LCL Shipping
What does LCL stand for?
The term LCL stands for "less than container load".
What is the definition of LCL?
LCL cargo shipping involves consolidating smaller quantities of cargo from various shippers into a single container for transport.
LCL freight allows businesses to share the cost of a container, paying only for the space their goods occupy. As a shipping method, it can be particularly advantageous for small to medium-sized enterprises (SMEs) that don’t have enough cargo to fill a whole container.
What is a loose cargo load?
A loose cargo load refers to individual items that are not packed into containers or secured on pallets for transportation.
This type of cargo, which is often confused with less than container load shipping, includes goods that are irregularly shaped, oversized, or simply do not require packaging.
Unlike LCL freight, loose cargo loads are handled individually and typically require specialised handling because of their size and shape.
What are the benefits of LCL shipping?
Choosing between FCL and LCL freight can often be a matter of businesses’ specific requirements, with cost and time constraints being the most relevant.
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Only pay for what you need
LCL shipping allows businesses to pay only for the space their cargo occupies. With this method, companies don’t have to bear the expense of an entire container.
By sharing space with other shipments, businesses can significantly reduce their shipping costs while still transporting goods.
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Cheaper than air freight
Compared to air freight, LCL cargo shipping is more economical.
While air freight offers faster delivery times, it comes at a premium price. LCL sea freight typically costs around 4 times less than air freight for similar shipments.
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Greater flexibility
Less than container load shipping offers greater flexibility in terms of shipment size and frequency. Businesses can send smaller shipments more frequently without having to wait until they have enough goods.
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Suitable for a wide range of goods
LCL shipping is suitable for a wide range of goods, including perishable items, hazardous materials, and general cargo. It allows for the transportation of goods that may require different handling and storage conditions.
For instance, products containing lithium batteries, liquids, and powders (which often face restrictions in air freight) can be shipped via LCL freight.
What are the drawbacks of less than container load shipping?
In certain circumstances, other options, like FCL or air freight, may be more appropriate for shippers.
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Slower than air freight
LCL sea freight is inherently slower than air freight. Shipments can take several weeks, as they must undergo multiple stages, including consolidation at the origin port and deconsolidation at the destination port.
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Damage potential
As LCL shipping involves multiple consignments packed into a single container, there is an increased risk of damage due to mishandling or the improper packing of adjacent shipments.
Each piece of cargo is handled more frequently during loading and unloading, raising the chances of it being damaged compared to full container load (FCL) shipments, where the cargo remains untouched from origin to destination.
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Higher cost per unit
Less than container load shipping often results in a higher cost per unit. It can be less economical on a per-unit basis, particularly as the volume of goods approaches the capacity of a full container.
LCL shipping costs
LCL shipping rates are primarily calculated based on the volume of the shipment, measured in cubic metres (CBM). The total cost of shipping is influenced by the space your cargo occupies within a shared container.
What is included in the cost of an LCL shipping quote?
Pickup
The cost of less than container load shipping begins with the pickup stage, which covers the expense of collecting your goods from their origin, such as a warehouse or factory.
Consolidation
Consolidation involves grouping your shipment with other consignments at a Container Freight Station (CFS). The process, also known as container stuffing, includes handling and packing various shipments into a single container.
Journey
The main leg of the journey is the sea freight itself, where the consolidated container is transported from the origin port to the destination port. This portion covers transportation across international waters.
Destination & delivery
Upon arrival at the destination port, the container undergoes deconsolidation, where individual shipments are separated and processed.
It’s at this stage where handling fees, CFS, customs clearance, and any applicable duties are paid.
What is involved in the less than container load shipping process?
LCL shipping starts with the collection of goods from the shipper's premises, where the freight forwarder picks up the cargo from the designated location and transports it to a consolidation warehouse.
At the consolidation warehouse, shipments are grouped with other consignments heading to the same destination. The consolidated container is then transported to the departure port and loaded onto a vessel for sea transport.
Upon arrival, the container is unloaded at a deconsolidation warehouse, where shipments are separated.
How long does LCL shipping take?
LCL shipping typically takes between 6–10 weeks, depending on the origin, destination, and time of year. Consulting with your freight forwarder for an estimate based on current shipping conditions is the best approach.
Should I use air freight or LCL shipping?
Choosing between air freight and LCL shipping depends on your priorities when it comes to cost and transit time.
Air freight is significantly faster, typically taking 5–10 days, but it is also more expensive, especially for heavier shipments. LCL shipping, while slower (6-10 weeks), is cheaper per cubic metre and more economical for heavier or bulkier items.
What is the maximum CBM for LCL?
The maximum cubic metre (CBM) for LCL shipments varies by carrier, but generally, a single LCL shipment can be up to 30 CBM. However, the typical LCL shipment tends to be much smaller, usually between 1 and 10 CBM.