Global LCL shipping expected to increase 1.3 times to 3.8 million TEU by 2025
Experts note upward trend of LCL shipping in Russia
LCL shipping is expected to increase considerably over the coming years, hence the demand for investments in storage infrastructure and terminal facilities, IAA PortNews correspondent cites Aleksandr Aleksandrov, founder of Tradex LLC (agent of ECU Worldwide), as saying at the #Forcontainers conference.
According to the speaker, LCL used to be looked at as a niche product offered as an additional service for clients which sometimes require shipping of minor volumes of cargo from an exotic location without a full container load.
“However, the recent 30 years have seen the appearance of a global market of billions in capacity: global shipping of containers is estimated at 200 million TEU per year, global LCL shipping – at 2.8 million TEU per year, which accounts for 1.5% or about 57 million cbm,” said Aleksandr Aleksandrov referring to the international research.
Major four companies consolidating such cargoes are Vanguard Logistics, Shipco, ECU Worldwide and CWT Globelink.
Among the growth drivers in this segment is the surge of freight rates, says the expert.
“Several years ago, freight rates in Eastern Asia was below $2,000 with the breakeven point for LCL shipping making 5 cbm maximum, or 2-3 tonnes. Everything exceeding that level was more profitable to transport in a separate container. The surge of freight rates by 4-5 times increased the breakeven point on a pro rata basis: today, LCL is reasonable for 20-30 cbm which is 10-30% cheaper than chartering a container,” said Aleksandr Aleksandrov.
According to him, companies focusing on LCL shipping and investing in storage infrastructure and terminal facilities can get a good cargo base in the future.
