an LCL Agreement?
While LCL has its drawbacks, however, it’s an extremely popular method of shipping employed by buyers as its advantages are greater than the disadvantages. It is beneficial to determine the ideal moment for the LCL shipment procedure. Five factors to take into consideration:
Volume :- It is the quantity of the container is calculated by the space it takes up. The volume of a box will be determined by multiplying its length as well as width and height. Ocean freight is billed according to its volume. This is inclusive of LCL shipment. It is recommended to look into the possibility of an LCL agreement if the amount of the merchandise is between 1 and 18 CBM.
The Gross Weight :- Its Gross amount is the weight of the package in its entirety, including that of packaging as well as master cartons. It is recommended to think about shipping with an LCL agreement in the event that the total weight of the package is greater than 150kg during peak seasons and 200kg in the off-peak seasons.
Product Category :- The category of the product is also taken into consideration when shipping. Certain products aren’t allowed to be transported via air because of airline restrictions like compressed gasses, aerosol cans, as well as dry ice. In this instance ocean freight, especially LCL is an ideal alternative based on the size of the shipping.
Route :- The route is also taken into consideration when deciding on the LCL agreement. Some routes that are not suitable for ocean shipments can be used for LCL shipment because there is a shortage of consolidators. The reason that is usually cited is due to the fact that there aren’t enough shipments that can be combined on that route. If this is the case it is the following step to locate alternatives to the route or ports. If the alternative is more costly alternative shipping options are worth considering.
Time :- The final factor that is important to consider is timing. It is an important element in every supply chain. For businesses selling their products on online marketplaces, it is possible that the timing can be either a hit or a failure. The absence of stock for a few days could seriously impact the rank of the listing. If you are without stock for a prolonged period of time and the listing could shrink to the bottom of the page, with the possibility of a loss of revenue. The timing of delivery must be taken into account when shipping items.
If you’re looking to have your product within less than 6 weeks after the manufacturing process is completed and you are in need of a consultation with an established international LCL shipping company to discuss the options available. If time isn’t an issue and you are looking for a better deal, an LCL arrangement is the better choice.
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