What is co-loading

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What is co-loading?


Co loading is a term used in export and import trade especially in the area of freight forwarding. What is co loading? How does Co loading work? Is there any advantage in Co loading? What are the demerits in Co loading?

 

The term co loading means transferring cargo by a freight forwarder to another carrier either to a freight forwarder or consolidator. Co loading is a common procedure in import export trade especially for less containerload – LCL - transactions. Under LCL shipments, some of freight forwarder co-load cargo to another freight forwarder final destination. The carrier who co-loads the cargo is called co-loader.What is co-loading

 

Co-loading with more than two freight forwarders is not a good practice as the destination delivery order charges and the formalities makes shippers and consignees more complicated rather than monitory loss under destination delivery charges.

 

For example, if A accepts cargo from X and co-loads the cargo with B. B again transfer goods to C a main carrier of goods. At destination port, Z who is the representative of C delivers cargo to Y who is the representative of B at load port. At destination port, Z collects Delivery Order Charges from Y, Y collects Delivery Order Charges from X and in turn, X collects Delivery Order Charges from Y.

 

Is there any advantage in Co loading?

 

Freight under co loading could be cheaper, as some of the co-loaders have competitive freight rates to various locations. The cost of carriage could be lower, if moved through a co loader. However, such advantage has to be balanced with the destination delivery charges and other inconvenience, if more than one co loader involved.  Also read What is consolidation of cargo What is LCL cargo less container load cargo    Consol DO and liner DO

As per my opinion, co-loading of cargo with more than one freight forwarder is not suggestible in an LCL movement of goods under Imports and Exports.

 

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Comments


paulo roberto ribeiro: Air shipments can be done as co loading to Brasil ? thanks much for your help.

DJ: I got a huge problem with my cargo to China the agent i got here in the Phils told me they have counterpart in China i asked the agent to inquire any docs needed to be prepare from the part of the consignee the agent told me no documents needed to be prepared in china from the consignee part since broker will do take care of the docs. the cargo will go transshipment via HK as the cargo is in HK i was informed there is huge problem with the documents turns out that the consignee need to have import license and 3'C for the commodity.And we dont have any i know it fr the beginning as i file a complaint against the agent n forwarder i found out that they r a co loader the reason they did not tell me because i might back out.Is this a fair treatment?I am a first timer shipper.They gave me option to pay i may pay here or i may pay there both ways are ok so i pay here they said port to port.As we have problems now they told me they dont have any liabilities anymore since the cargo is already is China but it cannot be release since no import permit no 3'C am i being treated fairly as a Client?On the 1st place they told me no documents needed and now there is problem they will tell me now non of their business anymore?As a client i have the right to be informed properly but yet they hide it from me.This is unfair i hope this comment will give everybody a lesson.The Agent/Forwarding company should be transparent to their client sp when big money is involve.

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