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Basis of LCL Freight by Sea and Basis of Freight by Air
Shipping small shipments at once can be expensive, especially if you have to rent an entire container without using up all the space. With container prices increasing 5-6 times compared to 2023, you will definitely want to find a way to transport your goods as cost-effectively as possible. LCL shipping (less than container charges) can be a good way to optimize your costs. But what exactly is LCL shipping and how does it work?
LCL shipping is a shipping method in which your goods are not fully containerized – in other words, the amount needed is “less than one container”. LCL shipping allows your goods to share container space with other small shipments to form a full container between them. This way, you only pay for the space you use.
What is LCL Shipping
LCL shipping is a shipping method in which your goods are not fully containerized – in other words, the amount needed is “less than one container”. LCL shipping allows your goods to share container space with other small shipments to form a full container between them. This way, you only pay for the space you use.
Cost Of LCL Shipping
With LCL shipments, shipping costs are based on the volume of space your goods take up in the container, or sometimes the weight, whichever is greater. This tends to be given in cubic meters (CBM) or kg for weight, at a ratio of 1 CBM per 1000 kg. With FCL shipments, you will pay a flat fee for the entire container area.Although the cost per cubic meter of shipping LCL is higher, it will still be cheaper than FCL if you use less container space.
Air freight charge basis
Global importers and exporters use air freight when they need to move goods around the world quickly and reliably. While 90% of imported and exported goods are shipped by sea, air freight connects the world faster, reducing freight transit time between China and the United States from 20-30 days by sea to just three days remaining by air. International air shipping and express shipping are not the same.
Express air freight is typically handled by a single company (such as DHL, UPS or FedEx), which manages the entire lifecycle of the shipment and delivers it door-to-door in less than five years. day. Shipments shipped by express air are usually smaller than air freight (less than 1 cubic meter and 200 kg).
International air shipments can be significantly larger and may pass through multiple carriers during transit. In fact, the largest cargo plane, the Anatov 225, can carry an entire train.
Before the COVID-19 crisis, international air freight rates often fluctuated around 2 USD.$50 to $5.00 per kg, depending on the type of goods and space available. Costs rose sharply in February 2020, when COVID-19 began a period of severe disruption to ocean freight and consumer demand, with air freight rates reaching around 4.00 USD to 8.00 USD per kg.By early 2023, prices dropped to around $3.00 to $7.00 per kilogram, still higher than pre-pandemic prices, likely due to increased fuel and labor costs. See Airfreight Calculation from ASEAN.
Understanding the Difference between Freight Forwarders and Customs Brokers.
Freight forwarding is a very broad term, while customs brokering is very specific: among other requirements, PH and US customs brokers must be licensed. Many freight forwarders may also be customs agents (or have access to brokerage services), but NOT all freight forwarders are freight forwarders. Customs brokers cannot issue bills of lading or be authorized to receive shipments from foreign freight forwarders. Generally, the scope of customs brokerage is local, while freight forwarding includes both local and international services.
The customs brokerage function remains unaffected by the freight services provided by freight forwarders, whether charged per CB or per kilo. Legitimate freight forwarders encompass port-to-port services with consistent sailing and flight schedules, ensuring a reliable freight offering.
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