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Guide for Successful Exporting

excelsior on July 15, 2020

 

Exporting or the act of trading goods by sending them over to another country has been an attractive venture for many people for as early as the prehistoric times. From the barter system, up to the modern forms of trade, exported products have become so popular that it is one of the primary reasons for the development of globalization and cross-cultural communication.

In the Philippines, a number of products manufactured locally have a considerable amount of export markets to offer on an international scale. According to the Department of Trade and Industry, one of the top export markets of the country can be found in countries such as Japan, the United States, China, South Korea, and Singapore. Along with the country’s growing economy, the Philippines is now more than capable of mass-producing exportable products like electronic materials, minerals, and fruits.

Selling products abroad can be a lucrative business, especially if you know certain methods and techniques in practicing your trade. In case you’re planning to start an exporting company, there are several benefits that you should anticipate.

Benefits of Exporting

Vast markets – Exporting allows an enterprise to gain access to a great number of potential markets. Doing thorough research can help you identify a list of specific locations where you can sell your products and gain maximum profit.

Increased sales – Exporters can enhance their sales potential since they can reach out to more customers.

Better profit margins – More customers lead to increased demands, which in turn results in fairly profitable business.

Makes budget for research a worthy investment – Conducting market studies can help an exporter improve specific products in order to meet the needs and satisfaction of new markets.

Tips for Successful Importing

Despite having some advantages, exporting products is a challenging task. Such practice requires you to establish healthy connections with foreign consumers, which can be very difficult due to cultural and language barriers. You need to learn how you can promote your products and convince international markets on why they should view your brand as a trusted supplier.

To help you increase your chances of success, here are some of the best tips for exporting your goods:

  1. Prepare a well-detailed research

Research is one of the most crucial steps in starting an exporting business. The data that you will receive from the results can give you a proper understanding regarding the demand for your chosen product. When conducting market research, make sure that you establish achievable goals like identifying the economic rate of a potential market, the demographics, as well as closest competitors.

  1. Plan accordingly

You have to consider the following factors:

Capacity – Determine whether you have the adequate capacity (resources) to meet the changing demands of different markets.

Knowledge – Study your products, mainly the driving reasons that can make it valuable and worthy of people in other parts of the world.

Packaging – The design of your packaging reflects a significant portion of your brand’s identity.

  1. Select a marketing route

In order to reach out to a massive number of customers across borders, you can choose one of the marketing routes below:

  • Using a distributor
  • Creating a joint venture
  • Using a sales agent
  • Be a direct seller

  1. Understand the nuts and bolts of the exporting process

Exporting comes with several procedures that involve varying rules and regulations of bringing exported products from one country to another. Remember to check if the goods you’re trying to export will require some paperwork to be done before they can be cleared by the authorities.

  1. Hire a freight forwarder

Freight forwarders are highly skilled professionals that possess immediate knowledge in logistics and can ensure seamless documentation and customs clearing processes when exporting your products. Consider hiring a freight forwarding agency for your business if you want to avoid any unnecessary delays and other related hassles associated with exporting.

Excelsior Worldwide Freight Logistics conducts free orientation for those who are willing to learn. It is our advocacy to share our knowledge & experience worth more than a decade in the business. Visit our website today at www.excelsior.ph to learn more about our service.

 

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Ways of Preventing Shipment Delays

excelsior on June 15, 2020

Ways of Preventing Shipment Delays

Untimely arrival of shipment is perhaps one of the most common problems of businesses nowadays.  With the world currently facing the COVID-19 outbreak, supplies can deplete faster, and delayed shipments could result in poor customer service and wasted profit opportunities.

On the other hand, those who specialize in manufacturing are more likely to suffer from the effects of delayed shipment. Based on a study, around 62% of respondents believed that they are less likely to negotiate again with a supplier whose products were not delivered to them within the promised dates.

If you’re running an import/export business trying to transport your products with minimal to no delays, then here are some of the ways to do so.

Know the Cause of the Delay

The first step for preventing delayed shipment is through having an understanding of what causes the delay in the first place. This will enable you to prepare solutions the next time around.

Examples of scenario that are usually attributed to the untimely arrival of shipment include:

  • Bad Weather – Typhoons and even other forms of natural calamities are purely unavoidable, which make it the most tolerable cause of shipment delays.
  • Errors in Documentation – Any errors in documentation, such as the misspelling of the address, incorrect order forms, and incomplete information, can also lead to unnecessary late deliveries.
  • Package Redirection – A change in information, especially the address, can usually make a shipment be transferred in a different time of arrival.
  • Customs Delay – Customs authorities typically require a list of requirements before you can clear your shipment. Failure to submit these documents in time will guarantee a late shipment.

Practicing utmost care and planning ahead of time are the best measures that you can do to prevent any of these indicators from happening.

Make your Warehouse More Organized

Keep your warehouse well-organized, especially if you receive tons of orders every day. Arrange your products based on how popular they are, and make sure that the packages that you will transfer are all in a separate place so that they can be easier to find upon dispatching.

Utilize Logistics Software

Automation can be considered as one of the efficient ways of combating delayed shipment. However, you should take note that using software for managing logistics can prompt you to invest more money, as they can be quite expensive. But in case you don’t have enough resources to afford logistics software, you can still go for an alternative way. Formulate a step-by-step checklist that will guide your employees while doing logistics tasks.

Hire a Freight Forwarder or Customs Broker

Partnering with a freight forwarding agency or a customs broker in the Philippines comes with a lot of benefits, which include preventing any delays in your shipment. Since both professions are very knowledgeable in logistics, they can provide you some helpful advice of the best carrier company that will ensure the timely arrival of your goods. And if you have issues with your documents, a customs broker will surely help you clear everything up as they are very familiar with the process involving customs requirements.

If you want to know more about what freight forwarders and customs brokers do, check out the infographic here.

Excelsior Worldwide Freight Logistics conducts free orientation for those who are willing to learn. It is our advocacy to share our knowledge & experience worth more than a decade in the business. Visit our website today at www.excelsior.ph to learn more about our service.

Why Freight Shipping is Important in the Philippine Transportation Industry?

excelsior on May 15, 2020

Why is Freight Shipping Important in the Philippine Transportation Industry?

Freight shipping is the term used to describe the practice of transporting commodities, cargo, and goods via land, air, or sea. Being an archipelagic country, freight shipping plays a major role to the Philippine economy. With thousands of islands trading different products that keep the economy intact, the importance of freight shipping become even stronger especially for the transportation industry.

In this article, we have gathered some information regarding the essence of freight shipping in the context of transportation:

Freight Shipping: One of the Oldest Industries

Freight shipping is known to be one of the oldest industries in the world, entering the Philippines for as early as the pre-colonial period. During this time (around mid-16th century), the islands were already populated with trade routes used by merchants selling products from China, India, and other Southeast Asian countries. As time goes by, with the advancements in the field of technology, freight shipping in the Philippines continued to grow together with the rising demands of products that are only available in certain regions of the country. Thus, with the arrival of the colonizers, Filipinos continued to take advantage of utilizing freight shipping as a primary method of trading from one place to another.

Facts that You Need to Know About the Impact of Freight Shipping

Few people have a grasp of how freight shipping affects the world, let alone the transportation industry in the Philippines. To help you understand the impact of freight shipping, take a look at the following facts that are just outright interesting:

  • The Philippines is slowly establishing a global reputation as one of the leading ship producers. In 2010, the country was hailed as the fourth-largest producer of ships in the world.
  • According to a 2017 review of the local maritime industry, Philippines have a 4.2 market share in container ships, which makes it on par with other world-class ship producers such as China, South Korea, and Japan.
  • Several data suggested that the Philippines is a potential competitor for global container shipping services.
  • The top trading partners of the Philippines are as follows: Australia, India, Vietnam, Taiwan, Malaysia, Singapore, Thailand, and South Korea.
  • In 2016 the nation registered a +4.6 growth rate in the national fleet. Most of it consists of carriers, general cargo, and container ships.

Hurdles that Businesses must Overcome in Freight Shipping

Given the significance of freight shipping in the Philippines, businesses especially those that are still new to the industry must be able to have an in-depth understanding of how specific systems work in order for them to be successful. This involves having knowledge in the overall process of shipping, which can be quite a challenge even for the seasoned ones.

If you own a business that is aiming for reaching greater number of customers across country borders, you will need professional help to guide you all the way through the requirements. In these case, hiring freight forwarders and customs brokers is the most ideal solution.

Excelsior Worldwide Freight Logistics conducts free orientation for those who are willing to learn. It is our advocacy to share our knowledge & experience worth more than a decade in the business. Visit our website today at www.excelsior.ph to learn more about our service.

Sources:

How Customs Brokerage Firms Help the Philippine Economy

excelsior on April 15, 2020

How Customs Brokerage Firms Help the Philippine Economy

There are several factors that affect the economy of a country. From the total population, natural resources, to technological growth, it is highly essential for such a massive social unit to thrive and make efforts to enhance and develop its own economy.

In the Philippines, one particular industry is becoming more renowned as a great contributor to the country’s economic growth. Customs brokerage refers to the profession of rendering services to an organization, usually an exporter or importer, to assist them in clearing customs requirements and processes so that they can transfer their products in different locations without facing any legal issues.

The Bureau of Customs, the Philippine government’s agency that facilitates the nation’s trade through an effective customs system, had been touted local customs brokerage firms to be their partners in maintaining the economy. Why did the government say so?

Customs Brokers Helps the Government to Fight Corruption

Customs brokers, as licensed professionals, spent considerable time studying different customs regulations, as well as the most effective ways of negotiating with the authorities. This means that they are well educated on how the government agency operates. Since customs brokers are always dealing with them, it can be easy to spot and report any irregularities committed by any customs authority.

Customs Brokers Aid in Encouraging Investors in the Country

The Philippine government raises funds from taxes. Greater portions of taxes came from businesses. Customs brokers, in a way, encourage investors to do business in the country hence augmenting the country’s economic growth and providing the government with more funds more developing many projects such as infrastructure, public facilities, and combating poverty.

Customs Brokers Can Help Create More Jobs

This is inlined with the profession’s capability to trigger a chain of events that leads to attracting more people to invest in the Philippines. More businesses result in increased job demands, reducing the unemployment rate. This is perhaps one of the best benefits that are often neglected, as many people thought customs brokers only affects what’s going on within the field of the trade itself.

Customs Brokers as an Integral Profession

The Philippine government is currently in full support of the continuous rise of customs brokerage firms. As it was stated in the Customs Modernization and Tariff Act (CMTA), one of the state’s ruling policies is that a priority and support must be given “to professionalizing the practice of customs brokers profession in the Philippines which will be beneficial to the country in general and to the economy in particular.” This further highlights the integrity of customs brokers as key players in maintaining the stability and growth of the Philippine economy in general.

Excelsior Worldwide Freight Logistics conducts free orientation for those who are willing to learn. It is our advocacy to share our knowledge & experience worth more than a decade in the business. Visit our website today at www.excelsior.ph to learn more about our service.

Why You Need a Licensed Customs Broker in the Philippines

excelsior on March 16, 2020

Why You Need a Licensed Customs Broker in the Philippines

Commercial businesses in the Philippines, especially those that specialize in importing and exporting, are always facing challenges that are often involved with shipping and customs processes. Transporting products in and out of the country requires an enterprise to comply with specific rules and regulations that can be complex and time-consuming. This became the reason why customs brokerage has become an ever-growing business trend as hiring a licensed customs broker can save a business owner from getting worried about preparing the necessary documents.

Are you planning to run an import/export business in the country? Then you better know more about how customs brokers and why you need to hire one:

Reason #1: To Establish Effective Communication with the Government Authorities

Dealing with government authorities to ship your products can be a tedious process that requires technical knowledge in the existing laws and regulations. For your shipment to be released by Philippine Customs and other government bodies, you will have to submit a number of documents and fill-out forms. Failure to effectively communicate while complying with such requirements can result in wrong shipment information and further delay in your supply chain.

Customs brokers can get rid of this problem because they are well-connected with those in authority, speeding up the clearing process and avoid any problems usually associated with customs requirements.

Reason #2: To Help You Focus More on Other Areas of Your Business

With a trusted customs broker taking care of your shipment tasks that you were supposed to do, you will find yourself in a more convenient situation. More time means more opportunity for addressing other important areas of your business, such as managing your employees, daily operations, etc.

Reason #3: To Prevent Unnecessary Expenses

There are some businesses today who gets fallen on the trap of clearing shipments themselves because they thought that it would save them more money. This is a clear misconception because the rules and regulations in cross-border transactions can fluctuate at any given moment, making it easy for know-it-all companies to experience delays, and others unwittingly commit violations that could prompt them to spend more money in the long run.

Reason #4: To Save Time and Effort

Time, as a precious resource for an import/export business. Depending on the nature of your products, ensuring that it will arrive at its destination on time is a must. Customs brokers in the Philippines are trained and skilled enough to work in a way that can optimize the flow of your overall supply chain, especially in the aspect of product shipping.

Reason #5: To Help You Find the Best Option for Shipping

A customs broker can serve as a guide for your shipping options. By considering several factors, customs brokers can recommend the best carrier, be it via air, ocean freight, or truck freight.

 

Excelsior Worldwide Freight Logistics conducts free orientation for those who are willing to learn. It is our advocacy to share our knowledge & experience worth more than a decade in the business. Visit our website today at www.excelsior.ph to learn more about our service.

5 Most Common Shipping Problems

excelsior on February 15, 2020

5 Most Common Shipping Problems

The shipping industry in countries like the Philippines is often involved with a lot of requirements when it comes to transporting goods from one place to another. Due to the complexity of the shipping process, it’s not surprising to know that issues and other problems might arise which could disrupt the supply chain of those businesses who rely on services like freight shipping.

Fortunately, such issues can be apprehended by hiring a trusted freight forwarder and customs broker. But still, it would be an advantage for those who are investing a lot in import and export business to be aware of the most shipping problems.

Problem #1 – Missing Documents

The most important document that must always be present at hand during the shipping process is no other than that original copy of the Bill of Lading (BOL). It might sound like a no-brainer but believe it or not, many shippers tend to misplace them due to certain reasons. If you ended up losing your Bill of Lading, there’s a high chance that you will experience delays with the release of your shipment. Make sure that your Bill of Lading is always secured via a reliable channel.

Problem #2 – Unanticipated Closures and Cancelations

One troublesome shipping problem that frustrates many businesses nowadays is when unexpected events happen, leading to the port getting closed or the freight carrier canceling its trip to the destination. The reasons may include strikes by port workers or truckers, and natural disasters. In cases of natural disasters, it’s always better to face the delays instead of the carrier risking the safety of everyone on board and your shipment.

Problem #3 – Overweight Cargo

Failure to properly check the weight of the cargo often results in several problems throughout the shipping process. First, there’s going to be inaccuracies to the documents as the cargo’s weight is essential information that must be submitted. Second, the shipment might become so heavy that it will require different lifting equipment, wasting you a lot of time and (and most likely, money) in the long run.

Problem #4 – Lost Shipment

In addition to missing documents, every shipper must know that if they’re going to have their goods transported on a massive carrier, chances of it going missing are quite high. Ports are now starting to grow larger, and with a plethora of other shipments, you will have to hire a trusted third-party agent to keep an eye on your products.

Problem #5 – Holidays

National holidays can be a good time for being merry and taking some rest from work, but it could mean delays on your part as the shipper. To prevent such problem, do some research on the upcoming port or terminal closures at both origin and destination. Anticipate the holidays by scheduling your shipment before the specific dates, unless you have to suffer a stressful shipping process filled with tons of other cargoes and port congestion.

Excelsior Worldwide Freight Logistics conducts free orientation for those who are willing to learn. It is our advocacy to share our knowledge & experience worth more than a decade in the business. Visit our website today at www.excelsior.ph to learn more about our service.

5 Questions to Ask When Looking for a New Licensed Customs Broker

excelsior on January 15, 2020

Questions to Ask When Looking for a New Licensed Customs Broker

So you just decided to hire a new licensed customs broker to keep your supply chain from getting disrupted by the complexities of shipping processes. In addition to freight forwarders, having a trusted licensed customs broker can bring ease and save a lot of time in transporting your products especially on an international scale.

However, with the growing emergence of such a profession, finding the appropriate licensed customs broker for your business can become quite challenging as everyone will surely fight their way to have you as a client. Not all licensed customs brokers can provide the same level of service, which means that you must be ready to know more about them before making an agreement.

Here are five questions that you must remember when looking for a new licensed customs broker:

  1. May I see your track record?

Knowing the track record can make you more confident that your new licensed customs broker can handle well all of the customs requirements and other related tasks for your business. This can be done after doing initial research. A licensed customs broker working for a company will most likely possess a good online presence. Try visiting their official website and see if they have other online platforms used for reaching out with potential clients. You might even take a glimpse of their track record by checking out some of their webpages, but you still have to ask them in person to see if they can give you consistent information. The more reliable the track record is, the better.

You can additionally look for any certification to verify their license.

  1. Do you have any pending lawsuits?

Since licensed customs brokers frequently deal with customs authorities, dealing with any lawsuit could mean incompetence and a tarnished reputation. While the firm you’re talking with might avoid topics such as this, it’s still quite better to ask them and verify their answer by thorough research.

  1. What is your vision?

Know more about the short and long term goals of the company. Remember the possibility of spending a great deal of time with them, so you better be aware of how assertive they can be. You can give more emphasis on their vision regarding the usage of modern technology in helping their clients clear different shipping processes.

  1. How much will your service cost?

This question will most likely start a long conversation consisting of negotiations between you and the broker. Prices can vary based on your agreement but be sure to have a detailed breakdown of all the services that are going to be rendered. You should also talk about their payment processes to avoid hassles in the future.

  1. Can you provide quality service based on client needs?

Your new licensed customs broker must at least have some experience when it comes to dealing with clients that are related to your industry. This can be an indicator that they will be able to provide your needs as well. Keep in mind that versatility is an attractive trait in business especially those that offer expert services.

Excelsior Worldwide Freight Logistics conducts free orientation for those who are willing to learn. It is our advocacy to share our knowledge & experience worth more than a decade in the business. Visit our website today at www.excelsior.ph to learn more about our service.

5 Common Shipping Mistakes to Avoid

excelsior on December 15, 2019

5 Common Shipping Mistakes to Avoid

Mastering the nuts and bolts of shipping is a crucial skill for businesses that specialize in transporting their products from one place to another. While shipping is simply defined as placing goods or people on a carrier to be brought to its intended destination, it could be a pretty lengthy and complicated process for those with limited knowledge about logistics, as well as customs requirements.

Shipping also plays a vital role in the capability of an enterprise to provide the highest degree of customer experience to their clients. One way to do this is of course, avoiding mistakes in every shipping transaction as much as possible. Though such a task is easier said than done, the first step a business owner must do is identify the potential shipping errors ahead of time.

Fortunately, we’ve compiled some of the most common shipping mistakes as well as efficient methods of avoiding them:

 

Improper Packaging

An easy way to increase the chance of shipment damage is by incorrect packaging. Products may vary in shapes and sizes, and some might be even so fragile that a well-secured packaging is required in order for it to be safely moved from point A to point B.

When shipping a set of products, have a thorough assessment of the most appropriate type of box, and invest in high-quality protective cushioning if needed. Having a professional in the shipping industry is another surefire way of preventing damages in shipment brought by improper packaging.

 

Wrong Shipping Address

Once shippers failed to pay more attention to what is written on the Bill of Lading (BoL) miscommunications with the carrier company might arise. For example, a wrong shipping address could result in freight transporting the products in the wrong destination.

Checking the shipping address multiple times is one and the only solution to prevent this mistake. Make sure that every detail is correct, including the ZIP codes of the intended place.

 

Letting a Single Carrier handle all Shipments

Availing the service of a single carrier can help foster positive relationships between business the carrier company. However, relying on a single carrier could prove to be a risky option. In the event that a well-trusted carrier company experienced a strike or downscaling of its facilities, its clients could end up having large piles of shipment with no one to move it around.

Creating more connections with multiple carrier companies is one way of avoiding such hassle, not to mention access to opportunities in terms of having competitive rates and operations.

 

Inaccurate Shipment Weight

Carrier companies tend to be prudent and specific when it comes to weighing the shipments of their clients. They always have certified scales placed at their terminals to make sure that every shipment’s weight is worth the fee they require. Some businesses neglect to weigh their products and as a result, they are forced to pay an additional fee on their bills.

Purchasing a high-quality weighing scale and using it on products beforehand prevents any unnecessary expenditures in shipping.

 

Not Keeping Delivery Receipts

Delivery receipts serve as evidence that a shipment is free from any damage before the delivering process. Presenting these receipts on situations such as shipment damage provides validity that can save a business from bearing all the costs brought by the damages during the shipment process.

 

Excelsior Worldwide Freight Logistics conducts free orientation for those who are willing to learn. It is our advocacy to share our knowledge & experience worth more than a decade in the business. Visit our website today at www.excelsior.ph to learn more about our service.

Sources:

Tips Before Starting an Import/Export Business

excelsior on November 15, 2019

Tips Before Starting an Import/Export Business

Setting up a business is not a simple task, let alone offering products that can reach more people on an international scale. If you’re an aspiring entrepreneur looking to plunge into the tough competition of foreign commerce, you must be equipped with adequate skills and knowledge in order to survive.

Running an import-export business is now much more convenient than before with the advent of modern technology. The use of the internet to communicate with customers has become commonplace and the learning curve in managing different operations mostly requires competent organizational skills.

While you don’t have to be an expert in this kind of industry, it is still a necessity to be aware of certain things that can optimize your chance of growth as well as minimize the effects of potential risks. The possibility of failure is always present in any form of business, so you should always pay attention to every detail.

Here are some of the best tips that can help you when starting out an import or export business:

Consider Your Products

Since you will be taking on an import-export trade, the products that you’re going to sell can become the X factor for fate of your company for the following years. Think carefully when deciding which product should you sell and be sure to stick with it. Once you figured out the best products for you, use your judging skills to know whether these products are worth your investment or not.

Always keep these two important questions in mind:

  • Do people want those products?
  • Do you know how to sell it properly?

If you are confident that your products can become something that is sought-after by many people across cultures and you know at least the fundamentals of selling it properly, then you now have a set of products to sell.

Find Your Target Market

So you already have some products to sell, and the next problem you need to solve is how you can find the people that are more than willing to buy them. Those people are your customers, your target market. Identifying them from a specific country can be a herculean task, so you’ll be needing extra time and probably a hand to do this the right way.

Prepare in-depth research regarding the latest market trends of the particular location where you desire to offer your products. There are several agencies that can do this for you in case you have a pretty hectic schedule.

Set up a Website and Develop an Online Presence

Creating a website provides your company and your products the needed exposure for online users around the world. Take advantage of multiple online platforms to market your products especially your target market. Be responsive to customer feedback and complaints and establish an online community that can enhance their loyalty and ultimately accumulate sales for your company.

Amp up Your Logistics Connection

One of the most challenging things that your import-transport business will have to overcome is making a solid system or plan on transporting your products. With a bunch of legal processes that concern your line of profession, you must be ready to outsource services in logistics. Take for example freight forwarders. Hiring a freight forwarding agency can significantly lessen your load of tasks in complying with customs requirements and other legal processes. They can even help you find the best carrier so that you can cut down your expenses in shipping.

Excelsior Worldwide Freight Logistics conducts free orientation for those who are willing to learn. It is our advocacy to share our knowledge & experience worth more than a decade in the business. Visit our website today at www.excelsior.ph to learn more about our service.

 

Sources:

Pros and Cons of Less Container Load (LCL)

excelsior on October 15, 2019

pros and cons of less container load

Less Container Load, or more commonly known as LCL refers to a type of shipment wherein the shipper negotiates with a consolidator to book his cargo even if it doesn’t contain enough goods to accommodate a fully loaded container. The consolidator will then arrange a full container load (FCL) that comes from different shippers. Freight forwarders usually offer this kind of service by helping their clients book a full container and ensure that these goods will successfully arrive at the destination.

If you’re a business owner trying to ship your goods to reach a higher number of customers, you might want to try LCL. But first, you must be aware of several pros and cons of this specific method of transportation:

Pros of Less Container Load:

  1. Affordability – Perhaps the thing that makes LCL a viable choice amongst shippers nowadays is because of its affordability. You don’t have to pay for transporting a full container load as you are only charged according to the volume or the specific area occupied by your cargo inside a carrier.
  2. More Freedom – Availing an LCL manner of transport gives you access to an array of flexible choices especially on the way of how you wanted to receive your shipment. You are pretty much free to decide whether you wanted to go and pick the cargo yourself from the warehouse or not. There’s no need to wait for any middleman to accomplish such job.
  3. You can Still Enjoy the Benefits of FCL – Since the consolidator you hired arranged your cargo into an FCL, you will certainly enjoy the same benefits. In other words, you will only pay for a specific space while your cargo is being transported to the very same facilities.
  4. LCL can Reduce your Expenses in Inventory Management – Since it’s quite convenient to ship smaller orders through LCL, this transporting option also minimizes inventory management costs so you can focus your precious resources on more important matters.

Cons of Less Container Load:

  1. Consignment inspection can be troublesome at times – Since your shipment will be transported with other goods from multiple consignees, it could sometimes mean trouble. In case one of the consignee’s shipment turns out to be something illegal, expect delays or even cancellation of the shipping process.
  2. Shipping Delays can occur – While the transit time for LCL is similar to that of an FCL, having shipping delays with LCL is still possible. The reason for this hassle is because it usually takes around 1 to two days for the container to be thoroughly processed and loaded.

Despite the few disadvantages of transporting goods via LCL, it can never overshadow the benefits that make it a more popular option for many shippers of different business industries.

Excelsior Worldwide Freight Logistics conduct free orientation for those who are willing to learn. It is our advocacy to share our knowledge & experience worth more than a decade in the business. Visit our website today at www.excelsior.ph to learn more about our service.

 

Sources:

Excelsior Worldwide Logistics Corp.