During the business, you may have heard of this term ”Box“.. in this essay explained, we see what a console box is, how it works and The positive and negative aspects of a console box.. ..
The innovative idea of the container made by Malcom Mclean 69 years ago made it possible for globalization and put it on a firm path and transported its goods around the world quickly, easily and safely.
Background
This also happened with the evolution of containers, sizes and different types of containers as well as a variety of container services.
One of these types of container services C.Loudly JeffThe agent HappinessOAD (FCL) .. ..
- In the type of FCL container service, the full container is used exclusively by a single customer for their cargo.
- In the FCL, the customer is responsible for the packaging and the status of the packaged cargo in the container.
FCL is the most common type of container service, but what happens to customers who do not have enough cargo to fill a container alone?
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There are options for such customers who can be shipped in smaller amounts and this is called Lcl Shipment ..
LCL is an abbreviation HappinessArticle From JeffThe agent HappinessOAD, which is used when the same container is used for shipments belonging to several freight times.
Integration, That refers to the action of “integration” (or grouping as known in specific circles). Stabilizer (Or Groupage operator) ..
Customers delivered their cargo to the packaging station (previously read CFS – Container Transportation Station), where the cargo is packaged in the container.
Consolidation
Although the concept of collecting multiple shipments and packaging them in a single container may be the same, there is a difference between LCL and integration or grouping.
While on the export side of the origin, it is called “consolidation” or “console”, on the other side of the destination, it is called “repeller” or “deconsol”.
When this integration/reclaim is done by the shipping line in your warehouse, this container is called a LCL container, And if this integration/re -excretion is done by a fusion then the container is called Box.. ..
LCL’s services have been popular in the past. Over time, fewer carriers run LCL services, and I am not sure that these days they really provide this service.
So how does the console box work.
Well, actually very simple
- Different shipments deliver LCL shipments that are delivered to different destinations to the packaging warehouse introduced by the Consolidator
- Say the port of Durban is
- Stabilizers usually have a few points of integration or re -excretion around the world – such as Dubai for Middle East countries, Singapore for the East/Southeast Asian countries, New York for the US, Hamburg for the European Union, etc.
- Integrates the cargo on the basis of its final destination and arranges the packaging accordingly
For example, far -east, Southeast Asian and Australia ports such as Keelung, Penang, Sydney, Adelaide and Honiara may be reserved via Singapore, which can be a combined polar port for these areas- So the consolidator reserves a container of 20 ′ or 40 to to Singapore as a FCL box in FCL/FCL conditions with a shipping line
- As far as the integrator relates, they received various LCCl shipments from shipping, and so, their shipping conditions to their customer could be LCCL/LCCL
- Any carrier who has carried to the cargo will receive a house bill for your cargo after paying all shipping and any other fee
- The dish is loaded, and the ship becomes the sail
- The container is discharged in Singapore
- The integrated office or their representative in Singapore will be delivered from the shipping line from the transport line and transfers the full container to your warehouse
- This cargo has not opened from the container according to the final destination of cargo such as Keelung, Penang, Sydney, Adelaide and Honiara.
- Similar to these cargoes from Durban, a combination of this destination arrives from other places such as New York, Mumbai, etc.
- The integration then loads all cargo limited to Keelung in one container, cargo limited to Sydney into another, and so far as all the cargo received from Durban, New York, Mumbai has been reused in the suitable containers for these purposes.
- These containers then boat to the relevant destination
- As soon as you enter Keelung or Sydney, the integrated office or their representative will release the complete container from the shipping line and open the container in its warehouse
- The transportation of these cargoes approach the office or agent for freedom, and after submitting the home bills, they release their cargo after paying any destination fee.
A console box is considered by many as a simple way to carry cargo to your destination cheap and efficient.
As a customer, you need to understand how to integrate and the options available for proper planning, executing and delivering the goods to the destination.
What are the positive and negative aspects of the console box?
Like any activity, there The positive and negative aspects of using console box, Which is discussed below ..
Aspects
1 If you are using a console service, you do not need to do specific activities or tolerate FCL shipping costs.
- Removing an empty container from the line warehouse
- Ensure a clean and audio condition container
- Container packing in warehouse or third party
- Set the job for packaging
- Complete return to the port
2 When using the console box, you only pay the space you use. Consolidator calculates the space or weight (tone of transportation) and your cargo uses it in the container and charges you.
3 If you want to avoid the large inventory storage, using a console box may be useful. If you are properly scheduled, you can get the right amount of stock if needed .. This will also help you manage and budget your cash flow.
4 Consolidator advises you to open specific packaging dates for specific destinations, allowing you to plan your shipments.
5 You can also use the console service to test the reliability of a new supplier or to test the new products you may buy. Provides less flexibility for the carrier and receiver.
6 You may provide a bill as soon as the cargo is delivered to the shipping line (Master of the LCL) or Consolidator (Home Bills In case of Mergers).
Negative
But, like any business/service, there are some negatives with the console box.
1 Finding a reliable industry -based combination is one of the main challenges when carrying loads in a console box.
2 Consolers need more planning and organizing, and the carrier must be aware of the cost, pricing, frequency of cargo, transit time and load dimensions to ensure effective planning.
3 A console box may be prone to delay in CFS origin, waiting for other shipments to be integrated.
4 Due to multiple control, compared to the FCL there is a possibility of cargo damage because the cargo may be managed by several different mergers. There may be a destination that requires cargo or twice.
5 It is possible that the entire container may be arrested for customs testing or investigations, even if only one of the shipments in the container is suspicious.
6 There may be a difference in transit between LCL and FCL to the same port, and the carrier and sender must be aware of this and make their cargoes according to this.
7 With a console box, you will receive a home bill from the operator, but you may still wait until your cargo is released.
Integration may not be for you.
In transportation, there is no solution “one size to all”, so remember, a console box may not be suitable for everyone, even if they carry less than the full capacity of the container.
For example, if your cargo is more than 12-14 CBM or heavy cargo such as tiles, etc., FCCL may usually be cheaper as the cost of each ton when using the console box.
This calculation is based on scale economics ..
When we talk about scale economics, it is important to remember that LCL cargoes are based on “tone of income” or “tone of transportation” or are usually known as W/M.
W/M refers to weight or measurement, each one be higher ..
For example, $ 20 per weight to Singapore, which means that if your cargo weighs 2 tons but has 12 cb volume (think of cargo such as baby seats), the rate will be $ 12 x $ 240 because it is more than $ 20 x 20 = $ 20.
For example, if your load weighs 5 tons but 3 CBM in volume (think about cargo such as dumbbells)), its rate will be 5 x $ 20 = $ 100 because it is more than 20 x $ 20 = $ 60.
For these reasons, the scale economy uses a compound of 40 ′ as much as possible to integrate.
In terms of weight, a container of 40 ′ can have a low weight and more than a container of 20 ′ about 26 tons.
A 40 ′ HQ can carry about 73 CBM cargo and therefore, a 40 ′ HQ is the highest size/type of containers for a combination. This depends on the availability of the load.
Since there will be different types of cargoes in different forms (boxes, drums, cartons, pulleys, palettes, uneven shapes), there will always be a wasted space in a container.
Therefore, the maximum optimized and tested to achieve the economic scale in the LCL is between 14-14 CBM, then the LCL transportation may not be affordable and the FCL may start to sound better.
Finally
As you can see, there are several benefits and benefits of using a console box.
Remember, in this logistics business, you must pay attention to the costs, requirements, the nature of business and the deadline .. Good luck ..
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