Shipping LCL: Avoiding losses, damages and delays

By Rohan Masakorala

In the business of container shipping, the Less than Container Load (LCL) shipments consist of a considerable percentage of global trade volumes vs. Full Container Loads by direct shippers (FCL). LCL business consists of very large number of SME businesses around the world using containers as the mode of transport and even large buyers use LCL when sourcing the products from multiple destinations using consolidators

The evolution of container business in to value added services such as LCL has helped shippers to be competitive through economies of scale and the ability to supply goods to the market  speedily even if they do not have orders to fill a full box.

However one of the major problems of LCL shipping if not properly handled and packed, could be losses, damages and delays. In most cases the responsibility for this will be the shippers themselves or the third party logistics providers who handle goods on behalf of the shippers.

The shippers must realise that LCL cargo generally shipped on cubic capacity (CBM) can be lost or damaged due to various reasons in transit. Therefore the operational and documentation personnel should ensure that certain standards are maintained when handling LCL cargo as an export or import.

Packing, marking and information – it’s very important Packing

All LCL cargo needs to be properly packed and secured before loading in to containers. During transport, particularly the maritime mode can cause individual packages and outer packaging to deteriorate. This deterioration could allow them to move & break the contents. Packages and outer packaging must be blocked and braced to prevent the lateral and / or longitudinal movement that can cause such failure. Packages prepared for road or rail may require additional bracing for the maritime leg of the journey if multimodal transport is used. It is always advisable where ever possible to palletize the cargo for easy handling and identification

Marks and Numbers

Shippers and consolidators should be aware that complete and accurate details about the consignment    should be immediately available at all times for the use of authorities when goods are being transported.

One of the most important packing requirements to avoid loss of LCL cargo or accidental change of destination at transshipment points or warehouses is for the shippers to have marks and numbers very clearly displayed on all four corners and top of a  of a pallet/package. Large and clear lettering and if needed with bar-coding for fast clearance should be added. Another important mark would be to show the top side of the package with arrows so that handlers will identify the cargo direction and use equipment accordingly. It would be also helpful to handlers to have the weight and measurements properly marked on the cargo so that better handling will be ensured.

Other information

Include the name of final destination and contact address and telephone number of the clearing agent. If dangerous goods are transported documentation should include information about the dangerous goods and the effects of inhaling, swallowing or skin contact. Mark fragile if goods are breakable and use internationally recommended labeling, colours and symbols where appropriate  

The LCL shipments are more vulnerable for damage and loss and misplacement in Asia more than any other continent as shippers and consolidators often ignore what has been highlighted above. The shippers must also make sure that all information related to the consignment should be properly indicated in all shipping documents, including BL/Packing list. Finally it is advisable to take photographs of LCL consignments once packed on to a container. This to ensure in the event of loss or damage the insurer will be happy that proper measures have been taken in the part of the shipper and therefore damages could be claimed with less hassle or consignments could be traced much faster at warehouses.

The writer is the CEO Shippers’ Academy Colombo.