News -

Why LCL shipments are a much more sustainable and economical option for you

Sharing is becoming more and more common. It is better for the environment and better for the economy. Which is exactly why Less than Container Load (LCL) shipments are starting to make sense for a lot of companies right now. Historically, we have always been taught that mass production and bulk trade is more economical. But times are changing.

Mass production is both unnecessary and extremely unpopular in today’s ultra sustainable society

The benefits of mass production no longer outweigh the costs: financial or environmental. Resources, and storage spaces, are less readily available than they once were. Not only that, but a lot of businesses are also shortening their product lifecycles and keeping their stock levels to a minimum in response to rapidly changing customer demands.

Production lines these days are leaning heavily towards a more ‘on demand’ approach. Whereas the age-old attitude of hoping to sell everything that’s already been produced is fast declining in today’s ultra sustainable climate.

Speedier turnover of inventory, less risk and lower storage costs with LCL shipments

I sometimes hear people refer to LCL shipments as a stopgap solution. But LCL is actually a more sustainable and economical option a lot of the time. Imagine if you were to buy a slightly smaller quantity, require slightly less storage space, lower your risks slightly and enjoy a speedier turnover of inventory. How would that affect your financial results compared to bulk purchasing, management of a larger inventory, weightier storage costs, higher risks and a slower turnover?

This dilemma reminds me of the choice I often face when I go shopping. For example, when I go to pick up a bar of chocolate and see a 2 for 1 special offer. It seems like a great deal at the time, but instead I just end up putting on weight because of something I neither wanted nor needed.

The flexibility of LCL shipments can be a much better option

It's exactly the same with stockpiling goods. As a purchaser, you’re tempted to buy more than you actually need or can in fact sell. Often due to special deals and bulk prices. And it’s the same with shipping, you’re tempted to fill a container in order to reduce your freight costs. But in reality, those goods can end up costing more money in the long term; in the form of unnecessarily high storage costs and an incapacity to sell the stock within an acceptable period of time.

This type of scenario is neither good for your bottom line nor is it good for the environment. Excess stock can lead to goods being sold at a reduced price. Or, worse still, it can result in companies actually having to destroy goods to maintain their brand image and pricing structures. Imagine what that means in an industry like the textile industry, where production itself represents approximately 90% of all emissions and transportation represents only 10%. It is an unnecessary and perfectly avoidable waste of resources. In situations like this, the flexibility of Less than Load Container (LCL) shipping suddenly seems like a much better option all round.

So, what are Less than Container Load (LCL) shipments exactly?

Less than container load (LCL) is nothing more than simple container-sharing. It is a hugely convenient solution made possible by freight forwarders, who have constant access to thousands of part-containers travelling the world. Thanks to the regular departure schedules, LCL shipments rarely have to wait to be shipped. Allowing smaller shipments to hitch a ride on these partially filled containers makes excellent sense, both financial and environmental.

The freight forwarder simply combines any consignments from a specific departure point that don’t quite make up a full container load (FCL). These part-container consignments are consolidated and the container is then shipped to its destination port. On arrival, the shipment is split back into its original consignments for onward delivery to each respective destination.

Significant financial and environmental savings by examining purchasing patterns

I truly believe that a lot of companies could make significant financial and environmental savings through shipping smaller volumes by LCL. For themselves and for their customers. All they need to do is take a closer look at their purchasing patterns. In fact, it’s something I have personally helped a number of customers with. Simply analysing their volumes from a broader perspective has enabled them to reduce their overhead costs and carbon footprint.

From single LCL shipments to complex, multi-stop consolidations, we’ve been developing and fine-tuning our LCL services here at Greencarrier Freight Services for the past two decades. I would love to help you review your purchasing patterns and shipment plans, and hopefully I can help you reduce your costs and emissions too. Give me a call or drop me an email and tell me all about your shipment plans!

I hope you found this article helpful and if you’d like to read more about Less than Container Load shipments, then I warmly recommend these other articles on the Greencarrier blog: Sustainable short sea shipping solution with FCL or LCL service, Less than Container Load service by sea from Asia to Europe and Improving our LCL service – and why it’s a good option.

If you like the content and would like to publish it, please use blog.greencarrier.com as the source.

Related links

Topics

  • Air service

Categories

  • sustainability
  • transport solutions
  • logistics
  • shipping
  • less than container load
  • lcl
  • freight

Contacts

Related content

  • Digitalisation and IT in the logistics industry

    Driven by a growing need for greater efficiency and increasing concerns about the environment, new technology is rapidly changing the logistics landscape. Customers are now placing much higher demands on their partners as a result of digitalisation and IT developments in the logistics industry. And if you want to stay relevant in this highly competitive market, you need to adapt quickly.
    Overc

  • 3 simple steps for avoiding unnecessary costs and delays in your logistics supply chain

    As head of air freight for Greencarrier International, I am often asked about the best way to prepare for air freight deliveries so as to avoid unnecessary costs and delays. The advice I usually give is: do your research, plan well in advance and maintain a regular dialogue between all relevant parties. In this article I will address these three simple steps and give you a few tips to help you fol

  • Sustainable short sea shipping solution with FCL or LCL service

    There is an increasing need for innovative and sustainable transport alternatives when transporting goods across Europe. Greencarrier Freight Services can now offer customers a short sea shipping solution with LCL service from Poland to Sweden. We are complementing our already established solution with FCL service on the same route and contributing to reduced CO2 emissions at the same time.

  • Less than Container Load service by sea from Asia to Europe

    They say “sharing is caring”. This is most certainly true, not least when it comes to moving goods. Shipping empty containers is hugely wasteful. Sharing space, on the other hand, contributes to a more sustainable environment – and also provides one or two advantages for shippers. At Greencarrier Freight Services, we recently improved our LCL service by sea between China and Europe.

  • What is good logistics and how can I improve my supply chain?

    Have you ever wondered why you’re struggling to improve your supply chain? In our latest article on the Greencarrier blog, supply chain specialist Erik Sjöström shares his wisdoms from more than 15 years in the logistics industry. Don’t miss these insightful tips and advice on how to streamline and improve your logistics supply chain.

  • Supply chain sustainability made easy with Green Solutions

    Want to make your entire supply chain more sustainable? Understanding the environmental impact of every decision throughout your entire supply chain can be a real challenge. But it doesn’t always have to be. Our quality and environment coordinator Helene Lundström explains it all in our latest article on the Greencarrier Blog.

  • All you need to know about export licences in China

    Export licence. It doesn’t sound all that complicated, right? However, if you are looking to export from China or are an overseas buyer, you know it can be a real pain in the neck. Especially when it comes to figuring out who is responsible for what. Well, look no further. In this post, I will ease your pain and sort it out for you.