What are Sea Freight Consolidation and Defective Fees? How to calculate the loss fee?

In international trade, companies often fail to ship goods due to various reasons, so they have to bear the corresponding LCL loss. The most important thing is that many shippers are not very familiar with these costs, so they are hard to guard against. Today, we would be glad to show some relevant knowledge about the cost of LCL in the process of cargo transportation.

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What is LCL?

CL CARGO= LESS CONTAINER LOAD, LCL cargo specifically refers to small quantity goods that are not filled with a full container (20’/40/45). Usually, the bulk cargo assembly contractor (consolidator) collects the goods separately and gathers them at the container freight station or inland station, and then assembles the goods of two or more tickets into one container, and also at the destination container freight station. Or inland station unpacking and delivery separately.
For this kind of goods, the carrier has to bear the packing and unpacking operations, and the cost of packing and unpacking is still charged to the cargo side. The carrier’s responsibilities for LCL shipments are basically the same as for traditional breakbulk shipments.

What is the LCL shipping fee?

In the process of LCL export by sea, after 11:00 noon on a working day before the cut-off date of the order, the goods cannot be shipped in time due to the reason of the booker, resulting in the empty space of the LCL company. The fee was charged by the cabin crew to make up for the loss. How to calculate the loss fee? The calculation of the lost space fee is based on the cost of the vacant space, and the specific calculation formula is the lost space fee = booking billing cubic x (full container sea freight + full container port of departure fee) / standard cubic number.
Note: Standard cubic number: 25/20′ 50/40′ 60/40’HQ


Common reasons and preventive measures for dead freight

(1) The cargo owner is too late to enter the warehouse or temporarily cancels the shipment and the booking party fails to cancel the booking in time.

Prevention: Freight forwarders are required to maintain regular communication with the cargo owner before the customs cut-off date, and provide timely feedback. And inform the owner that he has the responsibility to notify, otherwise, there will be a loss of carriage fee.

(2) Larger proportion of oversquare/shrink/overweight.

Precautions: Freight forwarders are requested to request the owner’s booking bill of lading to be as consistent as possible with the actual cargo, and to notify in time if there is any change.

(3) After the goods enter the warehouse, it is found that the characteristics or specifications of the goods themselves cannot be transported.

Such as “liquid/dangerous goods/oversized and overweight items”. Prevention: Please inform the freight forwarder that the cargo owner will not accept liquid/dangerous goods/semi-dangerous goods and oversized and overweight items must be confirmed in advance.

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