Consolidation allows for cost optimization in international transport, a very advantageous solution for small importers whose shipments do not have enough volume to fill a container.
This system is increasingly used to import goods from China, as it helps to flexibilize the logistics of SMEs and small distributors. With consolidation, these types of companies can benefit from low-cost manufacturing in Asia without incurring transportation costs that can sometimes drastically reduce their profit margins.
Consolidation or LCL shipment is the best option for saving transportation costs when the volume of imported goods does not fill a container. The key to success in this type of shipment lies in perfect logistical management of the process. Bull Importer’s specific software offers security, confidentiality, and transparency
In international maritime freight transport, importers can use two modes: FCL (Full Container Load), which refers to a full container load for a single buyer, or LCL (Less Than Container Load), when products from different suppliers are grouped in one container. This method, commonly known as consolidation, can be used when the port of origin and destination is the same.
Importers who place orders that, by quantity or volume, do not fill a container save a considerable amount in transportation and management costs by making joint shipments. Many Bull Importer clients use this mode as our computerized consolidation system allows operations to be carried out with total confidentiality and transparency.
Advantages of Consolidation for Small Importers
Consolidation is usually the most advantageous option when the goods occupy less than half a container. Generally, this system is used by small distributors and by those importing lightweight and small-sized products, as the transportation price is calculated based on their weight and volume in cubic meters.
Its main advantages are:
- Cost savings. The cost of transporting the container is proportionally shared among all parties involved.
- Greater flexibility. When starting an import business, it is possible to place smaller orders without taking too much risk.
- Tracking and speed. When the product is to be distributed to multiple locations within the country, it is possible to supply without extra costs, more quickly and easily.
The goods that can be consolidated are very varied, although there are certain limitations that should be known. For example, goods considered dangerous cannot be transported together with other types of products. Improper consolidation could cause part of the shipment to become contaminated or deteriorated, posing health risks.
Another key aspect of LCL transportation is customs clearance. The documentation of those sharing the container must be complete and well-coordinated to avoid delays that would affect the entire group of importers.
It is important that the management company can guarantee that all clients participating in the joint shipment are legal and reliable. In this regard, it is advisable to always work with an operator certified as a AEO (Authorized Economic Operator) to ensure the efficiency and transparency of the process.
At Bull Importer, we regularly manage LCL shipments for our clients, helping them optimize costs and be more competitive. Our advice for maximizing small and medium imports is to always delegate to a specialized management company. Due to its complexity, privately organizing negotiations for consolidation with other importers, different suppliers, and the transport company can cause the operation to fail.
LCL Transport with Bull Importer
Our company handles all the arrangements for group purchases, preventing problems, delays, and unforeseen issues of all kinds.
Bull Importer has a management protocol and specific software for consolidation operations, allowing us to streamline procedures, reduce costs, and obtain the best transportation agreements.
If you are interested in importing through consolidation, contact us. We will explain all the details of the operation and find the best solution for your imports from China.
