Groupage
We understand that in the current economic climate, clients are faced with extremely high FCL freight rates, no equipment or booking space available on shipping lines, customers pay for full containers even though the space is not needed. We take that stress away from you.
LCL, the next best alternative to shipping cargo as FCL
Current challenges that customers are faced with by shipping their cargo as FCL (Full Container Load).
- Extremely high FCL freight rates
- No equipment and booking space available immediately
- Shipping Lines have a +/- 6 week waiting period
- Await full order quantity to be ready prior to shipping as FCL
- Customer pays for the entire container whether the space is utilised or not
- Most Freight Forwarders outsource LCL cargo to a NVOCC
- LCL storage fees are extremely high
C. Steinweg Logistics is one of very few international freight forwarders that is an approved NVOCC, and we do not outsource our LCL service. We offer solutions to these challenges:
- Affordable and competitive freight rates on LCL cargo
- Guaranteed space on a weekly basis
- Cargo movement from manufacturers warehouse as it is being produced
- Customer does not need to wait for the entire order quantity to be ready
- Customer only pays for their space utilised in the container
- Containers are unpacked at our secure facilities
- Customised storage and delivery options
Understanding Less than Container Load (LCL) Cargo
What is LCL Cargo?
- Seafreight terminology used to describe loads that are “Less than Container Load”, or a shipment that does not fill an entire container
- Since LCL shipments fill less than a full shipping container, they are grouped together with other cargo, and can sometimes be referred to as ‘Groupage’ shipments.
How does it work?
- In an LCL shipment, different shippers share space in a container
- The buyer only pays for the space they need to use
- Types of LCL cargo:
- Buyer’s consol – consignee purchases product from many suppliers, consolidates into a FCL to be shipped to themselves as consignee, and is responsible for all shipping charges
- Groupage – FCL container, controlled by a groupage agent, consisting of various suppliers buying space in a container and shipping to various receivers
Who is allowed to handle LCL Cargo?
- LCL cargo can only be handled by a registered Non-Vessel Operating Common Carrier (NVOCC), who acts as a carrier to shippers under their own house bill of lading.
- All NVOCC’s have a carrier code which is used to process customs clearance.
- NVOCC’s must have or be affiliated to a bonded unpack facility.
Ask your question about Groupage
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