Case Study: The LCL Export Journey of a Set of Precision Injection Molds
I. Project Background and Order Information
Exporter: Dongguan Jingmo Technology Co., Ltd.
Importer: Stuttgart Auto Parts Company, Germany
Cargo Information:
Product Name: Precision Automotive Interior Injection Mold
Quantity: 1 set (including multiple subcomponents, such as the mold body, inserts, electrodes, etc.)
Weight: 4.2 tons
Dimensions: Irregular shape, main body dimensions are 2.5m (L) x 1.8m (W) x 1.5m (H), requiring wooden crating.
Value: US$150,000
Trade Terms: FOB Shenzhen Shekou
Transportation Requirements: The client requested expedited delivery, but was less critical to absolute timeliness than air freight. Therefore, sea freight was chosen for its cost-effectiveness. Since the cargo did not fill a full container, LCL was chosen.
Challenges: The goods were high value, heavy, and irregularly shaped. They were precision equipment with high shockproofing requirements and required rapid customs clearance at the destination port.
II. Step-by-Step Analysis of the Export Process
Step 1: Transaction and Production Preparation
Dongguan Jingmould signed a contract with a German customer and began production after receiving the advance payment. The completion of production was a critical starting point. The goods were pre-packed at the factory: the mold’s precision working surfaces were treated with anti-rust treatment (anti-rust oil and paper), and bubble wrap and pearl cotton were used as internal cushioning.
Step 2: Booking and Customs Clearance Preparation
Finding a Freight Forwarder: Dongguan Jingmould contacted a long-term, first-tier freight forwarder in Shenzhen, providing a booking letter and detailed cargo information.
Freight Forwarder Operations:
Based on the cargo’s size and weight, the freight forwarder inquired about LCL routes and services from Shenzhen Shekou Port to Hamburg, Germany.
Booking was done with the LCL carrier, which would combine its cargo with other shippers’ cargo into a single container (e.g., a 40-foot high cube).
The freight forwarder receives the warehouse entry notice (including the port cut-off date, warehouse address, etc.) confirmed by the LCL company and forwards it to Dongguan Jingmould.
Document Preparation: Dongguan Jingmould simultaneously prepares the customs declaration documents:
Commercial Invoice
Packing List
Sales Contract
Declaration Elements (such as customs code, material, intended use, brand, etc.)
Step 3: Shipment and Customs Declaration
Domestic Transportation: Dongguan Jingmould arranges a heavy-duty truck to transport the crated molds to the designated LCL warehouse at Shekou Port in accordance with the requirements of the warehouse entry notice.
Warehouse Receipt and Signature: Warehouse staff verifies the warehouse entry number, measures the actual dimensions and gross weight of the goods (which serve as the basis for billing), and signs for the goods. A key point here is that the dimensions provided by the factory are theoretical. Dimensions measured at the warehouse are often larger due to irregular packaging, and freight charges may be adjusted accordingly.
Export Customs Declaration:
The freight forwarder prepares the customs declaration based on the information provided by Dongguan Jingmould and submits the declaration to customs via the e-port.
The HS code for molds is typically 8480 (Mold Boxes/Molds for Metal Casting). Since this was a new product for export, customs clearance went smoothly, no inspection was required, and the shipment was released on the same day.
Step 4: Ocean Freight LCL Operation (Core Step)
LCL Packing: After the cut-off date, the LCL company will rationally pack all cargo bound for the Port of Hamburg into a single container based on its nature, weight, and port of destination. Due to its heavy weight, molds are usually placed at the bottom of the container to avoid crushing other lighter cargo.
Shipping Company Bill of Lading vs. Freight Forwarder Bill of Lading:
The shipping company (such as Maersk) will issue a master bill of lading to the LCL company, with the consignee being the LCL company’s agent in Hamburg.
The LCL company will then issue a house bill of lading to Dongguan Jingmou’s freight forwarder, who will then issue its own house bill to Dongguan Jingmou. Dongguan Jingmou will provide this HBL to the German customer for pickup at the destination port.
Sea Freight: The container ship departs from Shekou Port and arrives at the Port of Hamburg, Germany, after a voyage of approximately 28-32 days.
Step 5: Customs Clearance and Goods Collection at the Port of Destination
Arrival Notification: Before the goods arrive at the Port of Hamburg, the LCL agent in Germany will notify the German consignee (the Stuttgart company) of the arrival of the goods and send a delivery notice and freight invoice.
Bill of Lading Exchange and Customs Clearance:
The German customer presents the original HBL (or Telex Release Letter of Guarantee, if a Sea Waybill has been issued) sent by Dongguan Jingmo to the LCL agent to exchange the bill of lading for a delivery bill.
The customer’s German customs broker, with the delivery bill of lading, commercial invoice, packing list, certificate of origin, and other documents, will declare the import and pay customs duties (molds are generally subject to customs duties, the rate of which is determined according to EU customs regulations).
Goods Collection and Unpacking:
After customs clearance, the LCL agent will arrange for the entire container to be towed to its customs-supervised warehouse.
Inside the warehouse, workers opened the container and, based on the house bill of lading information, located the wooden mold crate belonging to the German customer and unloaded it.
The German customer then arranged a vehicle to pick up the goods from the warehouse. After signing for them, the LCL process was complete.
Step 6: Cost Settlement
Port of Departure: Dongguan Jingmou will cover all port of departure costs under FOB terms, including pickup fees, LCL fees, customs clearance fees, documentation fees, THC, and security fees (the freight forwarder will provide a detailed cost breakdown).
Port of Destination: The German customer will cover all port of destination costs, including bill of lading exchange fees, devanning and sorting fees, storage fees, customs duties, customs clearance fees, and trucking fees. Port of destination costs for LCL shipments are typically high and complex, so they must be clearly confirmed with the customer in advance to avoid disputes.
III. Case Risks and Optimization Suggestions
Risk: Improper Packaging
Issue: Molds are precision equipment, and the bumpy sea transportation can easily cause internal loosening, collisions, and rust.
Countermeasures: Use fumigated solid wood crates, secure the mold to the crate floor with channel steel or thick wooden planks as internal supports, and securely connect the mold to the crate floor. Internal rust prevention measures must be in place. Label the packaging with warning signs such as “shockproof,” “moisture-proof,” and “upward.”
Risk Point: High charges at the destination port
Problem: Customers underestimate devanning and storage fees associated with LCL shipments, leading to disputes.
Countermeasures: Freight forwarders should request an estimate of the port charges from the LCL company when booking and clearly communicate this to the shipper, who should confirm this with the consignee in advance. In the quotation, specify that “port charges are the responsibility of the consignee and will be subject to the consignee’s final invoice.”
Risk Point: Delays due to poor communication
Problem: Incorrect document information, incomplete customs declaration materials, and customer delays in exchanging bills of lading can result in additional demurrage and storage fees.
Countermeasures: Ensure that all documents (especially bill of lading information) are confirmed with the customer. Prepare all necessary customs clearance documents in advance and send the original documents to the customer as soon as possible after the ship departs.
Optimization Tip: Insurance
High-value molds must be shipped with all-risk marine insurance, including rust, damage, and breakage insurance. Insurance is the most effective way to mitigate shipping risks, and the cost is typically only a few thousandths of the cargo value.
Optimization Tip: Terminology Selection
For first-time clients or those unfamiliar with importing, consider using the DAP terminology. The exporter arranges international transportation and customs clearance at the destination port (but does not pay customs duties). This allows for better control over the entire logistics process and avoids issues at the destination port, but also increases the exporter’s liability and risk.
IV. Conclusion
This case study demonstrates that the LCL export of industrial molds is a meticulous, interconnected process:
The key lies in: professional packaging + accurate documentation + transparent cost communication + comprehensive insurance.
Key to success: It is crucial to choose an experienced freight forwarder with a strong destination port network. They can effectively coordinate all aspects of the shipment and destination ports, foresee and solve problems, and ensure that this set of valuable molds is delivered safely, on time, and smoothly to the overseas customer.