35% Cost Reduction
LCL from China
A DTC brand selling home goods on Amazon FBA and Shopify discovered they were overpaying 4x for ocean freight. Here's how LCL consolidation cut their $380K annual freight budget by over $42K.
The Challenge
A direct-to-consumer brand specializing in home goods was selling on Amazon FBA and Shopify with inventory sourced from Shenzhen, China. They were using air freight for 100% of their shipments because they assumed ocean freight required full 20ft/40ft containers. At $8–12 per kilogram, air freight was consuming 22% of their cost of goods sold.
Their freight spend had grown to $380K annually, threatening margins. They needed a way to ship 8–10 CBM per month on a predictable schedule without tying up capital in full containers or sacrificing the inventory velocity that Amazon's algorithm demanded.
The Solution
Suaid Global structured a bi-weekly LCL consolidation program from Shenzhen CFS (Consolidation Freight Station) to Los Angeles. The strategy involved three shifts:
1) Strategic Use of LCL: Move regular inventory (70% of monthly volume) via ocean LCL at $1.20–1.80 per CBM, with 28–35 day transit time. 2) Selective Air Freight: Reserve air freight only for new product launches and seasonal restocks (30% of volume), reducing air dependency from 100% to 30%. 3) Advance Planning: Implement a 45-day rolling forecast cycle so LCL shipments align with demand patterns.
Services Used
The Results
The brand achieved 35% reduction in total shipping costs within 90 days. Monthly freight expenses dropped from $31,667 to $20,583. Shipping as a percentage of COGS fell from 22% to 14%, immediately improving unit economics. Transit times of 28–35 days were predictable and aligned with their 45-day planning cycle, eliminating rush freight premiums.
Over 12 months, the program delivered $42,000 in savings, zero customs holds, and on-time delivery. The brand reinvested savings into marketing and product development, increasing market share without raising prices.
Shipping from China? You Might Be Overpaying.
Let us analyze your freight spend. LCL consolidation could save you 30–40% if you're currently using air freight for regular inventory.
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