January 02, 2019

LCL mechanism trial at FTZ achieves good results

The Shanghai Waigaoqiao Logistics Center Co has been trialing the scale operation of the less-than container load (LCL) mechanism and international transfer service at the China (Shanghai) Free Trade Zone, with the new mechanism yielding great results.

Other than the Shanghai Customs-approved pilot companies such as Sinotrans Container Lines Co, the center has facilitated Mitsu O.S.K. Lines Ltd, Nippon Express Group and Kintetsu International to participate in the pilot program.

The FTZ handled the transfer of 3,682 TEUs (twenty-foot equivalent units) in the first eleven months last year, and it’s estimated that it’ll have handled 4,000 TEUs by the end of 2018.

The zone also promoted cooperation over assembled container mechanism with Sino-Euro Train. Using the zone’s bonded warehouses and bonded customs transit function, the center will use the Shanghai Port’s shipping advantage in the Southeast Asia region to realize LCL for not only China but also Southeast Asia as well as other Belt & Road countries’ freight loads. It will then ship the containers to Europe through the Madrid-Yiwu Train and the Chongqing-Xinjiang-Europe International Railway.

The new shipping mode has exerted the zone’s spillover effect on international transit LCL to form a new type of trade corridor between the Asia-Pacific region and Europe.

Also, the center has created a cooperation mechanism with the FTZ Administration and the Shanghai Customs to tackle companies’ needs for different transit routes between China and Europe. It has further helped them to optimize their existing operation and facilitated their clearance processes.