Positive and negative points of the LCL expedition
Positive points
First, when you are shipping LCL, you only pay for the quantity you want, not a fixed price like FCL. Also, shipment of fewer goods at closer intervals means you pay less in terms of storage. Secondly, LCL is more affordable than air freight so if you are not limited by time for your
shipment, you can reduce shipping costs. Finally, when a container capacity is limited (in peak periods in particular) LCL can be more accessible and time-efficient than FCL.
Negative points
First, shipping LCL takes time because the goods must be charged and discharged in the container. Second, LCL is more expensive than FCL per cubic meter, and in some cases doubles. Also, if the customs clearance of other cargo is delayed, the cargo may be delayed.
LCL shipments are processed more, increasing the risk of damage and loss.
LCL Shipping costs
The cost of LCL is primarily measured by volume and is usually measured in cubic meters (CBM). The more space you need, the more money you will pay. However, container ships can carry significant weight, so volume is the most important element of the total cost, but it is also charged by the weight of goods.
LCL shipping costs include several factors.
LCL or Air Freight?
The difference between LCL and Air Freight
Many importers and exporters wonder whether it is better to choose LCL or Air Freight when you have a small shipment.
In fact, it depends in part on how much time you can spend for your delivery and how much you are willing to pay.
Let's say you're shipping 500 hockey packs from Shanghai to Los Angeles (you might be wondering, this is about 0.06 CBM and 85 kg).
These aren't exactly the prices, but shipping a hockey pack by LCL costs about $ 400, but by air it costs $ 600.
Double it to 1,000 hockey packs. LCL is currently $ 475, but Air has risen to $ 900. Doubled again, 2,000 hockey packs are still $ 475 in LCL, but Air can be up to $ 1,570.
As shipments increase in height & weight, airfares will increase more efficient than LCL rates. In addition, weight increases have an even greater impact.
Alternatively, air transportation will be faster. In this case, the shipment will require 7 to 9 days by air and 25 to 30 days by LCL. More, it is not an exact delay of the transit time, but they do show the difference between air freight and LCL transportation.
How to choose between air Freight and LCL
When you deliver in LCL, you may be debited for at least 1 m3. This approach means that even when you have a smaller shipment, you may not get a decreased price.
Both air and LCL prices are calculated through each weight and quantity. But the weight is the maximum limit for air critical factor—that is to say, minuscule will increase in weight since they approach better prices.
In LCL, however, space is more important than weight. In conclusion, an LCL shipment will be more economical for the items with a high weight.
Air cargo rates and transit times do not differ significantly depending on the delivery city. For illustration, air freight from Shanghai to Los Angeles costs are about the same as air travel from Shanghai to New York. For LCL, however, this difference in distance increases both cost and transit time.
LCL or FCL?
However, if the load is not heavy, LCL is the ideal shipping method.
LCL is great for small packages, but it can be worth buying a complete container even though you are not having enough cargo.
Which is the best method for you?
This is due to the fact that LCL by CBM is more expensive than FCL. Therefore, if the shipment reaches a certain quantity, a full container may be more appropriate as you can enjoy the benefits of FCL transport, such as shorter transport time and reduced risk of damage, at a slightly higher price.
Note: When shipping from Amazon's warehouse, it's usually easier to book an LCL delivery pickup. Therefore, even if you ship the FCL and save money, you may endure additional delay charges due to the delayed stock date.
The tipping point for your choice
In practice, this depends on the size of the load, but in general, FCL can be considered when the amount reaches about 10 CBM.
Additional costs for the shipper
Wrap and labelling for AMAZON shipper
When shipping items to an Amazon FBA warehouse, they must be labelled and palletized according to Amazon's requirements.
Labeling products at the factory is often the most efficient and cost-effective option.
However, before palletizing, make sure you are familiar with Amazon's standards and requirements.
Import Bonds
A customs deposit must be submitted every time you import into the US. This is essentially insurance from customs and border protection if the society does not pay.
If you send few shipments, choose a disposable bond. Annual bonds are certainly better for frequent shippers.
