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Step by step toward the goal — Sea freight groupage containers facilitate the continuous flow of goods

In turbulent economic times, sea freight groupage containers are becoming increasingly popular. Production bottlenecks, fragile global supply chains, and a container shortage have further increased the demand for small and predictable shipment sizes in sea freight. Michael Kriegel, Department Head DACHSER Chem Logistics, explains the service that enables a reliable flow of goods in sea freight. He also talks about why a good network connection is crucial, especially for goods with high security requirements.

Companies are already analyzing their global supply chains and increasingly shifting their shipments to sea freight groupage (called “less than container load,” or LCL for short). The big advantage of groupage for customers is that they can ship smaller loads without having to pay for a full container. As a result, they can maintain a continuous flow of goods, even in the event of production bottlenecks, and also respond more flexibly to seasonal fluctuations. LCL containers are often prioritized over full containers in the loading process, which provides an additional time advantage and allows for better planning of transportation times. DACHSER markets what it calls “consolidation boxes” - customers pay only for the space they actually occupy in the containers. In addition, the company plans departures weeks in advance rather than only once production volumes are known. This means that containers, which are still in short supply, can be pre-booked in good time and customers retain flexibility when booking. 

Many companies, especially in the automotive, life science, and healthcare industries, have been using groupage shipments by sea for years. But this service is also suitable for the chemical industry, which places particularly high demands on safety and transparency during transport - and thus needs a logistics provider with the appropriate experience. DACHSER is one such provider. It set up a purchasing partnership with the German Chemical Industry Association (Verband der Chemischen Industrie e.V., or VCI) in 2009. This successful alliance for European groupage shipments from Germany was then expanded in 2015 to include air and sea freight. Member companies of the association now benefit from globally standardized core services in the groupage network - transport, warehousing, and IT solutions. All this specialist industry experience has been pooled in the DACHSER Chem Logistics team. 

“In shipments from customers in the chemical industry, which sometimes contain dangerous goods, the decisive factor is always safety. We have to protect life, limb, and the environment,” says Claus Freydag, Managing Director DACHSER Air & Sea Logistics Germany. “DACHSER also boasts global dangerous goods expertise in the groupage container segment and covers all LCL-compatible IMO classes in its own network and in its partner network,” he adds. The company’s central dangerous goods management system and its more than 250 regional safety advisors monitor compliance with special regulations governing the transport of dangerous goods. In addition, many DACHSER employees are trained annually in the particular requirements of chemical logistics.

For sea freight groupage, the sea freight team consolidates various LCLs and loads them into a full container. This optimizes utilization of container capacity, which in turn provides the basis for economical transport costs. Maximum utilization also improves transport sustainability while reducing the risk for individual companies at a time when supply chains are fragile. “Ports around the world have been clogged for months, causing significant delays - and making it rare, if not impossible, for shipping companies to stay on schedule. Instead of sending a full container on its way, which can get held up if loading windows are missed, more and more customers are opting for sea freight groupage containers. This reduces their risk by spreading it over several departures and ships and ensures a more timely transport,” Freydag explains.

Intelligent logistics solutions and a strong network are crucial

Demand for LCL services will continue to grow, even apart from the impact of the pandemic. That’s why DACHSER, as a market leader in the German and European groupage market, has also expanded its maritime LCL network to include 70 weekly direct services to and from Germany. “With a focus on the main global routes, we are systematically expanding our dangerous goods capacity as well. This of course means serving the major markets in both the eastern and western hemispheres, such as China, India, and the US,” Freydag says. In 2021, DACHSER shipped around 19,700 cbm of dangerous goods as LCL with customers in the chemical industry. Dangerous goods thus already represent 15 percent of DACHSER ASL Germany’s LCL business. In addition to the usual port-to-port services, DACHSER also operates various direct import services to the hinterland or other European cities. For example, once a week LCL groupage containers travel directly from port locations such as Hong Kong, Shanghai, and Ningbo to ports such as Hamburg and Bremen - but also with direct loading to Frankfurt, Kaufbeuren, Cologne, Munich, Nuremberg, Stuttgart as well as Copenhagen and Gothenburg. Direct loading minimizes the risk of cargo damage and provides additional safety by eliminating deconsolidation at the transit terminal.

Furthermore, this increases profitability and achieves additional lead time advantages by rectifying bottlenecks in the port. “DACHSER’s global network connects all groupage transports on land and water. We link our own sea freight groupage container services to and from Germany to the comprehensive range of services offered by DACHSER European Logistics, thus enabling end-to-end service throughout Europe,” Freydag says. For storage and unloading, DACHSER is increasingly using its own branch infrastructure in addition to the standard container freight stations (CFS) at the ports. When port capacity is limited, companies thus benefit from additional dispatch quality and shorter transit times.

This concept, in keeping with the idea of “everything from a single source” links the European overland transport network with the global sea freight network - a feature that not every company can offer. “Thanks to the end-to-end solution of our LCL product, which goes beyond just sea transport, we can maintain high quality across the aforementioned carriers and offer transparent traceability of the goods,” Freydag adds.

The past two years have seen risk minimization in the global movement of goods become a crucial factor for success. To take full advantage of LCL shipping, it is crucial that pick-up and onward carriage are also handled in an integrated manner, thus ensuring expertise in the safe transport of dangerous goods along the entire transport route.

Navigating complex waters: How specialised services simplify customs and insurance for businesses

Businesses trading internationally face an increasingly complex web of customs regulations and insurance requirements that can derail operations and drain profits. Changing regulatory requirements, security measures, inadequate insurance coverage, and compliance failures create mounting pressure. Without proper expertise, companies remain vulnerable to delays, penalties, and financial losses.

The right logistics partner with customs and insurance expertise is crucial for international business success, says Detlev Duve, Managing Director of Dachser South Africa. "As businesses face pressure to ensure compliance whilst managing costs, it's essential to partner with a provider that understands the complexities of international trade and can provide customised solutions."

According to Duve, essential factors for navigating customs and insurance successfully include regulatory knowledge, security certifications, insurance guidance, and risk management. "Potential customers should carefully evaluate how their logistics partners address compliance and protection needs. A lack of measures can lead to operational disruptions and financial exposure."

Dachser's approach to customs and insurance covers services including customs data announcements, documentation preparation, and insurance advisory services.

Customs expertise for international trade

International trade requires businesses to deal with customs regulations across multiple countries, each with its own requirements and security protocols. Dachser provides customs clearance services to businesses across all industries.

The company is certified as an Authorised Economic Operator (AEO) in several countries. This status provides customs control benefits worldwide – benefits which Dachser passes on to its customers. "Having AEO certification makes customs controls easier and ensures a consistent international supply chain," says Duve. "Our customs-approved security standards not only simplify customs clearance, they are also a seal of approval for global trading partners."

Effective customs clearance requires more than just form-filling – it demands understanding of international trade regulations and security protocols. Dachser's experience with programmes such as C-TPAT (Customs-Trade Partnership Against Terrorism) positions the company as a trusted partner for businesses requiring reliable customs clearance.

Take the case of businesses exporting to the United States, which must comply with the 10+2 rule under the Importer Security Filing (ISF), where ten defined entries must be transmitted electronically to US Customs at least 24 hours before the ship leaves the port of departure. "We have been working as a registered filer on behalf of clients since 2009," says Duve. "Incorrect, late or missing filings can result in fines between $2,500 and $5,000, making professional handling necessary."

Electronic customs procedures ensure fast and safe handling whilst reducing processing times. Dachser's customs specialists possess deep regulatory knowledge gained through decades of international experience. "We carefully navigate consignments through local and international customs rules and coordinate the entire customs clearance process with local authorities," explains Duve.

As a global business, Dachser has an extensive network and can handle complex customs requirements across borders whilst maintaining the personal touch through local expertise. "Our team of customs specialists understands the details of international trade regulations and uses this knowledge to deliver customised solutions that meet our clients' compliance needs."

Insurance expertise and risk management

When it comes to insurance, shipping to unfamiliar destinations that do not have well-organised infrastructure can add to the risk factor. While damage and loss is rare, it can be very expensive, making insurance costs money well spent, says Duve. Service delivery is at the heart of Dachser's insurance operations. Dachser is registered as an FSP in South Africa and clients benefit from insurance guidance that addresses potential coverage gaps.

"Not understanding insurance implications is a major risk for businesses," says Duve. "Our expert team advises clients on managing risks and filling insurance gaps, often assisting with documentation to ensure smooth clearance and delivery whilst protecting against financial exposure."

For example, when it comes to protecting valuable shipments, it's vital to understand the difference between liability coverage and cargo insurance during transit, explains Duve. "Many businesses confuse freight insurance with cargo insurance, assuming their shipments are covered for full value with freight insurance," says Duve. "This misunderstanding can be a costly error, as freight insurance compensation is calculated on weight basis – meaning the same amount would be paid for one kilogram of platinum as for one kilogram of paper. Cargo insurance, which can be taken to cover the full value of a shipment while it is in transit, protects the customer.”

As a logistics specialist in Africa, DACHSER South Africa is responsible for coordinating almost every aspect of customers shipments. “It makes sense for us to handle cargo insurance too as a value-added service,” says Duve. “We negotiate contracts, pay the premiums and submit claims on behalf of our customers, managing correspondence until a settlement is reached.”

Harnessing global networks

With  4337 locations in 43 countries, Dachser's global network provides customs and insurance expertise across key markets. This global reach helps when dealing with international trade regulations and security requirements. Dachser's decades of international experience ensures timely clearances, appropriate coverage, and avoidance of costly penalties and exposure.

"As an international logistics provider, it's essential to maintain excellent relationships with customs authorities and possess deep knowledge of trade regulations and insurance principles," says Duve. "When challenges arise, our expertise and network ensure we are in the best position to assist and keep clients protected and compliant. We strive to be a logistics partner that truly understands the details of customs compliance and insurance protection, committed to safeguarding our clients' interests," Duve concludes.

(ENDS)

About DACHSER:

Dachser, a family-owned company headquartered in Kempten, Germany, provides transport logistics, warehousing, and customized services in two business fields: Dachser Air & Sea Logistics and Dachser Road Logistics. The latter consists of two business lines: Dachser European Logistics and Dachser Food Logistics. Comprehensive contract logistics services and industry-specific solutions round out the company’s range. A seamless shipping network—both in Europe and overseas—and fully integrated IT systems ensure intelligent logistics solutions worldwide. Thanks to some 37,300 employees at 433 locations all over the globe, Dachser generated consolidated net revenue of approximately EUR 8 billion in 2024. The same year, the logistics provider handled a total of 83.2 million shipments with a tonnage of 44.1 million metric tons. Country organizations represent Dachser in 43 countries. For more information about Dachser, please visit dachser.com

Celebrating four decades: Dachser South Africa's expertise facilitates seamless logistics in Africa

In the dynamic and diverse landscape of African trade, navigating the complexities of logistics requires not just a service provider but a partner committed to fostering business growth. With over 45 years of experience and a deep-rooted understanding of the continent's unique challenges and opportunities, Dachser South Africa stands out.