Get to know the vital terms of Logistics and Supply Chain Management.
Less-than-containerload shipping is one of the more important logistics methods that combine multiple shipments from different companies into one container. Businesses pay for only the share of the container, hence saving on the full cost of the container. Such companies will always benefit from this method if they cannot fill up the container due to not having enough goods but still want efficient shipping at reduced costs.
In LCL shipping, cargo consolidation forwarders or consolidators collect shipments originating from different customers of lesser volumes and aggregate them into a single container. The separated shipment will be delivered to each customer when the consolidated container is made to arrive at the destination. This saves transport costs and circumvents individual shipping arrangements by streamlining shipping and optimizing container usage.
Economical for Lower Shipment Volumes: Since the company only pays for the space it needs, LCL is an advantage for businesses with a smaller shipment volume in terms of volume.
Regular Shipments: With LCL, you do not have to fill an entire container, and hence you will get the chance to ship more frequently. This benefits companies with regular and small shipments which would experience faster replenishment and warehouse storage cost savings.
International Access: LCL helps smaller businesses gain access to international markets more easily since a good shipper will not necessarily wait for an accumulation of full container loads to clear their goods.
It Helps Save the Environment: LCL shipping reduces the requirement for several containers and thus implies less carbon emissions and a smaller environmental footprint through shipment consolidation.
Although shipping in LCL is much more efficient, consolidation and deconsolidation add a couple of extra steps to make FCL faster than it is, so there is that. Then there’s additional handling, where goods are loaded and unloaded with other shipments along the way, thus affecting transit time.
Less-Than-Containerload shipping solution is a cost-effective shipping solution for small shipments that grants businesses access to efficient worldwide transportation without the commitment of full container sizes. LCL saves the costs of companies, enriches their supply chain flexibility, and also promotes greener logistics.