Guidelines for Sea Freight LCL Documentation and Transportation Operations

With the rapid development of international trade and the continuous expansion of transportation services, the operation knowledge of sea cargo documentation and the containerized consolidation shipping are widely adopted. However, containerized consolidation is different from full-container shipping, and its transportation requirements have their unique characteristics and independence. Here, we present some issues encountered in actual operations for discussion with all.

1. "Consolidate" is the English term for a container load, commonly abbreviated as "consol" in international trade and transportation.

2. Consolidated shipments generally cannot be booked with a specific shipping line. Shipping companies only accept bookings for full container loads and do not directly accept consolidations. Bookings for consolidations can only be made through freight forwarders (or, in some cases, through the logistics companies of certain robust shipping lines). Almost all consolidations are handled by freight forwarders, who consolidate the goods and then book the space with shipping companies. In the East China region, the main consolidation hubs are primarily Shanghai Port. Due to the limited source of goods, most freight forwarders can only book space with a few shipping lines, rarely meeting the demand for a specific shipping company. Therefore, when transacting consolidations, it is advisable to avoid specifying a shipping line to prevent any issues with meeting shipping requirements during the booking process.

3. When negotiating deals with clients, pay special attention to the relevant transportation clauses to avoid discovering that the shipping terms cannot be met after the buyer's letter of credit has been issued and during the shipment process. In our daily operations, we often encounter situations where the Letter of Credit (L/C) stipulates that the transportation of consolidated cargo is not acceptable with the forwarder's bill of lading, as shipping companies do not directly accept bookings for consolidated cargo. The shipping company's marine bill of lading is issued to the freight forwarder, who then issues the HOUSE B/L to the shipper. If the L/C specifies that the forwarder's B/L is not acceptable, there is no room for choice during the actual transportation process, which could lead to a discrepancy with the L/C. For instance, when handling transportation, we found a shipping order noting: "Goods must be shipped in containers on LCL basis and a Bill of Lading must be provided as evidence hereof."

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The THD ports of discharge are prepaid. As indicated by the original text of the above L/C, the consignee has transferred all costs that were originally theirs to the shipper. This is due to the lack of detailed negotiation on transportation terms between the shipper and the client during the trade discussions.

4. We strive for accuracy in the calculation of consolidated cargo's measurement tonnage. Before delivery of consolidated cargo, it is essential to require the factory to measure the weight and dimensions as accurately as possible. Upon delivery to the warehouse designated by the freight forwarder, the warehouse typically re-measures the cargo, and charges will be based on the newly measured dimensions and weight. In the event of changes to the factory's packaging, it is important to request that the factory notify promptly, rather than waiting until the cargo arrives at the freight forwarder's warehouse. Delaying the information feedback through the freight forwarder can lead to time constraints, and it is easy to cause delays in customs clearance or incur urgent customs clearance fees and port surcharges.

5. Due to insufficient container货源 and higher costs, freight forwarders specializing in container shipping apply a minimum charge for smaller shipments, such as a minimum billing of 2 freight tons. This means that any shipment under 2 freight tons is charged as if it were 2. Therefore, when dealing with small-volume, less-accessible port shipments, consider these factors during negotiations to avoid future complications.

6. For shipments to remote routes and ports, and for consolidated cargo that requires delivery to inland points as requested by the customer, it's best to consult first before finalizing the contract. Confirm that there are shipping companies and freight forwarders capable of handling deliveries to these remote ports and inland locations, as well as the associated fees, before signing the agreement.

7. Currently, in preparation for joining the WTO, customs across various regions are focusing on inspections of sensitive and trademark-protected goods. For shipments involving intellectual property rights, it is essential to complete the intellectual property declaration form in advance. Whether the brand is present or not, and whether the trademark is registered by the company, the factory, or the customer, relevant documentation for the registered trademarks or the customer's authorization must be prepared. For shipments with a variety of product types, where a single consignment contains multiple different types of goods, it is crucial to list all product names and numbers in detail during documentation, rather than using a general commodity code. This is to avoid customs inquiries and potential discrepancies upon inspection, which could lead to the shipment being held up due to non-compliance with actual goods, as well as the necessary knowledge for transport operations of consolidated cargo documents.