7 Risks about LCL in Sea (OCEAN) Shipping

LCL (Less than Container Load), which is what we usually call LCL, refers to the operation that when a single customer's export goods are not enough to fill a container, the goods will be loaded into a container with the goods of other customers for shipment. Freight for LCL goods is calculated based on volume or weight, and the unit price varies according to different routes, items, and ports. LCL meets customers’ needs for small-volume, diversified cargo shipments and can effectively reduce the shipper’s transportation costs. It has its own advantages over FCL transportation. However, in actual operation, since LCL involves multiple customers, there may be certain risks during frequent loading and unloading.


1. Risk of shipment delay
Because the LCL operation requires waiting for the goods from multiple customers to be ready before they can be packed and shipped. During this period, as long as one customer's goods cannot be delivered on time, it will cause the shipment of the entire container to be delayed, causing the risk of breach of contract in the trade contract.

2. Safety of goods 
Since multiple customers use the same container, damage of the goods will inevitably be caused during multiple loading and unloading processes, and the goods may even be confused with each other, causing a series of subsequent problems.

3. Ports transfer
 LCL cargo issues that needs to be transferred, it also involves a series of operations at the transfer port. If there is port congestion, poor cargo flow, etc. at the transfer port, it will inevitably cause subsequent delivery delays.

4. Risks of Information communication
Each cargo owner may have different requirements for export cargo transportation, desired delivery time and other information. During the communication and coordination process between freight forwarders and these cargo owners, if the information is not communicated in a timely or accurate manner, it may have an impact on the transportation of the full container of goods.


 
5. Risk of Cargo Information Error 
Due to the wide variety of LCL goods, if the volume and weight of some goods are incorrectly recorded when loading, unloading, and entering the container, it may cause other goods to be unable to enter the container smoothly, requiring the placement of the goods to be readjusted or the container to be replaced, which will inevitably lead to delays in shipment.
 
6. Risks of Customs Inspection 
As we know, LCL involves a variety of goods, and the customs inspection rate is relatively high. Although the customs may only require inspection of a certain type of goods in the container, the shipment of other goods will also be affected. While the customs is conducting focused inspections, other goods can only wait.

7. Risk of the Different Port Fee Disputes
cargo owners may have disputes over how to bear some additional costs at the port of destination, such as how to share warehousing costs, unpacking costs, etc. Is it based on volume or weight, or some other method? If these details are not clarified in advance, they will also have an impact on the subsequent delivery of goods.



In short, in order to avoid various risks during the consolidation process, sufficient communication should be carried out before consolidation, and a reliable freight forwarder who is familiar with the entire consolidation process should be determined to cooperate to ensure the smooth performance of the trade contract. UOA shipping can help LCL smooth shipping in the sea shipping to UK USA CANADA and European countries. 
 
 

 
 

Leave a Reply

Your email address will not be published. Required fields are marked *