Shipping goods take too much effort and research. There are several factors shippers should consider before shipping their goods, such as the volume and nature of the product, time-factor, and delivery routes. There are different modes of shipping available. Choosing the right freight forwarder ensures that you choose the ideal shipping method for transporting their goods. After this, shippers need to decide the container size for their shipment. The containers usually come in 8, 10, 20, and 40 feet in length. LCL or Less than Container Load is one such example of different shipping methods used by logistics services for various needs of the customers.
Understanding Less Than Container Load (LCL) Shipping
Freight forwarders recover the cost of shipping from multiple sources. Under this method, exporters share containers with other exporters to move their goods. This method is usually adopted when the size of the Cargo is significantly less than the container size. Usually, small businesses and beginners adopt it who want to begin the export journey.
The procedure of LCL Shipping you must know about
Choosing the right shipping partner
Your shipping partner plays a significant role in your shipping journey. Choose the right freight forwarder for transporting your goods and register with them for your shipping needs.
Enlighten them about your shipping needs
Once you contact your logistics partner, they will enquire about your consignment, such as the size of the Cargo, type of goods, volume of Cargo, shipment destination, shipping mode preferred as well as special requirements related to your goods. They use this information to find out which other packages they need to add to the container. This information helps them arrange everything in advance that saves a lot of hassle and disruptions during the transit.
After the freight forwarder collects all the details, they contain the goods from the shipper and dump them into their warehouse. Now, the club the goods together to fit in the container. All the goods that will be sent to the same route are clubbed together in the same container. This entire process is known as container stuffing. All the goods are arranged so that there will be minimal damages during the loading and unloading of the goods.
As the goods are arranged in a container, the goods are dispatched from the shipping port for the final journey. The freight forwarder will move the container from their warehouse and move it to the ship. Now the journey of goods will begin as soon as the ship sets to sail.
Arrival & Segregation
Once the goods reach their destination, it is time for the segregation process. The goods are sent to the warehouse directly from the ship after it reaches the desired destination. Here the goods are segregated for the final stage of the LCL shipping process. After this, the goods are either moved to the actual destination or the shipper collects them as per their choice.
Benefits of using LCL shipping
Less than Container Load (LCL) is beneficial for so many purposes. If you have a low budget and small package, then it is perfect for you. Here are the benefits you must know about:
In LCL shipping, the costs depend entirely on the volume of shipments. Unlike FCL shipping, where the prices are fixed based on the container you choose for your shipping needs, LCL costs vary from different volumes.
Best for Peak season
During festive seasons and other peak seasons, the demand significantly increases. Because of this, a shortage of containers arises, and it becomes costlier. LCL provides the best options for regular shippers o move their goods easily and quickly.
Due to the high demand for freight forwarders, arranging separate containers for each customer becomes difficult. With the help of a Less than Container Load (LCL) shipment, you don’t have to wait for too long to access an empty container.
Best for small packages
Less than Container Load or LCL is ideal for transporting small packages. Shippers don’t have to spend their money and effort arranging a separate container appropriate for their use. Freight Forwardershelp them move out their goods conveniently.
Drawbacks of LCL shipping
LCL shipping has its own merits and demerits. Before you dive into the logistics process, make sure that you know their drawbacks as well.
Increased transit time
Since the container includes packages from several shippers, the transit time affects a lot. The freight forwarders have to wait for other packages to arrive before the transit begins. Also, the segregation process takes time as the journey end. When the goods reach the destination warehouse, they are segregated for the final stage of the process. All this hampers the time and efficiency of the services.
The customs clearance process takes longer for LCL shipment. Due to one package, the entire shipment is blocked for further process sometimes. All this can delay the transit. Custom clearance can affect badly if a single package does not comply with the customs regulations.
Higher damage risks
There are higher risks of damages in Less Than Container Load (LCL). Even though the goods are transported with due care, damage risks are higher in them. It is recommended not to transport fragile and handle with care goods in LCL shipping.
Wrapping Up Now, as you get familiar with how Less than Container Load (LCL) works, you can find out whether it is suitable for your shipping needs or not. Understanding the various terminologies of logistics industries is essential before you partner with freight forwarders. Stay tuned to our freight blogs for more information about the logistics industry.