Hello :) This is Shipda (SHPDA) - Digital Import Logistics Forwarding Service.

Today, let's learn about the 'transportation process' when importing small shipments, not container units, by sea. Knowing the process and proceeding with import trade makes a big difference, so we hope our customers using Shipda will thoroughly understand the content to help establish their transportation strategy :)

First, let's learn about the terminology. LCL is an abbreviation for Less than Container Loaded, meaning 'when the loaded cargo does not amount to the quantity of one container'. Logistics emphasizes efficiency, so small shipments are grouped together to create one full container for transportation. Let's see what kind of process my cargo goes through to be imported in such cases.

Before proceeding with the transport, the importer must check the cost through a forwarding company like 'Shipda'. Let's briefly compare Shipda with a general forwarder.

[#1] Convenience of Work

General Forwarder: Responds to work and checks estimates via email/phone

Shipda: Work and estimate checks are possible via the web

[#2] Fixed Price Indication

General Forwarder: Additional cost items (like storage fees) exist when importing small shipments

Shipda: Provides a definite estimate without hidden costs

[#3] Progress at up to 1/2 price

General Forwarder: Re-requests to a company called a consol

Shipda: Removes intermediate distribution through in-house console processing

These three differences exist.

When the importer places an order with Shipda, Shipda contacts the exporter to proceed with cargo transportation. In the case of small shipments, the cargo is brought into a specific place without the need to load it into a container at the exporter's factory. We call this place CFS, where many small shipment consignments are loaded into one container.

• CFS(Container Freight Station): A place where numerous small shipments are mixed into a single container.

The process of loading small shipments into one container at this place is called 'consol', and the logistics company that performs this is called a 'consol company'. In other words, while import businesses request work from forwarders, it is actually the consol company that handles small shipments, and the forwarder becomes an element that occupies intermediate distribution in the small shipment transport process.

Shipda has integrated forwarding and console to eliminate such elements that occupy intermediate distribution, offering cost efficiency to import businesses. Below is information about specialized services for small shipments (Sea LCL), please refer :)

• Ocean Ticket (Global Service): www.ship-da.com/oceanticket
• Warehouse Entry and Import Transportation (China Specialized Service): https://www.ship-da.com/consolidation

When the consol company receives small shipments from the exporter, it proceeds with container loading and informs the forwarder of the estimated shipping schedule. The forwarder then notifies the importer of 1) the loading schedule and 2) the shipping schedule, and if there are no disagreements, transportation from overseas to Korea proceeds.

When a container filled with small shipments arrives in Korea, the cargo of each importer must be distributed and transported, right? Therefore, the container is moved once again to the domestic CFS. The cargo moved to the CFS follows the instructions of the consol company, retrieving all small shipments from the container. Subsequently, each shipment is cleared through customs, and if there are no issues, they are finally shipped to each import company.

In summary, compared to FCL, the following process is added:

(1) Export Area: Small shipments are collected and moved to a specific place (CFS) for container loading. Once loading is complete at the CFS, the container is moved to the export port.

(2) Import Area: When a container containing small shipments arrives domestically, it is moved to a specific place (CFS) for container unloading. Once the unloading at the CFS is complete, each small shipment is transported to their respective importer.

Next, we will learn about the differences in estimation items between FCL and LCL. Thank you.