What is the LCL loss fee?

Hamburg harbour Cargo terminal.

LCL cargo refers to the small-ticket goods that are not filled with a full box. Usually, the bulk cargo consolidation contractor collects the goods separately, and collects them at the container freight station or inland station, and then assembles two or more tickets. Within a container, it is also required to be unpacked at the destination container freight station or inland station for separate delivery.
For this kind of goods, the carrier is responsible for the packing and unpacking operations, and the packing and unpacking fees are charged to the cargo party.
In international trade, companies often fail to ship the goods due to various reasons, so they have to bear the corresponding loss of LCL costs. The most important thing is that many shippers are not very aware of these costs, so they are hard to guard against.

What is the LCL loss fee?

In the process of LCL export by sea, after 11:00 noon on the working day before the cut-off date of the order, the goods could not be shipped in time due to the reasons of the booker, resulting in the vacancy of the LCL company's space, and the LCL company sent the booking company accordingly. The fee charged by the cabin crew to make up for the loss.

How is the loss fee calculated?

Forklift handling container box loading to freight train

(1) Algorithm based on full load (standard cubic number): The calculation of the deficit fee is based on the cost of vacant space.
The specific calculation formula is: difference fee u003d booking billing cubic x (full container freight + full container shipping port cost) / standard cubic number. For example, the FCL is 2000usd (the freight paid by the LCL company to the shipping company), the port miscellaneous fee is 800usd, the container type is 20GP, the number of defective products is 8CBM, and then: (2000+800)/25x8u003d896usd.
(2) When quoting customers, it is charged according to the simple calculation rate: loss fee u003d price per cubic meter x number of invoicers of lost goods.
For example, if you quote 50usd/cbm to the customer and 5cbm to the lost cargo, you will lose the cabin fee u003d50x5u003d250usd
(3) Lost Cabin feeu003d (FCL fee/number of billing parties in the cabinet) x number of billing parties Lost goods
For example: if the cost of the whole box is 2000usd, the chargeable amount of the goods in the container is 20cbm, and the chargeable amount of the out of stock is 8cbm, then: the loss fee u003d 2000/20x8u003d800usd. The calculation results of the above three methods are different. Usually the third method calculates the least freight loss, but few LCL companies will calculate the freight loss according to the first method. Unless it is an important customer with good cooperation, the LCL company may consider the third type, or even a reduction. Lost Cabin Fee

Common reasons and preventive measures

(1) The owner of the cargo is too late to enter the warehouse or the person who temporarily cancels the shipment, but the booking person fails to cancel the booking in time. Precautions: Please keep the freight forwarder regularly in communication with the owner before the customs cut-off date and provide timely feedback. And inform the cargo owner that he has the responsibility to notify, otherwise it will incur loss of shipping charges.
(2) A larger proportion of super square/reduced square/overweight. Precaution: Please ask the freight forwarder to ask the owner of the consignment to be consistent with the actual cargo as much as possible, and notify in time if there is any change .
(3) After the goods have entered the warehouse, it is found that the characteristics or specifications of the goods cannot be carried, such as "liquid/dangerous goods/oversized and overweight items". Precautions: Please inform the freight forwarder not to accept liquid/dangerous goods/semi-dangerous goods, and oversize and overweight items must be confirmed in advance.
(4) The customs inspection resulted in the inability to ship in time. Precautions: Please ask the freight forwarder to require the owner of the declaration to be consistent with the bill, the documents and the goods. If the customs has any questions, please cooperate with the customs broker of the freight forwarding company to reply to the customs in time and clearly. What are the requirements of the customs to cooperate as far as possible to ensure timely shipment of the goods.

Prevention: Please ask the freight forwarder to require the owner to declare the same documents, documents, and goods. If the customs has any questions, please cooperate with the customs declarers of the freight forwarding company to reply to the customs in a timely and clear manner. What are the requirements of the customs to cooperate as much as possible to ensure that the goods are shipped in time.​​

In a nutshell, the most important thing for the prevention of LCL loss is to maintain close and good communication between the cargo owner and the freight forwarder. At the same time, the freight forwarder is dedicated to solving problems for the owner in a timely manner, and the owner should also trust the forwarder and meet each other frankly.