Shipping Crisis: Gain Control of Ocean Freight Costs

The present situation of ocean shipment in China

You must have seen it on the international news recently. Shanghai Port was closed due to a fire. Yantian Port is closed, and all goods are moving through the north of China. This puts a lot of pressure on the ports of Tianjin and Qingdao. As we all know, China has become the world’s workshop in a short time because of the COVID-19 outbreak. Currently, some forwarders can’t even get to the containers. To avoid an overstock of goods, we have found an unconventional method of operation, which can reduce the cost of shipping.

LCL Shipping (Less than Container Load)

Some freight forwarders aren’t able to book a whole container as they cannot fill it. Even if a whole container can be booked, the cost of the whole container will still be higher than the cost of LCL in bulk. Take a shipment of LCL containers as an example, we would split a whole container of goods into several batches, then ship several batches by LCL. This way, the total cost is lower for vendors than the cost to ship a whole container.

For example: Company “A” has one full container load needing transport. Instead of booking one Full Container Load (FCL) of 33CBM (cubic meters), the team would assist in breaking the full load into three LessThan Container Loads (LCL) of 11CBM each. The total cost of three LCL shipments would be less than one FCL.

Average cost of a FCL: $2000-3000 (33CBM)

Average cost of LCL: $25-$140 per CBM (cubic meter)

shipping crisis

Confirm the Ship Date ASAP and Wait In Line For the Position

Moreover, after receiving freight quotes from several forwarding companies for comparison, it is best to choose the most suitable one as soon as possible to lock-in the shipping date. Because ocean freight rate are going up by leaps and bounds at the moment, rates can fluctuate drastically. Additionally, larger and more reliable freight forwarding companies might be easier to get containers from!

In conclusion, trust your forwarder and keep in close touch. If they can hold or book a container, don’t hesitate to book immediately. Booking early means


By Eileen Song

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