Multi-country consolidation is a commonly used value-added service for transshipment shipping. It has more benefits to total supply chain cost reduction and increases the efficiency of a supply chain, Here we are going to identify more details regarding Multi country consolidation.
What is the meaning of MCC in shipping?
MCC stands for multi-country consolidation. The meaning of MCC is LCL shipments consolidated as FCL shipments for the same destination country at the place of free trade zone/freeport/warehouses etc. It is a value-added service in a free port/logistics hub/warehouse etc.
What is the process of (MCC) Multi Country Consolidation?
- Importing goods, consolidating, exporting
- Importing different types of goods by different countries, at the consolidation center consolidation of cargo and consolidated cargo exporting to another country.
- Multi country consolidation Operations are permitted inside of the port and outside of the port.
- Permit giving for 100% transshipment cargo
- When doing multi country consolidation importers need to bear several types of costs. Such as the cost of Transshipment cargo+local stevedoring+MCC handling chargers
- Multi-country cargo operation is an extended facility to container freight stations (CFS) operations
- Transshipment cargo transferred under supervision to the bond
- Transshipment cargo deposited to the bond
- Consolidate with other cargo
- Deliver to the port, with a copy of E-CDN OR SN for re-shipment
Advantages of (MCC) Multi Country Consolidation
1. cost reduction in a supply chain-Transport, handling, administrative cost reduce
To the getting advantage of a cost-effective freight rate, you can make an FCL shipment using different types of LCL cargo from different countries.
Most of the time more number of LCL shipments cost is higher than one FCL.So to get a cost-effective solution for freight you can use a multi-country consolidation method for a large number of light shipments which has the same destination country. It will help to supply chain costs reduction.
2. provide more opportunities for sourcing
When using MCC method, there is a wide range of sourcing options available for choosing suppliers from different origin countries to the same destination country.
3. Increase the efficiency of customs clearing process
The FCL shipment customs clearance process is easier than a large number of LCL shipments. It saves time.
The main advantages of the MCC are cost reduction and increase efficiency in shipment transporting.
4. Impact of environmental issues reducing
Using more shipments means is need to allocate more space for the vessel and sometimes it is not used optimum level of space utilization. It is an unnecessary cost. If you use more carriers and more delivery mean ultimately it is impact the environment because of carbon emissions to the environment and other ways of environmental pollution. By using multi country consolidation shipping overall you can reduce the environmental issue by transportation.
5. Value-added services at MCC hub
When doing multi-country consolidation at MCC hub,you can do value-added services such as labeling and packaging according to destination requirements. It reduces the total cost of the supply chain.
Who are the operators of MCC?
- carriers
- freight forwarders
- container terminal operators-transshipment warehouse operators
Top Multi country consolidation service providers
Freight consolidation vs multi country consolidation
Freight consolidation
As the name was suggest freight consolidation, is consolidating much of the freight into one shipment. The transport and logistics industry used the word “freight” or “cargo” to be transported goods. In simple words, we can say freight consolidation is consolidating different types of cargo which need to deliver to the same place. It may be rail, road, sea, inland waterways, or any other modes of transportation within the country or within the city.
Benefits of freight consolidation
There are many benefits of freight consolidation.
cost savings
Transportation cost is a main part of a business. And also it is a more challenging part of finance management. With the help of freight, consolidation can save money. If not consolidate the shipments you need to allocate a vehicle many times and need to make more deliveries for the same destination. It is a very expensive and unnecessary cost. If you use the method of freight consolidation you need to allocate one vehicle and one delivery to more shipments. It is save money.
Increase flexibility and time management
It is more flexible to manage consolidated one shipment than small many shipments. And loading and unloading are also easier and time savings.
Reducing damages during the transportation
Freight consolidation is the use of the minimum number of goods touching points when compared to the general transport method or not using consolidation. For example, more LCL shipments consolidate into one FCL shipment means the risk of damage is less than more LCL shipments.
There are more benefits of freight consolidation as well as there are some challenges in freight consolidation. Such as finding a carrier, need to do proper plan of time management, etc.
Acutaly multi country consolidation is also one of the cargo transporting methods of freight consolidation. Because a multi country consolidation process does the same thing as freight consolidation has done, but it is transported goods from one country to another country. It is the main difference between freight consolidation and multi country consolidation.
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