The process of LCL consolidation involves the movement of less than container load cargo from an Inland Container Deport to a nominated ‘hub’ terminal under customs seal, usually in a domestic container of some sort. At the nominated hub terminal, the sealed containers are opened and the cargo re-worked on a destination wise basis without having to be subjected to re-examination by customs. Indian Customs permitted the reworking of LCL boxes in certain nominated ‘hub terminals’ mostly located at port cities in the year 2000.

This has already led to a tremendous increase in the business of LCL consolidation in the country. Export LCL consolidation of different ICDs’ custom cleared cargo, often along with locally cleared LCL cargo makes for must faster clearance of cargo, and reduces the end to end transit times between the originating points and destinations of the cargo being moved.

Reduced transit times of LCL hub movements have provided opportunity to shippers to move their LCL consignments faster, at extremely cost effective LCL sea tariffs. Due to the reworking of such cargo at nominated hub points within India, direct destination sailings to USA, Europe, Africa, Gulf etc., become available via the Mumbai/Chennai transshipment HUBs. This also reduces the sea transits for LCL movements, which otherwise have to face a more expensive transshipment at locations like Singapore or Colombo.