A Comprehensive Guide to DDU Incoterms
LCL things: why some LCL does not charge freight?
by：VIPUTRANS
2020-09-04
LCL LCL means that after the carrier (or agent) accepts the cargo owner's consignment of less than the whole container, it will sort it according to the nature of the cargo and the destination. Consolidate the goods going to the same destination into a certain number and pack them into boxes. Since there are different cargo owners' goods assembled together in a box, it is called LCL.
This situation is used when the consignor’s consignment quantity is insufficient to fill the entire container. The classification, sorting, concentration, packing (unpacking) and delivery of LCL cargo are all carried out at the carrier's terminal container freight station or inland container transfer station. Please note that all these services are charged, but they are generally limited to the port of destination. Similarly, if it is imported LCL, the above fees will be charged at the Chinese port.
LCL can be divided into direct consolidation or transfer consolidation. Direct consolidation means that the goods in the LCL containers are loaded and unloaded at the same port, and the containers are not opened before the goods arrive at the destination port, that is, the goods are in the same unloading port. This type of LCL service has a short shipping period and is convenient and fast. Generally, a competent LCL company will provide only this type of service. Transshipment refers to goods that are not in the same port of destination in the container, and need to be unpacked and unloaded or transshipped halfway. Due to factors such as different destination ports and long waiting time for such goods, the shipping period is long, and the freight is even high. Therefore, the best choice is direct sales service, which is very beneficial to the safety of the goods.
LCL cargo generally cannot accept the designation of a specific shipping company. The shipping company only accepts the booking of FCL cargo, and does not directly accept the booking of LCL cargo. Only after the LCL cargo is consolidated through the international logistics company can it be submitted to the shipping company. For booking space, almost all LCL cargoes are transported through centralized consignment and centralized distribution of freight forwarding companies. The LCL distribution port in East China is basically Shanghai Port (Shanghai Port is unmatched by any other port in China. Advantages, there are abundant ports and legendary suppliers to choose, and the freight is the lowest). General freight forwarders can only book space from a few shipping companies due to the limitation of cargo sources, and rarely meet the needs of designated shipping companies. Therefore, when transacting LCL cargo, try not to accept designated shipping companies to avoid consignment Can not meet the requirements.
In addition, due to insufficient LCL cargo sources and high costs in some ports, freight forwarding companies adopt minimum charges for goods with small volumes. For example, the minimum charge is 2 freight tons, that is, less than 2 freight tons, and it will be 2 freight tons. Pricing charges. Therefore, when the cargo volume is small, some of these factors should be taken into account when the cargo is transacted in the port to avoid passiveness in the future. However, due to China's increased export efforts, these ports are now fewer and fewer.
So, why does the shipping cost of exporting a shipment from Shanghai Port to some ports be zero? The main reason is that the service fee charged by the port of destination is enough to subsidize the cost of exporting the entire container, so the freight at the port of delivery can be reduced to 0 yuan. At this time, a consignor may ask, isn’t the burden on foreign consignees heavier?
In fact, this is the case. Shanghai's current sea freight rate is 0 yuan, and the port of destination charges are all industry standards. They are all prices accepted at the port of destination, so you don't need to worry that the consignee will complain. Of course, some unscrupulous freight forwarders are not ruled out. In order to solicit business, they even refund the freight to customers at the port of Shanghai, and then unscrupulously charge the consignee an excessive service fee at the port of destination. This is something that the majority of cargo owners must pay attention to, because before There have been cases where the foreign consignee refused to accept the goods. Therefore, please carefully identify these freight forwarders.
This situation is used when the consignor’s consignment quantity is insufficient to fill the entire container. The classification, sorting, concentration, packing (unpacking) and delivery of LCL cargo are all carried out at the carrier's terminal container freight station or inland container transfer station. Please note that all these services are charged, but they are generally limited to the port of destination. Similarly, if it is imported LCL, the above fees will be charged at the Chinese port.
LCL can be divided into direct consolidation or transfer consolidation. Direct consolidation means that the goods in the LCL containers are loaded and unloaded at the same port, and the containers are not opened before the goods arrive at the destination port, that is, the goods are in the same unloading port. This type of LCL service has a short shipping period and is convenient and fast. Generally, a competent LCL company will provide only this type of service. Transshipment refers to goods that are not in the same port of destination in the container, and need to be unpacked and unloaded or transshipped halfway. Due to factors such as different destination ports and long waiting time for such goods, the shipping period is long, and the freight is even high. Therefore, the best choice is direct sales service, which is very beneficial to the safety of the goods.
LCL cargo generally cannot accept the designation of a specific shipping company. The shipping company only accepts the booking of FCL cargo, and does not directly accept the booking of LCL cargo. Only after the LCL cargo is consolidated through the international logistics company can it be submitted to the shipping company. For booking space, almost all LCL cargoes are transported through centralized consignment and centralized distribution of freight forwarding companies. The LCL distribution port in East China is basically Shanghai Port (Shanghai Port is unmatched by any other port in China. Advantages, there are abundant ports and legendary suppliers to choose, and the freight is the lowest). General freight forwarders can only book space from a few shipping companies due to the limitation of cargo sources, and rarely meet the needs of designated shipping companies. Therefore, when transacting LCL cargo, try not to accept designated shipping companies to avoid consignment Can not meet the requirements.
In addition, due to insufficient LCL cargo sources and high costs in some ports, freight forwarding companies adopt minimum charges for goods with small volumes. For example, the minimum charge is 2 freight tons, that is, less than 2 freight tons, and it will be 2 freight tons. Pricing charges. Therefore, when the cargo volume is small, some of these factors should be taken into account when the cargo is transacted in the port to avoid passiveness in the future. However, due to China's increased export efforts, these ports are now fewer and fewer.
So, why does the shipping cost of exporting a shipment from Shanghai Port to some ports be zero? The main reason is that the service fee charged by the port of destination is enough to subsidize the cost of exporting the entire container, so the freight at the port of delivery can be reduced to 0 yuan. At this time, a consignor may ask, isn’t the burden on foreign consignees heavier?
In fact, this is the case. Shanghai's current sea freight rate is 0 yuan, and the port of destination charges are all industry standards. They are all prices accepted at the port of destination, so you don't need to worry that the consignee will complain. Of course, some unscrupulous freight forwarders are not ruled out. In order to solicit business, they even refund the freight to customers at the port of Shanghai, and then unscrupulously charge the consignee an excessive service fee at the port of destination. This is something that the majority of cargo owners must pay attention to, because before There have been cases where the foreign consignee refused to accept the goods. Therefore, please carefully identify these freight forwarders.
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