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How to Handle Bulk Cargo

ABigBizApr14, 2020Trade Study Leave a Reply

What are the skills of delivering and handling bulk cargo? With the rapid development of international trade and the diversification of transport service, the LCL transport is accepted more widely. But LCL transport is different from the FCL Transport. It has its own transportation requirements, which are specific and independent. Today I am going to discuss some problems that often occur in actual operation with you.
1.the charges for LCL transport.
"LCL", short for "less than container load", is in contrast to FCL, full container load. LCL is charged by weight so they need to be weighed accurately. Before delivery the factory should measure the weight and size of the cargo as exactly as possible. And when the cargo is sent to the warehouse named by the forwarder they will be measured again and charges the seller according to the new data.
2.Choose a shipping company for LCL.
Normally LCL cannot be assigned to a certain shipping company because shipping companies only accept the delivery order of FCL and they won't directly accept that of LCL unless a freight forwarder consolidate the cargo (except for some strong shipping companies whose logistics companies can do the job). Almost all the LCL cargo is handled by forwarders before delivered. Generally the feeder port of Eastern China is the port of Shanghai. General forwarders can only book cargo space in few shipping companies due to the limit of the supply of the cargo, which causes their failure to meet the requirements of some shipping companies. So if you are making a deal of LCL you had better not assign a particular shipping company in case you cannot meet its requirements when consigning the cargo. 
3.Transit clauses.
When the deal of foreign trade is made you should pay particular attention to the relevant transit clauses, in case you fail to meet the requirements of the clauses when consigning the cargo after the buyer opens the L/C. In daily operations it is common that if the L/C stipulates that the bill of lading of the forwarder is unacceptable in the delivery of LCL. As  the shipping company will not directly accept the cargo space booking of LCL, the shipping company will forward the ocean bill of lading to the forwarder so that the forwarder can sign and forward HOUSEB/L to the consignor. If the L/C stipulates that B/L of the forwarder is unacceptable, it actually leaves you no choice and causes discrepancy of the L/C. You can see from the stipulation in the L/C that the consignee shifts the charges that he is supposed to pay for to the consignor, which is a result of the lack of careful negotiation of transit clauses by the consignor and his customer when making the deal.
4.Weigh the LCL cargo as exactly as possible.
Before delivery you should ask the factory to measure the weight and size if the cargo as exactly as possible. And when the cargo is sent to the warehouse named by the forwarder they will be measured again and charges the seller according to the new data. You should ask the factory to inform you at once if it decides to change to package, or it will be late if you learn it from the forwarder after the cargo is sent. Then the clearance of the cargo may be delayed or you may need to pay for the declaration surcharge or special wharf charge, since you need time to change the documents for declaration.
5.Other matters that need attention.
Some ship routes or ports can be very remote and the customer may require that the LCL cargo be delivered to the inland. In this case, before the deal is made you should consult the shipping company and the forwarder if they can undertake the delivery and make clear the charges concerned.

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