How To Avoid LCL Shipment Traps When Importing from China

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#lessthancontainerload #lcl #importingmistakes
If you’re new to shipping, or even a seasoned importer that is new to LCL mode and don’t want to get trapped with high Destination Service Charges and costs, you’re going to want to watch this video! Get a quote: www.tgl.co/request-quote/
What is LCL? It stands for Less than Container Load. It basically means, when you don’t have enough cargo to fill a full shipping container, you purchase a space, sharing a full container with other importers in a similar situation. Think of it as ride sharing but for sea freight shipments.
A common mistake made by new importers or those new to LCL shipping is falling for attractively cheap freight quotes direct from suppliers - this is where the trap is set! More often than not, the dirt-cheap freight charges are too good to be true and do not cover shipment to the new buyer’s door, only the nearest destination port. This leaves the new buyer open to a lot of unexpected fees and charges, like customs clearance, de-consolidation fees and final delivery fee to your door and all at the mercy of their supplier’s Freight Forwarder!
There are a few ways to avoid being hit with unaccounted for fees:
First and foremost: understand your Incoterms and if you don’t, ask your Freight Forwarder
Don’t negotiate CIF terms with your supplier. Use EXW or FOB
Seek out a reliable Freight Forwarder BEFORE engaging in negotiations and make sure you understand your shipping costs
As an experienced Freight Forwarder, we here at TGL see many new and up-and-coming importers that have big ideas, sourced a supplier, and negotiated their rates before consulting a Freight Forwarder, only to succumb to many of the pitfalls that plague the industry. Don’t let that be you! Avoid these traps by watching our video.
TIMESTAMPS
0:00-00:15 INTRO
00:16-00:40 THE PROBLEM
00:41-00:59 WHAT IS LCL?
1:00-2:32 THE TRAP
2:33-3:13 WHAT CAN THIS MEAN FOR THE BUYER?
3:14-4:27 WHAT CAN BE DONE TO AVOID THIS?
4:29-5:24 FINAL PIECE OF ADVICE
Download a copy of our Incoterms Chart here: www.tgl.co/resources/
For more information visit our website: www.tgl.co/
About TGL:
Think Global Logistics is an owned and operated freight forwarder in Australia. Providing end to end solutions to businesses in all industries. Whilst we have offices globally, we still call Australia home.
We are a forward-thinking freight forwarder, with a sharp focus on our people and technology. Through our intelligent practices and thought leadership, we drive the industry to be serve our customers.
Our People, Your Advantage.
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Visit our official website: www.tgl.co/
Get a quote: www.tgl.co/request-quote/
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Опубликовано:

28 июл 2024

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Комментарии : 20

@bernadettehabkouk9817 Год назад

Fantastic video, we need more videos like this to educate importers. Excellent work La Chang! 👏🏻👏🏻

@leafrobinson5735 2 года назад

Hola La, Gracias for your vids... For someone starting from Book 1, Chapter 1, Page 1, your vids very much help to part the clouds to shed some light into the logistics processes. Simply from your advice to negotiate FOB as opposed to CIF may have already saved us from some significant losses.

@lachangaustralia 2 года назад

Super excited that you find value in our content. It makes the process worthwhile!

@ThinkGlobalLogistics 2 года назад

We are glad this video helped you out! If there are any questions you have for us regarding logistics let us know and we can make a video about it.

@josedelucia9904 2 года назад

Good pieces of advice! thank you

@ThinkGlobalLogistics 2 года назад

Glad you found it helpful José!

@shauna9437 2 года назад

Awesome video mate

@ThinkGlobalLogistics 2 года назад

Thanks for the kind words, Shaun!

@nicoleburke2426 Год назад

Thank you so much for this video very informative

@ThinkGlobalLogistics Год назад

Glad it was helpful!

@ChimsOjc-jj1hd Год назад

Instructive

@lRAQl Год назад

Hi, Some say that some countries, will deal with LCL containers as a single shipment, so that certificate of origin, and all other documents that are needed by the importer, will be taken care of by the shipping company. That's because some logistics companies will ship multiple small importers' shipments inside one container (LCL) and it wouldn't make sense to have each and every box inside that container with documents. Is this true?

@lachangaustralia Год назад

No! separate shipments belong to a different importer will need to have its own documents for import customer purposes. The only time that this may be exempt is what was called the "remail" program where a bulk shipment contains hundred or thousands of small parcels that are pre-labelled with local post office postage and addressed directly to a final consumer this is for and intended for things such as subscriptions like physical magazines. However not 100% if this program still exists in Australia as I do believe this program was cancelled. Not sure about other countries. However going to my first point for any commercial shipment B2B all cargo must have it own paperwork belonging to each and every unique entity.

@KBS_ar 2 года назад

What is the correct process to safely and cheaply buy home finishing products from China? (Sanitary wares, electrical fixtures, wall panels and floor panels) 4 hunging toilets 4 hunging basins 4 basin mixers 4 shower mixers 75 COB lights 300m2 wall panels 200m2 floor panels/parque LCL 16cbm/ half 20ft container 300kg Alibaba Shenzhen seaport Jeddah seaport I can hire a Saudi customs clearance agent I can hire a person to transport the products from Jeddah seaport to my home I want a company that collects my products from many Alibaba suppliers to a warehouse in China then ship all of my products to my seaport. (This is my problem, what’s the correct, safe and cheap solution?)

@ThinkGlobalLogistics 2 года назад

Hi Patience, This question requires a detailed answer. If you head to our website www.tgl.co you can book an obligation free consultation with one of our staff. They will be able to help provide you with information on the best course of action. Thanks!

@lachangaustralia 2 года назад

Hey Patience here are my words of advice for you, not all ALIBABA suppliers has the right to export which means you will need to find a trading company to act as an intermediary and have all the suppliers fall under that entity. Secondly the costs of collecting, consolidating and then move it in a container can costs hundreds if not thousands of dollars. Have you done a cost comparison analysis with local suppliers? Thirdly, after you have done all the above checking and still think it is worth going forward then you should start by finding a LOCAL freight forwarder at your end to help you from start to finish! This will be the only way you can get a true picture of all the COSTs upfront and accurately. Do not think by you doing some leg work and breaking the process up that you will save money this is never the reality in this situation and you end up losing control of the process, waste time doing things that isnt going to give you the saving you think will acheive. And finally right now given the state of shipping crisis around the world, nothing is cheap and especially when you have multiple suppliers and wanting it all to be managed smoothly and arriving safely you should not be seeking CHEAP as a criterior. No one is going to handle this one off shipment cheapily if they want to handle it at all. I hope the above doesnt scare you off but please understand these are realities which you will need to face. Cheers

@KBS_ar 2 года назад

@@ThinkGlobalLogistics Thanks