Reducing Your Carbon Footprint Through LCL Consolidation

Singapore freight forwarders – Star Concord
10-Jun-2022
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Whether we recognise it or not, everyone is generating carbon emissions in one way or another, and businesses are no different. From the consumption of electricity to keep your office running to transporting your goods overseas, many of your company’s day-to-day operations can have a significant impact on the planet.

However, with global warming becoming a hot-button issue and a growing concern among consumers and businesses alike, minimising one’s carbon emission should be a company’s top priority. And as a freight forwarding company, we are aware of the important role we play in helping our customers move their freight more efficiently.

But if you are not already actively looking to reduce your business’ carbon footprint, you might be wondering if this is a worthy investment on your end? Well, fret not! Let us share why minimising your company’s carbon emissions is the right thing to do and how LCL consolidation can help you achieve that aim.

Why should your business minimise its carbon footprint?

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From extreme weather phenomena like tropical storms to wildfire and severe droughts that have caused disruption to the natural habitats of many animals and affected crop production, there is no denying the impact climate change has on our lives.

All of these can be traced back to the large number of greenhouse gases emitted worldwide, which causes global warming and therefore climate change. And scientists have warned that if steps are not taken to reduce carbon emission, such extreme weather patterns will continue to rise and may get even worse.

How LCL consolidation can help businesses reduce carbon emission

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Most companies typically utilise full container-load (FCL) shipping to transport their products to their customers. This means the entirety of the shipping container’s content belongs to one company.

However, this shipping method is often costly and inefficient. This is because a company may not always utilise the full storage space provided by a shipping container, leading to wasted space in a single FCL shipment. Despite not utilising all the available space, businesses still have to pay the cost of renting a full container.

Furthermore, companies also have to factor in the additional expenses that come with adopting this shipping method, such as freight charges, container demurrage and detention charges, warehouse rental, and container tariffs. This is why FCL shipping is generally recommended for companies that are able to ship a large volume of goods in bulk regularly.

For small and medium enterprises (SMEs) and companies that specialise in goods that are small in volume and size, it is preferable for them to opt for less-than-container-load (LCL) shipping, as it allows businesses to ship their goods without the need to rent a full container, which significantly reduces their costs.

Additionally, with the help of a reliable LCL freight forwarder, businesses can reduce total lead time on regular shipping, allowing them to fulfil and ship orders on demand and top up inventory on short notice without having to rely on mass production, which is financially and environmentally impractical in today’s sustainable climate.

Moreover, companies will always face the possibility of removing their excess stock if they cannot get rid of their existing goods at a reduced price. Imagine the greenhouse gases produced if said business specialises in an industry, like textile, that produces significant carbon emissions. However, through LCL consolidation, such waste of resources is now avoidable.

Looking for an established LCL consolidator in Singapore to assist you with the transport of your goods? As one of the best freight forwarders in Singapore, Star Concord works with experienced crews to provide our clients with a hassle-free experience. Contact us today to find out more about our rates and weekly shipping schedules and destinations.