LCL CARGO CONSOLIDATION BUSINESS GROWING STRONG

The e-commerce boom has made shipping smaller more specific consignments frequently the new norm, driving demand for LCL cargo consolidation which has seen strong growth in the past decade with MNCs taking a plunge into the sector, while SMEs find it cost and time effective

- OMER AHMED SIDDIQUI

Several trends are changing the nature of global trade – digitalisation, growing demand for e-commerce, evolving supply chain and greater availability of supply chain data have created an environment where shipping small consignments more frequently often makes sense, nurturing the LCL market. Digitalisation has been a major disruption in the LCL space as lot of players are offering rates and booking online. The main factor that drive the LCL consolidation business is the order size, which is based on the consumption pattern of the receiving party, which in turn is based on the economic status of that country. China is the biggest origin so far for LCL cargo, and the commodities vary from industrial raw materials and machineries to finished goods, reveals Vivek Kele, Director, TeamGlobal.

India is a growing economy and LCL consolidation has done really well not only in last five years, but the consolidation business in India has shaped up well in the last decade. India is poised to be a commercial hub and logistics is a key ingredient to ensure it happens. The LCL consolidation industry is huge in India but has been overshadowed by the FCL business which has grown tremendously too. In last five years we have seen many MNCs coming to India and all have registered success. Gauging the growth in LCL cargo consolidation industry,