Container shipping has always been the most cost effective way to move cargo internationally from manufacturer’s floor to buyer’s door, but there is always a catch
what if the purchase order is hardly filling up a standard container, do we increase order quantity to lower unit shipping cost or ship it anyway in a container?
Or is there still another way round?
Definitely, LCL (less-container-load) is the answer to this.
The nature of LCL shipping is to share shipping cost of one FCL (full container load) with multiple shippers on the same route, it works perfectly for small and medium size shippers who are currently;
running a business on low stock or inventory
sourcing from new suppliers with trial order on MOQ
developing new product for market entry ( i.e. with lithium-ion battery built-in not suitable for air shipping )
For anyone ever shipped in LCL must be having a very different feeling compared to shipping in FCL, especially on the quotation and shipping turn-around time.
When shipping in FCL, trading terms negotiated with supplier are normally on FOB or EXW, where cargoes are packed, sealed and loaded at supplier’s premises, then delivered straight away to the port for loading. Shipping cost is paid on a full container basis with cost breakdown to ocean freight, terminal handling charge and documentation fee for data transaction.
However, when it comes to LCL, the cost structure seems rather complicated which normally involves the cost (or more surcharges) for loading, lifting, warehouse in/out etc that are never seen on the billing in FCL shipment. Moreover, shipping turnaround time for LCL is normally longer due to unexpected waiting time.
The reason behind is that to a LCL service provider, cargoes loaded in one container are received from multiple shippers where there is thus volatility in shipping volume from one week to another. Without accurate shipping forecast from shippers and sufficient data analysis on cargo mix, most LCL service providers tend to take into account all the scenarios in quotation and operation planning in order to keep the service running on a regular basis.
And that’s exactly what we are trying to make a difference about.
Through data analysis on cargo mix from our existing volume, we have come up with a LCL program that has greatly improved the shipping experience of our customers.
Key features
Instant quotation with comprehensive price guideline for each and every 0.1 cbm (cubic meter)
All inclusive price structure as user-friendly as Fedex or postal service guideline
Acceptance for booking as small as 100 KG per shipment
Long validity for shipper to plan ahead
The purpose of this program is to fully utilize all the space inside a shipping container, improve shipping turnaround time and to eventually reduce shipping cost to our customers.
China – US route has been up and running for a while (download price guideline) and more routes are in the pipeline
Stay tuned!