What is co-loading

 

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.

 

Have you satisfied with this article about Co loading?

 

Would you like to share your experience in handling Co loading?

 

 

The above information is a part of Export Import Training course online


Write below your comments and thoughts about this article – Co loading. 

 

Other posts about Import Export online tutorial
What is Black list certificate from Shipping Line
Difference between Vessel arriving and Vessel berthing in export import trade
What is Fumigation in Export and Import
Rummaging
What is Dry Port
Difference between Demurrage and Detention in import
What happens if Date difference in HBL & MBL
Difference between mother vessel and feeder vessel
Excise and Customs - Click here to read complete notification under Budget 2014
How to get Export Orders?
How to settle dispute in Exports and Imports?
Click here to know India Trade Classification(ITC)
Pre shipment bank finance to suppliers for exports through other agencies
Types of export containers
Measurement of export containers
Exim Policy of India 2015-20
MEIS, Merchandise Exports from India Scheme
SEIS, Service Exports from India Scheme
Merge your Commercial Invoice and Packing List for all your future exports
Export procedures and documentation

 

We have IEC, can we export from all ports?

What are the legal documents in exports

What does ECGC do on default of payment of any overseas buyer?

Post shipment finance in Export Business

PRECAUTIONS TO BE TAKEN WHILE USING CONTAINERS FOR EXPORTS

 Printing machine error with customs – Un able to hand over documents to carrier.

 Procedure and Documentation for Filing Claim of Marine Insurance.

What is VACIS exam in US import customs clearance

When can an exporter release bill of lading from shipping company?

When does exporter get EP copy of shipping bill after customs clearance

Procedure for Central Excise Clearance Under Claim of Rebate

Procedure to claim Duty Drawback

 Procedures and documentation on Triangular shipments

Procedures for Re-imports

 Procedures to claim brand rate of draw back

 Procedures to file IGM (Import General Manifest)

 Procedures under Re-exports

 Re warehousing procedures under STP and EOU units.

 Register with Export Promotion Council

Risks and solutions in export business

RISKS NOT COVERED BY MARINE INSURANCE

 

Rummaging

Transferability of Bill of Lading

Transhipment - A redefinition

Travelers to India under import duty exemption, Frequently Asked Questions Part 2

Triangular export

 Triangular shipment

Types of Insurance Documents.

 Import General Manifest (IGM)

Importance of Bill of Lading

Introduction to this web site.

Is Airway bill a documents of title?

 Is Customs House Agents (CHA ) required to be appointed mandatory?

 Is DP terms of payment safe in export business?


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.

Arjun M.: Hey man, thanks for a thorough walkthrough. While reading the example, shouldn't be the last element be A

Discussion Forum

You can also share your thoughts about this article.
Any one can answer on question posted by Readers