Costly Airfreight and Container Shortages is Pushing LCL Options
Very high airfreight rates and the global container shortage is now driving demand for less-than-container load (LCL) shipping services. With air travel far less frequent and reaching record-high prices, as well as stock quantities fluctuating, LCL gives the flexibility to fill up only the space you need in a container, rather than renting the whole box.
At Uneek-Group we think the LCL trend provides a great insight into the future needs of cargo owners, namely transparency and flexibility. One of the biggest pain-points for LCL has always been its lack of transparency, often, nearly a dozen different companies will assist in getting a shipment from A to B and tracking this progress between so many logistics companies isn’t just difficult, it’s nearly impossible. And without it, the headaches may outweigh the savings. However, at Uneek we do take on 90% of the shipment plus manage the process from A to B as we have done for many years.
The rise of LCL has been on the cards for several years, with the global e-commerce boom, the rise of emerging markets and shifting sourcing trends. We at Uneek believe that LCL also has a more strategic role post-pandemic since trade and taxation has made manufacturing overseas harder, unpredictable and more expensive. The pandemic has also made companies more aware of the need for faster, localised production and shipping.
With all that in mind, we think LCL will continue to be used by small and medium-sized companies to replenish stock with much more flexibility. Having the option to quickly and easily upgrade or downgrade shipment sizes, especially on a more local level, will give these businesses the much-needed control they need during times when it can feel totally out of their hands. Meanwhile, the current empty container shortage is also pushing shippers to inquire about LCL options.
If you have any questions about freight forwarding and air freight rates or the global container shortage, pricing and availablity on LCL options, please contact Uneek-Group today.
Uneek Group Ltd +44 (0) 20 8984 0425 or email [email protected]