Tips to exporters while booking LCL shipments with a Freight Forwarder

5 Tips to exporters while booking LCL shipments with a Freight Forwarder

I am going to explain about some major measures to be taken before booking an LCL shipment with a freight forwarder. These precautions help you in handling an LCL cargo with a freight forwarder for smooth delivery of cargo and cost saving. What are the measures to be followed when booking an LCL shipment with a freight forwarder?

Transit Time of LCL cargo

Firstly, do not expect the cargo arrival time as faster as an FCL shipment. Because,Tips to exporters while booking LCL shipments with a Freight Forwarder since the cargo is a Less Container Load (LCL), the goods will be stuffed in to the container, once the freight forwarder receives enough cargo to make the container ‘full’ at place of receipt. Place of receipt may be near loading port or container freight station, away from loading port depends up on location of your factory where the goods to be exported are. Secondly, there may have one or more transshipment ports before arriving cargo at final destination. Chances are there for a delay of one or more days at transshipment point also. Before appointing a freight forwarder, you need to get a clear idea about the arrival of goods at destination. Let your forwarder provide you the box closing date (container stuffing date), planning vessel schedule, vessel schedule at transshipment port if any, and expected time of arrival (ETA) at destination. Once after delivering cargo to a freight forwarder, monitor properly on the schedule of arrival as per their given planning details. If the freight forwarder does not maintain their planning details, you can switch over the forwarder to another one for further shipments.

Get quote in writing.

If any haulage is involved, what would be the inland haulage charges? What is the ocean freight to the port of final destination etc. Since the cargo is a Less Container Load (LCL), Freight forwarders quote the charges per cubic meter basis (CBM basis). Learn, how CBM is calculated if weight is more.

Destination Service Charges – Beware of trap behind.

This is a very important tip to be strictly followed by any exporter while booking LCL shipment with a freight forwarder.  Get in writing from local freight forwarder about the ‘amount of charges, their counterpart at destination collects from your buyer’. This is very important because, different freight forwarders charge different amount as ‘Delivery order charges’ from the consignee abnormally in the field of LCL shipments. Because, with the understanding between the freight forwarders each other at load port and final destination, the quote at load port may be low, but higher at final destination as ‘delivery charges’. Here, once after collecting the excess amount at port of discharges from the consignee as ‘delivery order charges’ and refunds a certain amount as ‘rebate’ to the freight forwarder at load port !. So, collect all charges at load port as well as all charges at final destination from various freight forwarders and compare the charges before appointing one of them. Remember, business is relationship and your business relationship with your overseas buyer must be long term. In other words, your buyer’s loss is your loss and vice versa. However, there are very good freight forwarders working in the industry transparently.

Role of ‘Service’ in LCL shipments

In a supply chain management system, ‘service’ plays a major role. You may have a very good relationship with your local freight forwarder. However, the same service is expected to get from all his counterparts in transit as well as at final destination. The same service is required to be delivered to your overseas buyer at destination. So before finalizing freight forwarder, you can collect the local freight forwarder’s counter part office address details at final destination. Let your buyer also satisfy with ‘no objection in shipping through the said forwarder’.

Survey report to reconfirm Volume of goods

If you do not know the exact volume of LCL shipment which you have shipped, you can demand a copy of survey report issued by the surveyor in CFS. This survey report can be obtained from your shipping carrier. The said volume can be cross checked with consolidator’s invoice while paying amount to them.