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Those things about the loss of container fees in LCL shipping

by:VIPUTRANS     2021-03-13
When shipping LCL, it is generally necessary to calculate various expenses in advance, including the loss of shipping charges. So what is the LCL loss fee? What is the calculation standard? How can we avoid the occurrence of box loss fees? 1. Definition of loss of cabin fee Loss of cabin fee is called DEAD FREIGHT in English, also called 'empty cabin fee' and 'lost warehouse fee'. Generally, shipping companies will indicate the loss when signing a voyage charter contract (FIXTURE NOTE). The cabin fee is 100% freight, so as to ensure that the charterer will not be out of stock at will and cause losses to the shipping company. Usually, the loss of cargo that we often encounter is caused by sea freight LCL. In the sea freight export business, when it is close to packing (such as 1 working day before the cut off, the deadline for different ports and different freight forwarders The time may be different), the cargo cannot be shipped according to the scheduled shipping schedule due to the shipper/consignor’s reasons, resulting in the LCL company’s space being vacant, and the LCL company will charge the booking party to make up for the loss. This is the loss of cabin fee. 2. Why do we need to collect the loss of cabin fee? The LCL company can only book and operate the shipping company according to the FCL method. No matter whether the box is full or not, the LCL company must pay the shipping company at the price of the FCL. In other words, the cost paid by the LCL company to the shipping company is fixed, so the LCL company's profits will be maximized only when the containers are filled. If the space is vacant due to the shipper/consignor, the LCL company is likely to incur losses or greatly reduce profits. Therefore, the LCL forwarder may charge the shipper/consignor a loss fee. 3. How to calculate the loss fee? (1) Algorithm based on full load (standard cubic number): the calculation of the deficit fee is based on the cost of the vacant space. The specific calculation formula is: deficit fee u003d booking billing cubic x (full container shipping fee + full container shipping port Cost)/standard cubic number. For example, the FCL ocean freight is 2000usd (the freight cost paid by the LCL company to the shipping company), the FCL port miscellaneous fee is 800usd, the container type is 20GP, and the number of billing parties for the defective cargo is 8CBM, then: (2000+800)/25x8u003d896usd. (2) It is simply calculated and collected according to the rate when quoting the customer: Loss charge u003d price per cubic meter x number of billing parties for the lost cargo. For example, if you quote 50usd/cbm for the customer and 5cbm for the lost cargo, you will lose Cabin feeu003d50x5u003d250usd (3) Lost cabin feeu003d(FCL cost/the number of billable parties in the cabinet) x the number of billable parties for the lost cargo. For example: the cost of the whole container is 2000usd, the number of billing parties for the goods in the cabinet is 20cbm, and the number of billing parties for the deficient cargo is 8cbm, then: the loss charge u003d 2000/20x8u003d800usd. The above three methods have different calculation results. Usually the third method calculates the least loss of shipping charges, but very few LCL companies will calculate the loss of shipping charges according to the first method. Unless it is an important customer with good cooperation, the LCL company may consider the third, or even reduce or exempt. Loss of cabin fee 4. What is the reason for the loss of cabin fee? How to prevent it? (1) Untimely warehousing due to production, quality inspection, commodity inspection, logistics and other reasons is the most common reason. The goods are too late to enter the warehouse or temporarily cancel the shipment, but the booking person does not cancel the booking in time. Preventive measures: The shipper/consignor carefully arranges in advance and closely tracks the entire process of delivery and arrival to ensure timely and timely entry into the warehouse before the interception. If you find that you can't keep up, you should communicate with the LCL company in time to see if the LCL company can extend the cut-off time, or directly arrange an extension to the next ship. (2) It is very common that the customs inspection and release are not timely or not released. The customs inspection can easily lead to the failure of the ship, especially when the customs declaration is too late or the goods are defective. Preventive measures: declare as soon as possible, declare truthfully, and make declarations in a standardized manner, so that the goods are consistent with each other, and the declaration documents must look professional, formal and standardized, and the elements of the declaration must be clear. If you have any questions, communicate with the customs broker in a timely manner and reply to the customs in a clear and timely manner. (3) A large proportion of the actual goods are overweight/reduced/overweight. 'Overweight' may cause the cargo to fail to fit; 'shrinking' may cause the box to be underfilled and waste storage space; 'overweight' may cause the box to not be full and waste storage space. Preventive measures: When booking space, the LCL company must carefully check the weight and size, and emphasize the importance and necessity of providing accurate cargo information with the shipper/consignor. If there is a big difference between the actual situation of the goods and the information entrusted by the customer, timely feedback shall be provided to coordinate the solution. (4) After the goods have entered the warehouse, it is discovered that the goods themselves cannot be carried, such as oversized or overweight goods, certain liquids that cannot be shipped in a single container, semi-dangerous goods, perishables, etc. Preventive measures: The consignor/consignor should confirm with the LCL company in advance whether the goods can be shipped as normal cargo. (5) Cancellation of shipment but not timely cancellation of booking space Due to the negligence of the shipper/consignor or the forwarder, failure to cancel the booking space in time, resulting in loss of shipping space. Preventive measures: If the shipment is cancelled, the shipper/consignor should promptly report back to the LCL company and cancel the booking. LCL companies can adjust the cabinet type or arrange goods with peers to prevent empty spaces. Loss of cabin charges can be avoided, as long as the shipper/consignor can communicate with the freight forwarder in advance. If there is a loss of shipping fee and how much to charge, the customer can discuss with the LCL company and apply for no or less charge. The LCL company will comprehensively consider the importance of the customer and the cooperation situation, market conditions, profit and other factors, and deal with it as appropriate.
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