Although this may sound like a compromise, many companies find significant benefit in moving smaller cargo volumes.
For example, one of our retail customers with a manufacturing facility in China achieved inventory holding cost savings in their North America distribution center by switching from full container load (FCL) shipments once every two months to LCL shipments once a month. The retailer was able to move less stock each time, which meant they reduced unnecessarily high inventory levels near their key markets. More frequent shipments also lowered the risks associated with an unexpected shipment delay.
Another of our customers, a light industrial manufacturer, discovered that LCL could help improve cash flow – something that every company is more mindful of these days. Each time the manufacturer shipped by LCL, the shipment costs and the relevant taxes and duties were lower than by FCL. Paying smaller amounts more frequently is a welcome way to spread shipment expenditure.