LCL, FCL and consolidating sea freight from Japan

Sea freight is the cheapest way to move volume out of Japan, and consolidation is the reason. This guide explains LCL, FCL and how combining goods from several suppliers changes the maths.

The problem consolidation solves

Buy goods from three suppliers in different parts of Japan and you have three small shipments, three sets of documents and three freight bills. None is big enough to justify a container, and each is too heavy for air.

Consolidation solves this. The goods are received at one warehouse in Japan, checked, packed together into a single consignment and shipped once: one set of documents, one freight charge, one delivery.

LCL or FCL?

• LCL (less than container load) — you pay for the space your cargo occupies, measured in cubic metres. Ideal for one to twelve pallets, or anything under roughly fifteen cubic metres.
• FCL (full container load) — you book the whole container, normally 20ft or 40ft, and pay a flat rate. Economical once your volume passes around fifteen cubic metres.
• A useful rule: the point where FCL becomes cheaper than LCL is usually somewhere around half a container.

LCL involves more handling, because your cargo is loaded and unloaded alongside other importers' goods, so it is a little slower. Professional export packing removes most of the risk that comes with it.

Why consolidate in Japan rather than at the destination

• You inspect your goods before they leave the country.
• Problems are corrected while the supplier is still reachable.
• Packing is done to one standard by one team.
• Fewer shipments means fewer customs entries and lower clearance costs.
• You control the timing: goods can wait in the warehouse until the load is full.

Transit times and expectations

From Kobe, ocean freight to North America takes roughly 10 to 20 days port to port, to Europe around 30 to 45 days, and to Oceania four to six weeks. Add loading, departure, customs clearance and inland delivery.

Sea freight is not fast, but it is predictable. Once you know the schedule you can plan around it, and the saving per kilogram against air usually repays the extra waiting many times over.

When air freight makes more sense

Air freight wins when the goods are small and valuable, when a sale depends on speed, or when an item is needed to complete an order that is already in flight. Compare the difference in cost with the difference in customer experience and the answer is usually obvious.