International Business INB345 Lecture Notes - Lecture 7: Tonne, Freight Forwarder

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LECTURE 7: LESS THAN CONTAINER LOAD ( LCL ) SHIPMENTS (P.242/3;
P. 246)/ CONSOLIDATIONS/ GROUPAGE
LCL SHIPMENTS ARE “SMALL” OCEAN FREIGHT SHIPMENTS WHICH, DUE
TO THEIR SIZE, and SHOULD NOT BE SHIPPED FCL (the price to ship via LCL is
less expensive than the price of a 20’ container).
LCL VERSUS FCL IS DETERMINED BY COMPARING THE SHIPPING COSTS.
FCL IS A FLAT RATE FOR THE USE OF A CONTAINER AND LCL IS A
WEIGHT OR MEASURE RATE (W/M), THE PRICE VARIES BASED ON THE
SIZE OF THE SHIPMENT. (P. 246)
WHISKEY SHIPMENT:
PALLETIZED
EACH PALLET 100cm x 120cm x 20cm
LOADED 100cm x 120cm x 195cm (50 cases)
FCL 20’: 8 pallets (400 cases)
FCL 40’: 20 pallets (1000 cases)
A customer orders 150 cases?
RATES: 20’ $ 1,200.00/ 40’ $1,600.00/ LCL $150 per w/m
LCL RATES:
“ $_______ per metre cubed (measure) or per metric tonne
(weight); whichever amount is higher
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