LCL export: The forms
It is true that you collaborate with carriers and forwarders. However, it is your responsibility to ensure the proper documentation is included with your shipments. Although your forwarder does represent you, you are the expert on your company. The freight forwarder is primarily in charge of the items' transportation, but he has absolutely nothing to do with your export documentation or the business' compliance. Because the form you are about to provide is not under the obligation of the sea freight and the forwarder, please fill it out as accurately and correctly as you can.
Benefits of LCL Shipping
LCL shipping has a number of benefits and is an excellent way for smaller forwarders to break into the market.
More accessible because cheaper
Shared container shipping is an excellent approach to lessen the load on your supply chain. For an FCL shipment, you won't pay for a complete container; instead, you'll split the price of a container with the other customers who will be utilizing it. You can reduce the cost of your shipments in this way. Although it is not required in this instance, most shippers wait until the container is completely filled before dispatching shipments, as we have discovered.
A more flexible schedule
Unfortunately, things don't always go as planned because of time constraints. Since we are not restricted to a long-term shipping plan that requires shipments that totally fill a container, this is not a constraint with LCL shipping.
Focus on your business
The bottom line is that while shipping is important to your supply chain, most firms don't prioritize it as their main emphasis on a daily basis. While you are concentrating on closing sales, your shipment has to run in the background. Utilize a freight forwarder to plan your timeline for LCL shipment internationally.
LCL shipping: the steps
Step 1: Booking a shipment
Of course, it makes sense that scheduling a shipment would be the initial action. The forwarder will reserve a container through an "LCL consolidator" once you explain that you do not have enough products to fill a container.
Make sure you transmit all pertinent information to the cargo during this phase, and the forwarder will come up with the best option for you. Generally speaking, this data relates to your shipment's weight, size, quantity of items, etc. Your forwarder will be able to advise you on the best options based on this information, especially after taking notice of the size of your products.
Your freight forwarder can compare the costs of your shipment between FCL and LCL based on the size of your shipment to determine which method is the most economical.
Once the freight forwarder has received all the information, they can schedule your shipment. To prevent delays brought on by the busy season, reserve your space as soon as feasible (most often starts in August until October). Additionally, this will help you keep your supply chain on schedule and save money.
Step 2: Preparation of the merchandise
The second step is to get your shipment ready for shipping. Depending on the freight, this process may take some time. As a result, we recommend that you begin preparing it as soon as possible, especially if the goods require special packaging.
Certain types of products, such as lithium batteries, are subject to several laws that necessitate particular packaging. This is something you will need to consider when planning.
Step 3: Consolidate
The second step is to get your shipment ready for shipping. Depending on the freight, this process may take some time. As a result, we recommend that you begin preparing it as soon as possible, especially if the goods require special packaging.
Certain types of products, such as lithium batteries, are subject to several laws that necessitate particular packaging. This is something you will need to consider when planning.
Step 4: the “drayage”
If your products have already been consolidated at the port of departure, the container will need to be transported to the port of departure. “Drayage" is a logistics term that refers to items that are moved over a short distance. It is one of the most significant phases because your goods will only arrive at their destination for export in this manner.
Step 5: Shipping
The following step will be to ship your cargo out of your nation and hence abroad. The shipping can be made directly or via a transshipment point, which is a port where all items are unloaded and then shipped abroad. If your shipment is concerned with the first, it will reach at its destination without stopping, but if it is concerned with the second, it will stop in transshipment ports before arriving at its destination.
Step 6: Unbundling
When your goods arrive at the port of entry, it will be unloaded and transported to a container freight station, where it will be separated. The container will be emptied, and the cargo will be split and shipped to their respective destinations. This procedure typically takes 3 to 6 days.
Step 7: Collection or delivery
Once your items have been unbundled, they are ready for your shipping company to pick up and, based on the shipping conditions, are frequently delivered to your house.
At the time of delivery, the recipient of the goods is typically required to sign a receipt confirming that they have done so.
FCL Shipping: Definition
After we've looked at LCL shipping, let's have a look at FCL shipping. It is prudent to select a cost-effective and secure choice while minimizing costs throughout your supply chain. Full Container Load (FCL) shipping is a beneficial alternative in many situations, particularly when delivering a significant volume of merchandise. FCL shipping includes transporting products in a "full" container. The container is only utilized for one whole cargo. You will not be sharing the container with any other items; it will be all yours. However, this also implies that you are responsible for the entire shipment's expense.
Benefits of FCL Shipping
The FCL expedition has numerous advantages; here are a few that we believe are important:
The cost
Unexpectedly, it costs less to ship large quantities in an FCL container than an LCL. The fact that the LCL cargo is charged per cubic meter, whereas the FCL is charged per container can be used to explain this. The FCL has a very strong price-performance ratio beyond this level and is more efficient. The LCL is best for modest volumes, i.e., less than 10 cubic meters.
Port fees serve as an illustration of how this operates. In Australia, a typical 20GP carrying 28 CBM of cargo can cost between $550 and $800 in port fees. The price of port fees would simply be $28.50 per CBM.
An LCL's port fees could run as high as $125 per CBM. The port fees would rise to $3,500 for an FCL shipment of the same volume and to $2,700 for an LCL shipment.
Damage Control
Your items won't be combined with any other commodities because they are the only ones in the container, thus you won't sustain much harm. Additionally, the commodities require less handling because they are gathered together. It's possible that when you receive your shipment, your container won't have ever been opened or handled. Please be aware, nevertheless, that irrespective of your shipping, customs costs will be applied.
Efficiency
Because you won't need to deliver numerous little packages in various shipments, using FCL is considerably more efficient than using LCL. You won't be required to pay repeated customs fees as a result. Since everything is shipped together in this instance, your goods are handled better, processed more cheaply, and handled more quickly.
FCL Shipping: The Steps
Step 1: Booking a Shipment
Of course, booking your shipping through FCL comes first. Your freight forwarder can handle the freight booking, but you must be sure to provide him with all the specific details necessary to make the booking. Therefore, provide as much information as you can (weight, volume, sizes, etc.) to help your freight forwarder book a cargo and confirm your requests as efficiently as possible. The freight forwarder will schedule a shipment for you as soon as he gets all the necessary information. Like LCL, make sure to make reservations outside the busy times to prevent delays and additional fees.
Step 2: Preparing Goods for Shipment
The preparation of your items for shipping is the following stage. Depending on the type of the items, this could take some time. We advise you to get started as soon as possible and get guidance on whether your products need specific packaging.
For instance, there are a lot of rules governing lithium battery packaging. This must be taken into consideration while creating your schedule.
Step 3: Drayage
Once your items have been packaged and are ready to go, the entire container will be "transported" to the port where they will be exported.
A service that specializes in moving cargo over short distances—in this case, to the port of export—is referred to in logistics as "drayage."
Step 4: Cargo in Transit
Your FCL cargo will be traveling on the proper vessel when it reaches the port.
Similar to the LCL, your cargo can be delivered either directly to its final location or to a port for transshipment. In the second scenario, it will make multiple port stops on route to its final destination. Depending on the situation, each case has a benefit.
Step 5: Pickup or Delivery
This final phase is comparable to the LCL in that your goods will be unloaded and delivered to the destination place in accordance with the incoterm when it reaches the port. The receipt must be signed by the person who receives the items.
FCL Shipping: When is it the best option?
When you have enough cargo to fill a single container, this form of cargo is unquestionably the better choice and is significantly more efficient. This is the ideal choice if your cargo can fit inside one container.
The goods are large enough
Using FCL shipping is still a wise choice if your package is substantial and more than 15 cubic meters? If you have a huge cargo, consider using this method of shipment because it is in this situation much more effective and profitable.
Regular shipments
If your goods can fill an entire container, and you are used to sending goods, this kind of shipment remains the best way. However, if you want to ship a small amount of goods at the last moment, then LCL is a better solution.
In conclusion - Which is better between LCL and FCL?
Consider your company's objectives when choosing between FCL and LCL shipment to make the best decision. Then, you will be much better able to make decisions based on your needs. If you are still unsure after that, contact our DocShipper experts, who will give you advice on what will work best for your individual requirements.
