Fantastic Freight Forwarder Agent For LCL Shipping

LCL Shipping – The Ultimate FAQ Guide

Introduction

If you’re a supplier or purchaser, you’ve probably come across the term LCL shipping while preparing to import or deliver small amounts of products.

If you have a small quantity of cargo to ship offshore, less than container load shipping is the most cost-effective choice.

This FAQ guide is here to provide all the necessary information related to LCL shipping.

The article contains LCL shipping information including a simple definition, followed by advantages, drawbacks, working principles, shipping choices, and so on.

By the completion of this guide, you’ll be able to determine if LCL shipping is right for you.

Table of Contents

1. What Is LCL Shipping?
2. What Is The Less Than Container Load Shipping Process?
3. How Long Does Less Than Container Load Shipping Take?
4. What Are The Types Of LCL Shipping?
5. What Are The Documentations Involved In A Less Than Container Load Shipping?
6. Who Issues The LCL Shipment Documents?
7. What Are The Most Often Used Incoterm In LCL Container Shipping?
8. What Are The Advantages Of LCL Container Shipping?
9. What Are The Drawbacks Of LCL Container Shipping?
10. What Is The Dissimilarity Between FCL Shipment and LCL Shipment?
11. Is LCL Shipping Rates Cheaper?
12. How LCL Shipment Charges Are Calculated?
13. What Are The Factors That Determine LCL Shipment Charges?
14. What Are The Common LCL Shipment Charges You Need To Pay?
15. Are There Surcharges In LCL Shipping Quotes?
16. Who Clears The Customs Charge In Less Than Container Load Shipping?
17. Who Is Accountable For Customs Clearance In Less Than Container Load Shipping?
18. What Are The Shipping Container Types Used In LCL Shipment?
19. How Can I Reduce LCL Charges In Shipping?
20. Why Is There A Difference In-Transit Time Between FCL And LCL Shipment To The Same Destination?
21. Is LCL Shipment Insured?
22. Are There Restrictions On Imports Over LCL Shipment?
23. Can I Track My Cargo In LCL Shipment?

1. What Is LCL Shipping?

The term refers to shipping small sea freight packages that do not need a container’s maximum capacity.

Because of this, an LCL container is also known as a consolidated container.

This refers to the global LCL transportation of cargo using water as the primary mode of transport.

If you can’t afford a full crate, less than container load shipping rates is an option.

2. What Is The Less Than Container Load Shipping Process?

The LCL shipping process is rife with complications.

International logistics includes sourcing goods, delivering them to the distribution port, and processing customs duties and taxes.

For a beginner in the industry, it could be time intensive.

To make LCL shipping more accessible, follow the steps below.

Step #1

To begin with, identify and source the products you want to ship.

Once you’ve sourced materials and agreed on the terms of sale, you’ll need to find a freight forwarder agent who is ready to provide LCL shipping.

The forwarder agent will then facilitate you in preparing for the shipping of your products to any location on the planet.

Step #2

Once the delivery arrives at the freight forwarder’s warehouse, they go through a series of procedures.
It is done to ensure that they are ready for distribution.
They offload the goods from the truck, evaluate them, and compactly bundle them.

Step #3

Finally, customs clearance will be completed.

For all this, the customs office will request you for –

• Commercial invoice
• Lading bill and sea waybill
• List of packing materials

The freight forwarder will handle both of these documents.

Customs officers will inspect and evaluate the things you’re sending.

This is to calculate the amount of taxes and duties that would be incurred.

After that, you must pay the bill that was given to you.

Then, your LCL container is loaded onto a ship and shipped to the port of destination at this point.

Take into account that a freight forwarder is in charge of choosing a reliable carrier when you hire them.

And, if you’re transporting with HART Worldwide as your freight forwarder, it’ll use its vast list of contacts to find the best carrier for you.

HART can ship your items to the desired place through cheap less than container load shipping rates.

Step #4

After that, clearing customs at the port of destination is done.

You should now have all of the necessary documentation for the shipping to be approved for entry into the destination.

Customs agents must inspect the containers to verify that they do not violate any regional restrictions.

This should be acknowledged that you will also be expected to pay the relevant customs authority for customs taxes and duties.

Step #5

Finally, transfer the LCL cargo from the port to the warehouses.

The products will be shipped to your preferred location from here.

And there you have it, your package has been delivered.

3. How Long Does Less Than Container Load Shipping Take?

4 weeks to 8 weeks.

It is entirely directly proportional to the distance between both the shipment’s arrival and departure ports.

LCL delivery takes much longer, even four to eight weeks.

4. What Are The Types Of LCL Shipping?

There are mainly two types of LCL shipping methods available.

Standard LCL Shipping

Standard LCL shipping is mainly the traditional LCL shipping type.

It takes much more time than express LCL shipping.

It also charges less than express LCL shipping.

It doesn’t maintain any fixed schedule so delay in shipping is most likely to occur.

When the container is fully loaded, then it starts sailing.

Express LCL Shipping

LCL Express Service offers consumers quick travel times.

It maintains regular sailing schedules, secure LCL shipping service, and a delivery guarantee within schedule.

And these result in smoother shipping by sea.

Express LCL shipping is up to 75% cheaper than conventional air cargo, and 30% quicker than typical LCL shipping.

5. What Are The Documentations Involved In A Less Than Container Load Shipping?

There are multiple documents involved in less than container load shipping.

Let’s start with the remarkable ones.

Freight Quote

The shipping process begins with your freight quote.

It demonstrates the willingness of your freight forwarder to provide the guaranteed service.

The freight price is dependent on the details you have supplied.

It includes weight, size, type of product shipped and other factors, and the overall shipping rate.

The final price would probably be equal to the first freight quotation given by carriers or logistics companies if the details provided is genuine.

Bill of Lading

The bill of lading is the most critical of all international shipping documents.

There is a form of formal consent from the shipping company to the consignee.

This document certifies that goods in the form of cargo were received for shipping to a specific destination on board.

A BOL is often authorized by the shipping department of the Carrier company or, in some cases, the ship’s owner.

The term “bill” refers to the timetable and the supply expenditure, while “loading” refers to the freight processing onto a ship.

Therefore, a “lading letter” indicates the freight is sent to a designated destination at a fixed cost.

Certificate of Origin

The document specifying the place of origin of the goods being shipped is a certificate of origin.

This authentication is used primarily to verify the origin of imported goods into the area.

It should always comply with the trade and customs requirements.

It is used as a method to determine tariff treatment.

Realize that most modern countries place different tariff rates on products imported from different countries.

Some countries require importers to provide this document to validate the goods for customs or commercial authorities.

Shipper’s Export Declaration (SED)

Shipper’s Export Declaration (SED) is required for exporting goods from most countries if any single commodity exceeds $2,500.

The Census Bureau uses this information for statistical purposes.

The Census Bureau is underway to make the electronic application for SED compulsory.

This makes the electronic transportation record management of your business all the more justifiable.

Packing List

The list of export packages is usually more comprehensive than domestic packaging lists.

Below are some examples of the list of packages:

• Freight costs in US Dollars
• Company’s and shipper’s contact info
• Profile of the company
• Actual name and signature of receiver
• Overview of the detailed product
• Volume of cargo
• The chargeable weight
• Commodity sourcing origin

The shipper typically uses the packing list to monitor the weight and volume of the package.

Customs agents in the US and abroad can also use this checklist.

Commercial Invoice

As an assurance of sale, a Commercial Invoice is used.

It contains material such as:

• The importer’s and exporter’s information.
• The receiver’s details
• The informing groups, for example, customs officials.
• The materials are identified, including the HS code.
• The worth of the good that would finally be charged for customs duty.

Certificate of Inspection

A certificate of inspection is essential for some buyers and countries.

This certificate ensures that the shipped goods are genuine.

The inquiry is usually carried out by a private entity.

A certificate of inspection must be issued by an independent verification body.

6. Who Issues The LCL Shipment Documents?

The freight forwarding company issues all the LCL shipment documents on your behalf.

You need to provide all the details of your shipment to your forwarding agent so that he can do the paperwork for you.

7. What Are The Most Often Used Incoterm In LCL Container Shipping?

EXW, FOB, CFR, and DDP are the most often used Incoterms for LCL container shipping.

In other words, the needs of buyers are taken into account by FOB and EXW.

You may choose your own transportation sponsor.

For CFR and DDP the case is the opposite.

The seller prefers the forwarder here, who then arranges the transportation.

EXW and FOB enable you to arrange transportation, scheduling, and costs more than CFR and DDP.

8. What Are The Advantages Of LCL Container Shipping?

LCL container shipping has many advantages:

• You just pay for the sum you need when shipping LCL, not a fixed amount like FCL.
• Shipping less means less expenditure on warehouse space.
• LCL container shipping is much cheaper than air freight.
  You can reduce delivery prices significantly if you have some time to prepare for the shipment.
• LCL container shipping can be found better and quicker than FCL during peak season when capacity is nearly complete.

9. What Are The Drawbacks Of LCL Container Shipping?

Here are the major disadvantages of LCL container shipping:

• It is required that LCL shipments are loaded and unloaded, which extends several days to the journey.
• LCL container shipping is more costly per cubic meter than FCL – twice as many, even.
• Customs disruptions of other shipments may result in your products being slowed.
• The handling of LCL container shipping products raises the risk of damage.

10. What Is The Dissimilarity Between FCL Shipment and LCL Shipment?

These are two typical words of shipping in the global logistics sector.

FCL means the full loading of the container.

This means a container is only used by one shipper or for goods of one user.

LCL means less than the loading of the container.

This ensures that multiple consumers share a container.

This means delivered in one container various orders from different customers.

Don’t be tensed as you don’t have to find someone to share the container.

This would be done by the shipping agent or the forward agent.

The concept appears quite easy.

Let’s find out the differences between them.

LCL Is Less Expensive Than FCL For Short Quantity Shipment

If you purchase goods from the retailers, you know it is more so.

More and more amount you purchase, the lower the price.

You remember the same is true for maritime transport.

The more you book, the less expensive the offer you get.

Therefore, FCL makes you pay less than LCL for transportation on the sea.

Moreover, the freight forwarder likes shipping containers as a whole.

For them, handling an FCL is much simpler than handling LCL.

For LCL, separate shipments from various clients must be consolidated into a single container.

And to organize several papers for a single container.

This will complicate LCL further.

But for a shorter quantity, you can save a lot by choosing LCL shipping over FCL as LCL shipping rates are much cheaper in this case.

FCL May Have Been Supplied Faster Than LCL

And for many reasons, LCL can be delayed.

You realize that for LCL, separate packages must be consolidated into a single container, various records must be processed and the goods in the destination port sorted.

So for LCL, it is significantly more difficult.

And it has the tendency to be delayed at any stage of these actions.

Though, express LCL shipping delivers products much faster than standard LCL shipping.

FCL Could Be More Secure Than LCL

For LCL, the chance of harm and damage is expected to be greater.

Goods can be revealed when consolidated by the freight forwarder in the loading terminal.

And even when the distributor arranges the goods at the port of destination it will be revealed twice.

Even though FCL has many benefits, LCL will help you keep your stock down.

You are aware that you cannot afford complete containers of goods that you purchase at the start of business.

It will therefore be useful for you to select LCL.

You also are going to save certain prices on sea transport.

You should not care about buying a ton of goods to load a container fully.

To know better about them, watch the video –

11. Is LCL Shipping Rates Cheaper?

Yes, in some cases.

LCL shipping rates are much cheaper than air transport, so you can significantly lower delivery rates if you have longer to prepare for your order.

If you are importing small quantity products such as less than 15 CBM, LCL shipping rates will provide you better cost than FLC shipping.

LCL can be easy to find and quicker than FCL during peak season when capacity is nearly plentiful.

Consider HART Worldwide to ship your goods to the desired place through cheap less than container load shipping rates.

12. How LCL Shipment Charges Are Calculated?

The LCL shipment charges are mostly measured by volume and typically by cubic meters.

The larger you need, the more volume you are charged with.

Weight is also a consideration.

But as container ships can carry huge amounts of weight, volume is typically more important at total LCL shipment charges.

Take HART Worldwide, a leading logistics service for cheap less than container load shipping rates yet quality delivery.

13. What Are The Factors That Determine LCL Shipment Charges?

LCL shipment charges depend on the following factors –

• Package size and length,
• Actual weight and volumetric weight of the parcel,
• Time of shipment,
• Worth of goods,
• Type of goods,
• Destination distance.

To avail of cheap less than container load shipping rates with the best delivery service, consider HART Worldwide as your freight forwarding service.

14. What Are The Common LCL Shipment Charges You Need To Pay?

Common shipping charges, found in LCL shipping quotes are stated as follows-

• Duty surveillance surcharges
• Routing fees Customs Brokerage
• Container Transfer Station for delivery and pick-up (LCL only)
• Insurance Payment
• Terminal management fees
• Charges for accessory services

Be mindful of cheap foreign shipping by sea as you prepare for your shipment.

15. Are There Surcharges In LCL Shipping Quotes?

Yes, there are.

LCL shipping quotes are subject to additional charges.

Such forms of maritime freight surcharges include energy surcharges, surveillance charges, etc.

LCL shipping quotes also include other charges that also include transportation from port to port.

16. Who Clears The Customs Charge In Less Than Container Load Shipping?

Usually, the importer or the recipient of the LCL shipment clears the customs charge in less than container load shipping.

17. Who Is Accountable For Customs Clearance In Less Than Container Load Shipping?

Normally, the buyer or the receiver of the LCL shipment is responsible for the customs clearance in less than container load shipping.

18. What Are The Shipping Container Types Used In LCL Shipment?

Most of the containers in the LCL shipment are three kinds.

• The weight carrying ability of the 20’GP is more than bulky cargo.
  Minerals, explosives, computers, etc. are all bulky products examples
• 40’GP is planned instead of lightweight cargo to carry voluminous freight.
  For instance, devices, wheels, toys, etc are all voluminous goods
• Until the load hangs over the sides, there will be up to 25 Euro Pallet Stacks on the base of the 40-foot-high-cube

19. How Can I Reduce LCL Charges In Shipping?

There aren’t many tactics for lowering LCL charges in shipping.

The most effective trick for lowering LCL charges in shipping is to carefully prepare the package.

There should be no open space inside the parcel.

Since the volumetric approach is also used to calculate the LCL charges in shipping, be mindful of the package packing.

Try taking advantage of coupons and discounts when they are available from the carriers and using them later on your LCL shipment.

This is how you can lower LCL charges in shipping.

20. Why Is There A Difference In-Transit Time Between FCL And LCL Shipment To The Same Destination?

As for full container load, the container holds merchandise with a single supplier and purchaser.

It is not modified until assembled at the Port of Load and is delivered as is to the Port of Discharge.

In the case of LCL freight, the freight forwarder agent will combine cargo from several shippers and distributors into a single container destined for different destinations.

As a result, LCL shipment takes longer than FCL moving to the very same location.

21. Is LCL Shipment Insured?

To a certain extent, indeed.

The statutory commitments of some LCL shipping companies limit their liability for cargo risks.

The constraint varies by carrier, but it is usually very small.

In this regard, it is usually advised that the importer ascertain the exact nature of the constraint with their LCL carrier prior to shipping.

Collecting additional shipping insurance is often necessary to maintain the full protection of the goods when in transit.

22. Are There Restrictions On Imports Over LCL Shipment?

Any means of transportation are subject to limitations.

Potentially hazardous goods are often restricted in LCL shipment.

This means that you’ll need a dangerous goods declaration form on hand to clarify that what you’re shipping is potentially hazardous.

You’ll also need to take extra care to ensure the safe delivery of certain goods.

A list of prohibited items in LCL shipping is stated below –

• Powder
• Compressed Gas
• Animals
• Caustic substances
• Alcohol
• Sex toys
• E-cigarette
• Firearm
• Flammable and combustible
• Lighter
• Knife
• Drugs

These are extremely prohibited in LCL shipping.

23. Can I Track My Cargo In LCL Shipment?

Most of the time, indeed.

To track an LCL shipment, you must first identify the shipping line that is transporting your cargo, as well as the container size, reservation number, or shipment number.

The Bill of Lading contains the data and information.

The booking and bill of lading numbers are normally found on the top right, and the shipment number is usually listed under the column “Marks & Nos.”

Visit your carrier’s website to track your LCL shipment.

Conclusion

Hope this FAQ guide assisted you with all the details you were searching for on the internet.

HART Worldwide is one of China’s largest and most experienced freight forwarders.

They will assist you with shipping LCL shipments to various destinations around the world.

LCL shipments can appear to be one of the most challenging types of cargo transportation.

However, it is a big relief for traders who have small amounts of cargo to carry.

The prices are reasonable, and they will connect you with the best service providers.

For LCL shipments, HART Worldwide provides a cutting-edge monitoring system that will ensure the cargo arrives safely.

Aside from thats a customer service department will help you with any questions you might have.