x Your business is new to the import-export field and wondering what LCL goods are?
x You don't know the difference between LCL goods and FCL goods, what are the similarities and differences?
x Do you want to know what benefits LCL shipping brings? Should you choose LCL shipping?
Proship.vn , with many years of experience in the field of transporting LCL and FCL goods, will answer for businesses and shippers to know exactly what LCL is in import and export, and the benefits of transporting LCL goods. What is LCL goods, how is it different from FCL goods, what is the process of importing and exporting LCL goods,...right next.
What is LCL?
What is LCL in import and export? LCL is abbreviated as Less than Container Load, which means the goods do not fit into a full container. It describes the fact that during the process of packing goods for international transportation, the shipper does not have enough goods to fill the entire container and needs to combine the goods with other other shippers.
When consolidating many shipments from many different shippers is called consolidation, the goods being consolidated are called consol goods, and the person who performs the consolidation is called consolidator. It is easy to see that LCL and FCL goods are different from the volume, size of the goods (from one shipper), shipping conditions, costs,...
Benefits of LCL LCL cargo transport by sea
What are the benefits of LCL LCL shipping in import-export and sea transport? That is:
Helps save storage costs
Leaving goods in the warehouse and waiting until a full container is collected will incur storage costs. Using the LCL retail shipping service to ship goods immediately will help shippers save on storage fees.
Helps save transportation costs
For Shippers who are individuals or businesses when the quantity of goods is small and not enough to fill a container, they should choose the LCL retail shipping service to help save more shipping costs and be more effective. With LCL service, shippers only pay freight for the space they use in a container.
For Freight Forwarders, if a customer makes a booking with a small volume of goods, not enough for the minimum quantity of goods to be packed in a container, they can rebook (Co-loading). ) through another forwarding company (Master Consol or Master Consolidator) to directly open LCL containers to save shipping costs.
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Helps save time
Thanks to the LCL (LCL) shipping service, shippers do not have to wait until there is a sufficient quantity of goods to fill the container before shipping. Shippers can use the LCL freight consolidation service to combine packing with other shippers to quickly fill a container. Thus, goods will be transported faster and save more time.
Distinguish between LCL retail goods and FCL whole goods
What is the difference between FCL and LCL goods in import and export? Specifically:
| FCL | LCL | |
| Abbreviated name | Full Container Load: Goods in full container | Less than Container Load: Part of a container or packaged goods |
| Expense | Optimal costs | The same amount of goods, the cost of dividing the shipment into smaller batches, each shipment will have a different cost. When combined, the cost of individual goods will be larger. |
| Item size | Goods suitable for FCL are bulky and heavy | LCL goods are usually smaller and easier to move |
| Exchange rate | Volatile | More stable |
| Shipping conditions | The sender must reserve at least the entire container in advance | It is not necessary to place a cont; only part of it needs to be reserved |
| Shipper | Belongs to a shipper | Belongs to many different shippers |
| Delivery time | Faster because it only delivers to one shipper | Slower because it has to deliver to many shippers |
How does the LCL retail delivery process take place?
Below is the process of importing and exporting LCL retail goods, you need to know:
LCL retail import process
- Step 1: Sign a foreign trade contract
The exporter and importer sign a foreign trade contract after negotiating and agreeing to the terms of the contract such as type/specification of goods, unit price, payment terms. payment, applicable Incoterm conditions, loading date, etc.
- Step 2: Apply for a goods import license (if any)
The importer applies for an import license in case the goods belong to the group of conditional imports that must be licensed by the state management agency. If the imported goods do not require a license, skip this step.
- Step 3: Pay for the goods to the exporter
The importer will deposit or pay according to the previously signed foreign trade contract, after obtaining a full import license.
- Step 4: Confirm delivery and check documents
Based on Incoterms conditions and delivery date on the signed contract, the exporter will arrange and deliver the goods to the importer. After completing delivery, the exporter completes a set of export documents according to the foreign trade contract to send to the importer.
This set of documents needs to be checked accurately to ensure that the importer receives the goods smoothly.
- Step 5: Carry out customs procedures for imported goods
After the goods are transported to the port, the importer brings all the papers and documents to complete customs clearance procedures for LCL retail shipments.
At this step, if it is not possible to self-clear customs procedures for the shipment, the goods owner can use additional customs declaration services from the forwarding company.
- Step 6: Transport goods to warehouse
After receiving the customs declaration stamped and signed for supervision, the importer will bring the export slip with the barcode to receive the goods at the CFS warehouse. When you receive complete goods at the CFS warehouse for transport to the private warehouse, the LCL retail delivery process is completed.
LCL retail shipment process
- Step 1: Sign a foreign trade contract
The exporter and importer sign a foreign trade contract after negotiating and agreeing to the terms of the contract such as type/specification of goods, unit price, payment terms. payment, applicable Incoterm conditions, loading date...
- Step 2: Receive payment for goods from the importer (buyer)
Exporters receive deposits or payments according to previously signed foreign trade contracts.
- Step 3: Proceed with delivery and set of export documents
Based on Incoterms conditions and delivery date on the signed contract, the exporter will arrange and deliver the goods to the importer.
- Step 4: Send the export documents to the importer
After completing delivery, the exporter completes a set of export documents according to the foreign trade contract to send to the importer. This set of documents needs to be checked accurately to ensure that the importer receives the goods smoothly.
The article shared above by Proship has helped you understand what LCL goods are in import and export to have a more reasonable and effective shipping plan. Customers who need to transport FCL or LCL goods by road, sea, rail, etc. Contact immediately 0909 344 247 for direct advice on the services you are interested in.
