What is meant by "ocean freight consolidation" and "underutilization fee"?
Created on 12.12
Today, the editor will share with everyone some relevant knowledge about the loss of space fees in sea freight consolidation during the transportation of goods.
What is LCL (Less than Container Load) cargo?
CL CARGO = LESS CONTAINER LOAD, LCL specifically refers to small shipments that do not fill a whole container (20'/40'/45'). Typically, it is consolidated by a consolidator who collects cargo separately and concentrates it at a container freight station or inland station, and then assembles two or more shipments into one container. Similarly, the cargo needs to be unpacked and delivered separately at the destination's container freight station or inland station.
For this type of cargo, the carrier is responsible for the loading and unloading operations, and the loading and unloading fees are still charged to the shipper. The carrier's responsibility for consolidated cargo is essentially the same as that for traditional general cargo transportation.
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What is the ocean freight consolidation shortfall fee?
In the process of exporting LCL (Less than Container Load) by sea, if the goods cannot be shipped in a timely manner due to the reasons of the booking party after 11:00 AM on the working day before the cut-off date for booking and cargo, resulting in vacant space in the LCL company, the LCL company will charge the booking party a fee to compensate for this loss.
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How is the loss cabin fee calculated?
The calculation of the deadweight fee is based on the cost of vacant space, and the specific calculation formula is: deadweight fee = booking billing cubic x (full container sea freight + full container port charges) / standard cubic number.
Note: Standard cubic meters: 25/20' 50/40' 60/40'HQ
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Common Reasons for Hold Charges and Preventive Measures
(1) The shipper fails to deliver the goods in time for storage or the booking party temporarily cancels the shipment but does not cancel the booking in a timely manner. Prevention: Please have the freight forwarder regularly communicate with the shipper before the cut-off date and provide timely feedback. Additionally, inform the shipper that they are responsible for notifying, otherwise, it will incur a dead freight charge.
(2) A larger proportion of oversized/undersized/overweight. Prevention: Please ask the freight forwarder to ensure that the booking order is as consistent as possible with the actual goods, and to notify promptly of any changes.
(3) After the goods are stored in the warehouse, if it is found that the characteristics or specifications of the goods themselves prevent transportation, such as "liquids/hazardous materials/oversized and overweight items." Prevention: Please inform the shipper that the freight forwarder does not accept liquids/hazardous materials/semi-hazardous materials, and oversized and overweight items must be confirmed in advance.
(4) Customs inspection leads to delays in shipment. Prevention: Please ask the freight forwarder to ensure that the shipper's declaration is consistent with the bill of lading, documents, and cargo. If customs has any questions, please cooperate with the freight forwarder's customs declaration staff to respond clearly and promptly to customs. Please cooperate as much as possible with any requirements from customs to ensure timely shipment of goods.
In summary, the most important prevention of LCL (Less than Container Load) loss and cost is for the shipper and freight forwarder to maintain close and good communication. At the same time, the freight forwarder should diligently and responsibly solve problems for the shipper in a timely manner, and the shipper should also trust the freight forwarder and be open and honest.
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