Bulk shipping and customs clearance face several key challenges that can hinder efficiency. One major issue is the requirement for multiple customs entries when shipping several items to the same destination, leading to increased costs and administrative burdens. Additionally, companies often struggle with the complexities of navigating customs documentation and the associated duties and taxes, which can frustrate end customers.
Setting up distribution centres can also be costly, making it difficult for businesses to manage their logistics effectively. Furthermore, compliance with regulations, particularly in regions like the European Union, necessitates a registered Importer of Record (IOR), adding another layer of complexity.
These challenges highlight the need for DHL Express to innovate solutions such as Breakbulk Express and Loose Bulk Express that simplify the bulk shipping process and enhance customs clearance efficiency. This article dives into how Loose Bulk Express is changing the way our customers tackle bulk shipping.
What is Loose Bulk Express (LBX)?
Loose Bulk Express (LBX) is DHL’s shipping solution to facilitate the movement of smaller, non-consolidated shipments efficiently. Unlike traditional shipping methods that require physical consolidation of items into larger units, LBX allows for the transport of individual pieces as loose shipments. This approach simplifies the shipping process, particularly for businesses that send multiple smaller packages to a single destination.
Key Features of LBX
No Physical Consolidation Required:
LBX eliminates the need for shippers to physically consolidate their shipments into larger units. Each piece can be shipped independently, which streamlines the preparation process and reduces handling time.
Shipment as Loose Pieces:
Shipments are processed as loose items, allowing for greater flexibility. This means that businesses can send varying quantities of items without the constraints of minimum shipment requirements, making it ideal for smaller orders or diverse product lines.
Simplified Customs Documentation:
LBX simplifies customs clearance by reducing the complexity of documentation. With fewer physical consolidations, the paperwork is minimized, and shippers can benefit from a more straightforward customs process. This results in faster clearance times and fewer potential delays, enhancing overall shipping efficiency.
Comparison of Breakbulk Express and Loose Bulk Express
For more information on DHL Express’ Breakbulk Express solution, click here.
Key Benefits of LBX
Cost Savings:
LBX offers significant cost advantages for businesses. By eliminating the need for pallets and cartons, companies can reduce their packaging material expenses. Additionally, since LBX allows for consolidated shipments, businesses can benefit from lower customs fees, making it a cost-effective solution for bulk shipping.
Enhanced Customer Experience:
With LBX, end consignees are relieved from the burden of customs duties and taxes, enhancing their overall experience. This feature makes cross-border deliveries appear more like domestic shipments, simplifying the process for customers and improving satisfaction.
Operational Efficiency:
LBX promotes operational efficiency by facilitating faster customs clearance with minimal paperwork. The direct distribution to end consignees after customs clearance means that businesses can streamline their logistics, reducing handling times and improving delivery speed. This efficiency not only saves time but also enhances productivity across the supply chain.
How LBX Works
1. Creation of Individual Baby Shipments:
The process begins with the shipper creating individual baby shipments using DHL's IT integrated applications. Each piece is prepared for shipment as a loose item, eliminating the need for physical consolidation into larger units.
2. Use of a Single Transport Label for All Pieces:
Each baby shipment is labelled with a single transport label that identifies it as part of the overall shipment. This label includes all necessary details, allowing for easy tracking and management throughout the shipping process.
3. Customs Clearance of the Mother Shipment:
Once all baby shipments are ready, a virtual mother shipment is created. This mother shipment consolidates the individual entries for customs clearance. The mother shipment is then cleared through customs, which simplifies the process by allowing for a single customs entry instead of multiple entries for each baby shipment.
Who can Benefit from LBX
E-commerce Businesses:
An online retailer specializing in fashion accessories wants to streamline its B2C shipments to various customers across the globe. By using LBX, the retailer can send multiple individual orders as loose pieces, eliminating the need for expensive packaging like pallets or cartons. This not only reduces shipping costs but also simplifies customs documentation, allowing for faster delivery times and a smoother experience for end customers who avoid customs duties and taxes.
Automotive Parts Distributor:
An automotive parts distributor needs to send various parts to service providers across different regions. By leveraging LBX, they can ship individual parts as loose shipments, streamlining the process and reducing the need for complex inventory management. This approach not only cuts costs related to packaging but also enhances customer satisfaction by ensuring faster delivery without customs hassles.
Getting Started with LBX
 You have a shipping profile of at least one 30kg shipment once a week. |  You can generate consolidated commercial invoices with HS code at line-item level. |
 You can register an Importer of Record (IOR entity) at destination. |  You ship to multiple consignees per destination |
 You can provide and digitally transmit commercial invoice images to DHL through Paperless Trade. |  Your shipping contents are Non-Dangerous Goods and/or lithium batteries Section II (excl. PI965). |
Don’t miss out on the opportunity to optimize your logistics operations. Our team is ready to assist you with any questions and help you get started with trial shipments to ensure a smooth implementation. Take the next step towards efficient shipping with LBX.
