The rise of emerging markets in Africa, along with growth in e-commerce, is driving a preference for less than container load (LCL) shipments, according to Tommy Lui, North Asia managing director of IDS Medical Systems, which sends shipments into Africa.
“Consignees are very conscious about their assets and their inventories; they want to stay lean and mean,” he said. “In emerging markets many retailers cannot afford to buy in the large volumes usually shipped to developed economies,” he said, adding that increasingly even big-box retailers were not able, or willing, to trade in big orders with the supplier on an FCL basis.
“Even if they take a full container, they definitely want to de-consolidate it at the origin or destination port so it can go to the distribution centre for fulfilment,” Lui said.
