Shipping Knowledge Base | Freight Forwarding & Logistics Guide

LCL (Less than Container Load) is a shipping method where your cargo doesn't fill an entire shipping container. Instead, it's consolidated with other shipments in the same container.

When to Use LCL:

• Your shipment is smaller than 15-20 cubic meters
• You want to save costs on smaller shipments
• You don't have enough cargo to fill a full container
• You need flexibility in shipping schedules

LCL Benefits:

• Cost-Effective: Pay only for the space you use
• Flexible: Ship any quantity without waiting to accumulate more cargo
• Accessible: Available for small and medium businesses
• Regular Schedules: Frequent departures available

LCL Process:

1. Your cargo is collected and packed at origin warehouse
2. Consolidated with other LCL shipments
3. Loaded into a container
4. Shipped to destination port
5. Deconsolidated at destination warehouse
6. Delivered to your location

FCL (Full Container Load) is when you book an entire shipping container exclusively for your cargo.

When to Use FCL:

• Your cargo fills 15+ cubic meters
• You need complete control over your shipment
• You want faster transit times
• You're shipping high-value or sensitive goods

FCL Benefits:

• Exclusive Use: Complete container for your cargo only
• Faster Transit: No consolidation delays
• Better Security: Container sealed with your cargo only
• Cost Per Unit: Lower cost per cubic meter for large shipments

Container Types:

• 20ft Container: ~33 cubic meters capacity
• 40ft Container: ~67 cubic meters capacity
• 40ft High Cube: ~76 cubic meters capacity
• Refrigerated Containers: For temperature-sensitive goods

HSN (Harmonized System of Nomenclature) is an internationally standardized system of names and numbers to classify traded products.

Purpose of HSN Codes:

• Customs Classification: Determines import/export duties
• Documentation: Required for shipping documents
• Tax Calculation: Used for GST and other tax calculations
• Trade Statistics: Helps in trade data analysis

HSN Code Structure:

• 2 Digits: Chapter (broad category)
• 4 Digits: Heading (more specific)
• 6 Digits: Sub-heading (detailed classification)
• 8 Digits: Tariff item (most specific)

Examples:

• Electronics: 85 - Electrical machinery and equipment
• Textiles: 62 - Articles of apparel and clothing
• Machinery: 84 - Nuclear reactors, boilers, machinery
• Chemicals: 28 - Inorganic chemicals

Why It's Important:

• Accurate classification avoids customs delays
• Ensures correct duty rates are applied
• Required for all international shipments
• Helps in trade compliance and documentation