Although the two main shipping options for shippers looking to leverage international shipping are LCL and FCL shipping, there are times when both do not cut it for the shipper. For instance, imagine shipping between 15 and 20 CBM of cargo. It is too small for an FCL shipment, so paying for that could be costly, yet it is too large for LCL shipping. This is where shared container load shipping services come into play.
What is The Shared Container Load Shipping (SCL)?
The shared shipping container load is a cross between less-than-container load and full container load shipping that allows shippers with cargo under a certain volume (typically 15 to 20 CBM) to enjoy a cost-effective yet efficient shipping option. It works by pairing the shipper with one other business looking for similar capacity so that they both own the container space. This is a cost-effective and safe alternative to bearing the entire cost of an FCL shipment or sending it in an LCL shipment with three or more shippers sharing the container.
With shared container load shipping, the shipper enjoys all the benefits of FCL shipments at less than the cost of LCL shipments. This service is designed to meet the needs of various customers, from small businesses to enterprises running scheduled freight.
How Does SCL Shipping Work?
The shared container load shipping is similar to the LCL shipping with one major twist. Unlike LCL shipping, which brings together several shippers and their cargo under one container, SCL shipping only works between two primary shippers, each needing a similar volume of space for a similar type of cargo. Silq has pioneered the SCL segment, leveraging this method to save thousands of dollars for its trusted client base. Here is how it works:
1. Shipment Booking
The process begins when a shipper books their SCL shipments via Silq or any other freight forwarder offering the service. Booking the shipment signals to Silq that such a shipment will soon be available, prompting the company to match that shipper with another looking to ship via SCL. If there is none, the company begins to leverage its huge customer base to find the perfect match for that shipment.
When matching, it is important to ensure that the shippers have a similar type of cargo or cargo that can be consolidated together. For instance, glass sculptures will not be clubbed with furniture, as this can lead to trouble.
2. Cargo Collection and Consolidation
When the shipment is ready for shipping, the freight forwarder will send in transportation to collect the SCL cargo from the warehouse or facility where the shipper has stored it. The cargo is transported to a consolidating facility, which allows the freight forwarder to effectively collate and consolidate the shipments into one container before they are taken to the carrier or shipping line.
The consolidation process is particularly important because it allows the freight forwarder to properly manage the container space, ensuring that both shipments are properly accommodated and secured. This will be critical in avoiding damages and lost shipments. The consolidation occurs within the same port region, ensuring that the SCL container is treated like an FCL container, minimizing the risk of it being reopened at another port of call.
3. Loading
After consolidation, the container is transported to the carrier, which is in charge of commencing international shipping. But before that, the container has to be effectively loaded into the vessel that will oversee this transportation, and that process has to be handled delicately to avoid damage and ensure safe transit. This stage of the process is managed by the freight forwarder and the carrier.
4. Shipping and Customs Clearance
The shipping process begins after the cargo has been loaded onto the carrier vessel. However, there are certain precautions that the freight forwarding business has to manage. Some of them include documentation, shipment tracking, navigating customs clearance, and the container unloading process when the cargo arrives at the destination port.
5. Deconsolidation
At the container freight station, the container is cleared and processed out of the port by the freight forwarder and then taken to a warehouse or facility similar to the consolidation facility, where the container is emptied and then returned to the carrier or used to carry other shipments or cargo as the freight forwarder sees fit. Like the consolidation process, the deconsolidation process must be handled properly to ensure no damages or missing shipments.
Advantages of SCL Shipping
Because SCL shipping is a hybrid of the two most common forms of shipping, it takes the best out of both of them. Here is why shippers prefer it:
These services ensure a smooth and efficient shipping process for all types of cargo.
1. Faster Shipping
Although the SCL shipping entails consolidation, which is a slow process, it only has to pair with one shipper. This shipper has to have the same nature of goods and be headed to the same location. This way, the shipping process is much faster than LCL shipping, which has to make some stops in most cases because it has to unload and reload some of the shipments not headed to the carrier's final destination.
2. Safer Shipping
Because the shipping process is headed to the same location and carries goods of the same nature, there is less handling. This means that the goods are better protected against loss of shipment, theft, or damages from handling and bad weather that LCL shipments are exposed to because of the nature of the shipping option.
3. Cheaper Overseas Shipping
For all its benefits and ability to help shippers reduce the cost of shipping, LCL shipments become more expensive as the size of the cargo grows. That means beyond a certain volume, LCL shipping becomes unprofitable for shippers. However, with SCL shipping, that is just the sweet spot that allows shippers to navigate overseas shipping for large volumes of cargo that may not fit into a full container load, but at the same time, it doesn't have to cost so much for these shippers.
How Silq Helped A Furniture Manufacturer Overcome Shipping Anxiety By Providing an SCL Alternative
A small glass sculpture seller received an order from a boutique retailer in another continent. The shipment was too large for LCL but not enough to fill an entire container. Naturally, the company became worried about the high cost of FCL shipping and potential delays with LCL. That was until Silq got involved. This approach ensures that all customers receive tailored shipping solutions that meet their specific needs.
Silq’s platform uses advanced algorithms to match the company with another shipper heading to the same destination and carrying compatible cargo. Silq handled the entire booking process, coordinating pickup from the company’s warehouse and consolidating the shipment with the other matched cargo at their secure facility.
With an experienced team, Silq was able to ensure both shipments were professionally packed and loaded into the container, providing real-time tracking throughout the journey. Meanwhile, the sculpture company was able to monitor the progress of its shipment, easing concerns about potential delays.
What was The Outcome?
Thanks to Silq's SCL solution, the company successfully delivered its furniture to customers on time and within budget. It achieved this while avoiding the high costs of FCL and the potential delays and risks associated with LCL.
How Silq’s SCL Shipping Transforms Shipping Operation
Comparing the SCL to the traditional LCL, you quickly notice that it is only viable for shipments under 15 CBM. After that point, shipping partially used FCL containers becomes more economical than shipping LCL, irrespective of the competitive prices available. There is always a ceiling.
Silq's Shared Container Load (SCL) is a service designed for high-volume shippers that combines cargo from a maximum of three accredited shippers into one container. This allows shippers to pay only for the space they use and reduces shipping costs. Even lower than LCL shipping. It is the cheapest, fastest, and most carbon-friendly way to move shipments or cargo between 15 to 50 CBM. Silq's SCL shipping services are designed to provide cost-effective and efficient solutions for high-volume shippers. Connect with us today and see the difference.
