Understanding the Differences in Quotation Items for Ocean FCL/LCL Import Transport
Hello:) Digital Import Logistics Forwarding Service - Shipda(SHIPDA) here.
In this content, we will explore the differences in quotation items between FCL and LCL when conducting ocean transport.
In the previous content, we talked about the transport process of FCL/LCL. If you're curious about the previous content, you can check it at the address below.
[Go to Ocean FCL Transport Process] / [Go to Ocean LCL Transport Process]
Since both are conducted via ocean transport, there are differences in unit prices according to quotation items. This is understandable as common sense even without further explanation. However, compared to FCL, LCL has two additional items on the 'quotation', and we will explain these in detail. :)
The reason for the difference in quotation items is due to the addition of extra work processes. In the case of LCL, unlike FCL, two additional processes are added at both the export and import locations, as follows.
(1) Export location: Collect small volumes of cargo and move them to a specific location (CFS) for container loading work. Once the loading work is completed at the CFS, move the container to the export location port.
(2) Import location: Once the container with small volume cargo arrives domestically, move it to a specific location (CFS) to conduct container disassembly work. Once the disassembly work is completed at the CFS, transport each small volume cargo to each importer.
Most imports proceed in FOB conditions, taking responsibility for transport from the export port to the final destination, so let's explore the differences in the 'import location' part of the quote in detail. As explained above, once the container arrives at the Korean port, it must be transported to a specific location (CFS) for disassembly.
[Quotation Item Difference 1. SHUTTLE FEE]
At this time, the container is transported without customs clearance, which is called bonded transport, professionally called SHUTTLE transport (also known as DRAYAGE). When proceeding with FCL, transport is directly conducted from the port to the desired final destination of the importer, thus omitting this process. However, in LCL, this quotation item is added as the container must be moved to a specific location for the disassembly of the internal cargo.
[Quotation Item Difference 2. CFS CHARGE]
Additionally, the cost of disassembling the cargo is not 'free', right? The place for disassembling the container is called CFS, and the act of performing this disassembly is called 'CFS CHARGE'. Once this work is completed and customs clearance is finished, the cargo is transported to the importer's final destination. As such, since two additional work processes are added for LCL compared to FCL domestically, these items are identified in the LCL quotation.
For customers who have handled multiple import businesses, such costs are familiar, but for those doing it for the first time, they are very unfamiliar and difficult terms. Here, to simplify quotation items, Shipda has launched an 'Ocean Ticket' service that charges only 'ocean freight' and 'basic fee', providing the service (available at major ports worldwide). You can check the detailed information by accessing the URL below.
This service is a specialized service of Shipda that not only simplifies quotation items but also reduces costs by up to 1/2 by removing intermediate distribution stages, unlike general forwarders. It is a good service to know for import companies conducting small volume cargo import transportation, so please refer to it.
Do you have any further questions? Leave your inquiries via real-time consultation, mail, etc., and we will provide prompt response guidance. Thank you:)
