Delivery of groupage cargo from China (LCL)
The first option is suitable for large customers who purchase large quantities of goods and can fully load one or more containers with cargo from one supplier. For LCL delivery from China, the partners of the logistics company pay only for the volume in the container, which is actually occupied by the cargo. This is convenient for novice entrepreneurs and those who are engaged in small-scale wholesale purchases of various products from different manufacturers.
FCL is a full container load. LCL – Multiple small batch assembly. This is an international terminology that is accepted in different countries. It is used to denote a variety of sea container intercontinental and interstate transportations. When choosing LCL, a small amount of goods is delivered from China to Ukraine by consolidating several orders. Specialists of logistics companies are engaged in the formation of containers, and not only the economic feasibility of cargo transportation, but also the safety of goods during transportation depends on the quality of their work. Both when choosing the FCL option and when using consolidated shipping, 3 standard container types are used. Almost all importing companies from China use standard varieties, which cover most of the world’s freight traffic.
However, the experience of our logisticians speaks of the presence of a fairly large number of pitfalls when ordering groupage cargo. Thanks to timely information received, our clients never overpay for unnecessary services and intermediaries’ extra charges. Inexperienced customers of transportation without the help of professionals can significantly overpay even for the initially more profitable LCL option. In particular, if you take into account all the charges for the formation of a groupage cargo with a total volume of more than 15 feet (in a 20-foot container), then an FCL order with partial load will be more profitable.
Features of pricing
When choosing FCL delivery from China, the cost of transporting an individual container depends on its dimensions and the distance between the points of departure and destination. If these parameters are known, then the price of transportation will be fixed. LCL groupage cargo has a more complex pricing system, and the cost depends on the number of cubic meters occupied in the container by the batch. With LCL, the cost of one cubic meter will be higher (2-3 times) than when renting a whole container, but if it is impossible to collect a large volume, then this option will be much more profitable (especially in comparison with air transportation). Also, sometimes the rate of delivery of groupage cargo from China to Ukraine is affected by the presence of an advance payment (when making an advance, the rate is reduced).
Naturally, when loading several LCLs into one container, the labor costs of logisticians (for collecting, assembling, loading, unloading, etc.) will be much higher than when sending FCL, therefore the cost of transporting one cubic meter when delivering a groupage cargo from China to Ukraine will be significantly higher.
Advantages of groupage cargo transportation
For novice businessmen who do not yet have the opportunity to import a large number of goods from China, the option of delivering cargo from China using the formation of a prefabricated container is suitable. You can start even with a small batch, and find out what are the nuances when working with a supplier, study the quality of products, the speed of delivery, and the demand for these items in Ukraine. For dynamic entrepreneurs who are just planning to take their market share, the most attractive option is to quickly deliver specific goods without maintaining stock. For a more efficient use of capital, it is necessary to minimize the “frozen” funds, and fast logistics allows us to do this in the best possible way.
What is more profitable than FCL or LCL?
To answer this question, you will need to determine the exact volume of goods and the supplier’s price for a specific batch. Manufacturers of products in China can often change the conditions significantly when the volume of the order decreases (as well as when the order increases), so you need to fix the price and quantity at the initial stage. After understanding the exact volume, you need to compare the number of cubic meters of cargo with the volume of the main types of containers (20-feet). Study the tariffs for the formation of LCL groupage cargo (price per cubic meter) and multiply by the amount of volume occupied by your goods (also in m3). If the result is lower than the fixed cost for transportation of the whole FCL container, then choose partial load. However, with a batch that takes more than half of the volume, in most cases it is more efficient (and safer for the safety of valuables) to order FCL.
Several recommendations for organizing effective delivery of cargo from China to Ukraine:
- Plan shipments in advance (schedule deliveries).
- Be sure to load the goods together with the pallet (this will help with unloading and minimize the risk of mechanical damage).
- Optimize your packaging. Often up to 30% of the size is taken up by cardboard and other packaging materials, try to avoid overpaying for this by increasing the load density.
AF-Group managers will be happy to tell you about other nuances when importing products from China and will help you develop an effective and profitable system for replenishing stock with products. Just call the company phone number listed on the website and get detailed information about the conditions, tariffs, and timing of delivery of goods from China to Ukraine.