What are the advantages and disadvantages of the Consol Box

advantages

1. If you are using a consol service, you don’t need to handle certain activities or incur costs associated with an FCL shipment such as

• picking up empty container from the line’s depot
• ensuring clean and sound condition container
• packing the container at your own or 3rd party warehouse
• arranging labour for the packing
• taking the full back to port
• 
  

2. When using a Consol Box, you only pay for the space that you use,The consolidator will calculate the space or weight (freight ton) your cargo utilises in the container and will charge you accordingly.. This cost may be cheaper than the full cost of FCL based on the usage of space/weight in the container.

3. Using a consol box may be advantageous if you want to avoid storing a large inventory of goods.. If scheduled correctly, you can receive the right amount of stock replenishment when you need it.. This also helps in managing and budgeting your cash flow.

4. The consolidator will advise you of specific packing dates open for specific destinations which will allow you to schedule your cargo deliveries.

5. You can also use consol service for testing the service reliability of a new supplier or for testing new products that you may be buying.. The smaller quantities provide flexibility to the shipper and consignee.

6. You may be able to secure a bill of lading as soon as you hand over the cargo to the Shipping Line (Master Bill of Lading in the case of LCL) or Consolidator (House Bill of Lading in the case of consolidation cargo).. The sooner you receive your bill of lading, the sooner you may be able to negotiate your payment with the bank or get your money from your customer upon submission of the bill of lading..

disadvantages

But, as with any business/service there are some cons with a Consol Box as well.

1. Finding a reliable consolidator with industry experience is one of the main challenges when shipping cargo in a consol box.

2. Consol shipments require more planning and organisation and shipper needs to be aware of cost, pricing, frequency of shipments, transit time, cargo dimensions in order to ensure effective planning.

3. A Consol box may be susceptible to delays at the origin CFS waiting for other cargo to the same port to be consolidated.

4. Due to multiple handling there is a chance of cargo damage as compared to FCL because the cargo maybe handled by a few different consolidation points.. There may be some destinations which require the cargo to be consolidated or handled twice.

5. There are chances of the entire container being detained for customs exam or investigation even if only one of the cargoes in the container is suspect.

6. There may be a difference in transit time between LCL and FCL to the same port and the shipper and consignee must be aware of this and arrange their shipments in line with this.

7. With a Consol Box you will be receiving a House Bill of Lading of the operator but you may still have to wait for the full Master Bill of Lading of the shipping line to be released before you secure release of your cargo.

Finally

As you can see, there are several advantages and disadvantages of using a consol box. But its not just about pros and cons.. Whether you want to use a consol box or not depends on what is suitable for your shipping needs.