LCL shipment charge

Discussion in 'International Business' started by Justin B1212, Apr 7, 2021.

  1. Justin B1212

    Justin B1212 UKBF Contributor Free Member

    80 1
    The U.K.custom clearance agent appointed by my Indian supplier sent me an invoice for 3.522 cubic meter of LCL shipment , quoting £254 for terminal handling, £85 for documentation, £106 for currency adjustment FCtr, £30 for infrastructure, £3.5 for port security, £14.09 for port congestion. I thought the charge is astronomical? Is it possible for me to change the custom clearance agent at the last minute? Many thanks.
     
    Posted: Apr 7, 2021 By: Justin B1212 Member since: Jul 3, 2020
    #1
  2. Mike Foulds

    Mike Foulds UKBF Regular Free Member

    121 42
    I am guessing you have purchased this cargo on a freight prepaid basis?

    Yes, I would consider those charges high, however, TBH, there is not a huge amount you can do.

    Even if you switch the clearance agent, those charges would still be applicable, and they may even add a "Handover Fee" to transfer the cargo to a new agent.

    Where the UK customs clearance agent in question has "carried" the cargo in their consol container, or more accurately, received the booking from your shipper, they are in control of the UK costs.

    For LCL shipments, I would always recommend purchasing cargo, and shipping, on an FOB basis, as you can then check the costs involved including freight and arrival costs in the UK, prior to the cargo shipping.

    IF you need to purchase on a Freight Prepaid basis, then you should always ask your shipper to advise who the UK agent is, so you can call and check their charges. If you are not happy, you can then request the shipper uses a different service.

    Hope that helps.
     
    Posted: Apr 7, 2021 By: Mike Foulds Member since: Mar 21, 2018
    #2
  3. Justin B1212

    Justin B1212 UKBF Contributor Free Member

    80 1
    Thank you so much for your explanation. The freight is already prepaid. I did ask my shipper to advise who the U.K. agent is. I have been chasing this UK agent ( Cardinal Maritime) for a quotation of the charges for over one month, and I had heard no reply from them. After another call to them this morning, they emailed me the invoice of these very high charges just now asking for immediate payment after the container arrived on the 3rd of April.
     
    Last edited: Apr 7, 2021
    Posted: Apr 7, 2021 By: Justin B1212 Member since: Jul 3, 2020
    #3
  4. Mike Foulds

    Mike Foulds UKBF Regular Free Member

    121 42
    I take it you mean this arrived on the 3rd April? Otherwise you will be facing a VERY large storage bill!

    In future, I would suggest you need to insist that your shipper advises, and allows you to check charges, prior to shipping, however, for this shipment unfortunately there's nothing you can do, and I would suggest you clear, pay, and take delivery of the cargo asap to prevent any chance of additional costs.

    Sorry not to be able to advise a better outcome.
     
    Posted: Apr 7, 2021 By: Mike Foulds Member since: Mar 21, 2018
    #4
  5. Justin B1212

    Justin B1212 UKBF Contributor Free Member

    80 1
    Thank you so much for your advice. The agent has said the container is being unpacked at the moment. What would be a reasonable cost to clear the customs for this 3.52 cubic meter ?
     
    Posted: Apr 7, 2021 By: Justin B1212 Member since: Jul 3, 2020
    #5
  6. Mike Foulds

    Mike Foulds UKBF Regular Free Member

    121 42
    For the customs clearance (Excluding all other costs mentioned above, I would expect that to be under £55, depending on who does it.
     
    Posted: Apr 7, 2021 By: Mike Foulds Member since: Mar 21, 2018
    #6
  7. Justin B1212

    Justin B1212 UKBF Contributor Free Member

    80 1
    How about the Terminal handing charge, document charge, currency adjustment charge etc?
     
    Posted: Apr 7, 2021 By: Justin B1212 Member since: Jul 3, 2020
    #7
  8. Mike Foulds

    Mike Foulds UKBF Regular Free Member

    121 42
    Now you're asking me to give away state secrets! LOL.

    TBH, if this was on a collect basis, I would expect you to pay under £300 for all UK costs EXCLUDING delivery.

    FYI, this isn't Cardinal Maritime's fault, they have been instructed what UK costs to collect by their office in origin. I have dealt with them many times, and know them to be a large and reputable company.

    Just to avoid any misunderstanding, I should also clarify that I work for a forwarder based near Heathrow, and we handle alot of FCL, LCL and air shipments worldwide, alongside warehousing, etc. My answers therefore come from that point of view.
     
    Posted: Apr 7, 2021 By: Mike Foulds Member since: Mar 21, 2018
    #8
  9. Justin B1212

    Justin B1212 UKBF Contributor Free Member

    80 1
    Thank you, Mike. I will be in touch for a quote when I have the next shipment.
     
    Posted: Apr 7, 2021 By: Justin B1212 Member since: Jul 3, 2020
    #9
  10. CHUKTC

    CHUKTC UKBF Regular Free Member

    200 34
    As others have said here and on numerous other postings - there isn't much you can do other than pay as the charges are determined but he shipper. Unfortunately sellers often offer very 'cheap' shipping rates for their goods only to load the costs onto your charges on arrival which you won't know until the goods arrive.
    For the future - my advice for LCL loads is ALWAYS buy FOB or ExW and arrange the shipping yourself from a UK based company that can offer a price delivered to your door including all charges (ex import tax). Then you will know exactly what you are going to pay.
     
    Posted: Apr 14, 2021 By: CHUKTC Member since: Jan 2, 2019
    #10