{"id":6500,"date":"2020-08-08T14:24:21","date_gmt":"2020-08-08T18:24:21","guid":{"rendered":"https:\/\/www.letterofcredit.biz\/?p=6500"},"modified":"2020-09-01T04:37:08","modified_gmt":"2020-09-01T08:37:08","slug":"letter-of-credit-condition-lcl-lcl-shipment-prohibited","status":"publish","type":"post","link":"https:\/\/www.letterofcredit.biz\/index.php\/2020\/08\/08\/letter-of-credit-condition-lcl-lcl-shipment-prohibited\/","title":{"rendered":"Letter of Credit Condition: LCL\/LCL Shipment Prohibited"},"content":{"rendered":"<p>LCL is an abbreviation that is used mostly in international shipping. Its long form is <a href=\"https:\/\/www.letterofcredit.biz\/index.php\/2019\/12\/31\/full-container-load-fcl-and-less-than-container-load-lcl-explanations-with-examples\/\">Less than Container Load (LCL)<\/a>.<\/p>\n<p>In an LCL shipment, a freight forwarder finds at least two exporters, who would like to ship smaller volumes of cargo from the same port of loading to the same port of discharge.<\/p>\n<p>Then the freight forwarder consolidates these smaller load units into one full container. Exporters share the freight cost proportionately, based on each volumes of cargo.<\/p>\n<p>LCL shipments can only be arranged by freight forwarders.<\/p>\n<p>LCL shipment is one of the great solutions that our modern international logistics sector provided to us and it is nothing wrong to use an LCL shipment.<\/p>\n<p>However, LCL shipments are not risk free. Because two or more exporters share the same container, anything does not go well for one cargo unit may effect delivery of other cargoes.<\/p>\n<p>In order to eliminate risks may arise from LCL shipments, in some letters of credit transactions issuing banks prohibit LCL shipments.<\/p>\n<p>In these situations, exporters have to comply with the letter of credit terms and make sure that they have shipped the goods in FCL, but not LCL.<\/p>\n<p><span style=\"color: #ff6600;\"><strong>Example:<\/strong><\/span><\/p>\n<p>An exporter in Australia signs a sales contract with an importer in Bangladesh to supply of textile chemicals.<\/p>\n<p>Under field 47-A letter of credit states that LCL shipments are prohibited.<\/p>\n<p><strong>47A\/Additional Conditions<\/strong><\/p>\n<ul>\n<li>Shipment must be made through FCL\/FCL container basics and LCL\/LCL shipment strictly prohibited.<\/li>\n<\/ul>\n<p><a href=\"https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/FCL-BILL-OF-LADING-EXAMPLE-ISSUED-UNDER-LETTER-OF-CREDIT.png\" target=\"_blank\" rel=\"noopener noreferrer\"><img decoding=\"async\" class=\"aligncenter wp-image-6526\" src=\"https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/FCL-BILL-OF-LADING-EXAMPLE-ISSUED-UNDER-LETTER-OF-CREDIT.png\" alt=\"\" width=\"500\" height=\"667\" srcset=\"https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/FCL-BILL-OF-LADING-EXAMPLE-ISSUED-UNDER-LETTER-OF-CREDIT.png 888w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/FCL-BILL-OF-LADING-EXAMPLE-ISSUED-UNDER-LETTER-OF-CREDIT-225x300.png 225w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/FCL-BILL-OF-LADING-EXAMPLE-ISSUED-UNDER-LETTER-OF-CREDIT-768x1024.png 768w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/FCL-BILL-OF-LADING-EXAMPLE-ISSUED-UNDER-LETTER-OF-CREDIT-696x928.png 696w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/FCL-BILL-OF-LADING-EXAMPLE-ISSUED-UNDER-LETTER-OF-CREDIT-315x420.png 315w\" sizes=\"(max-width: 500px) 100vw, 500px\" \/><\/a><\/p>\n<p>The exporter presented a FCL bill of lading in order to comply with the letter of credit term. The bill of lading clearly states that the shipment has been affected by FCL\/FCL terms.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>LCL is an abbreviation that is used mostly in international shipping. Its long form is Less than Container Load (LCL). In an LCL shipment, a freight forwarder finds at least two exporters, who would like to ship smaller volumes of<\/p>\n","protected":false},"author":1,"featured_media":6530,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[209,22,258],"tags":[567,565],"class_list":["post-6500","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-how-to-work-with-a-letter-of-credit","category-basics","category-logistics","tag-lcl","tag-less-container-load"],"_links":{"self":[{"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/posts\/6500","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/comments?post=6500"}],"version-history":[{"count":0,"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/posts\/6500\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/media\/6530"}],"wp:attachment":[{"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/media?parent=6500"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/categories?post=6500"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/tags?post=6500"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}