LCL Shipping: How and When To Ship LCL

The ocean holds plenty of records. It’s home to the globe’s largest mammal (the blue whale), the oldest living animal (a 10,000-year-ancient glass sponge), and the oldest surviving species (the horseshoe crab, or coelacanth, depending on who you inquire). It’s also responsible for the majority of international trade: About 80% of global cargo ships by sea.

Ocean freight is typically the most affordable alternative for businesses sending large or heavy shipments. But it can be trickier for smaller packages. With interior dimensions just under 20 feet by eight feet by 10 feet and a capacity of 39 cubic meters, a tiny commercial shipping container is still pretty large. The size may not be practical for low-volume shipping.

For tiny businesses or shipments, less than container load (LCL) shipping might be a more suitable alternative. LCL shipping consolidates tiny shipments with other businesses to fill a container, making it more expense-effective. Here’s what LCL shipments are, how they work, and how to inform if they’re correct for your corporation.

What is less than container load (LCL) shipping?

Less than container load (LCL) shipping is an ocean freight shipping way in which a shipper purchases a portion of the space in a standard shipping container. It can be a expense-effective answer for a cargo load that doesn’t fill an entire shipping container. Instead of renting a packed container, shippers purchase shared container space by cubic meters (CBM).

Here’s how LCL shipping works:

1. Container booking. A business contacts a third-event logistics (3PL) provider to book an LCL shipment.

2. Packaging. The business boxes LCL cargo. For a large-volume shipment, it might also load boxes onto pallets.

3. Pickup. The 3PL picks up boxes or pallets from the point of origin and delivers them to a container freight station (CFS), a warehouse owned by the 3PL provider, the shipment carrier, or a third event.

4. Loading. Warehouse staff pack any loose shipment boxes onto pallets and load the pallets into the shipping container. Once the other cargo has been loaded, the CFS throng arranges transportation to the port of origin and loading onto the international carrier.

5. Transportation. The shipping carrier moves the cargo to the goal port.

6. Unloading. goal staff unloads the container from the vessel, and the 3PL arranges delivery to the goal CFS. The CFS throng unloads the container and deconsolidates the shipment, unloading any pallets that contain boxes from multiple shipments.

7. Final delivery. The 3PL ensures delivery of the boxes or pallets to their final goal.

LCL vs. loose cargo load

Generally, an LCL shipment isn’t the same thing as a loose cargo load. Loose cargo refers to a shipment that isn’t palletized. Most carriers require LCL shipments to be palletized before loading into the shipping container, although there are sometimes exceptions.

LCL vs. FCL

Unlike LCL shipments, packed container load (FCL) shipments occupy an entire container. Shippers pay a flat rate per container regardless of whether they fill all available space. With FCL, shipments don’t distribute container space with other cargo: A single container has one shipper and one recipient.

The best alternative for you depends on your total shipment volume, delivery timelines, and privacy and safety needs. LCL rates per CBM are higher, but LCL is typically cheaper for tiny shipments. If your cargo can fill (or nearly fill) a standard container, however, FCL may provide lower shipping costs.

inquire your 3PL to compute the difference. FCL shipment can also propose increased safety and a faster transit period, so it can be worth paying a slightly higher worth to book FCL.

Benefits of LCL shipping

LCL solutions can assist businesses save money on transportation and storage. Here’s an overview of the benefits:

• expense-effective for smaller shipments. When you book LCL, you pay only for the container space you use. This means it’s typically less expensive to send tiny shipments via LCL than FCL.
• More affordable than air shipment. Ocean freight costs less than air freight, in general, and LCL shipment is a particularly excellent alternative for low-volume, high-weight (i.e., dense) shipments. While air cargo rates depend on weight, LCL cargo rates depend primarily on volume.
• Better peak period availability. Ocean freight shipping peaks between August and October, and it can be challenging to safety net FCL containers during peak period. You might ship LCL so you don’t have to wait for an FCL alternative.
• Reduced storage outgoings. LCL shipment lets businesses order smaller volumes, which can reduce storage costs. You don’t require as much space in the goal country.

Drawbacks of LCL shipping

LCL shipment isn’t always cheaper, and it often means more period in transit. Here are four drawbacks:

• Longer transit times. It takes longer to ship ocean freight than air freight, and LCL is the slower of the two sea shipping options. Transporting LCL freight to and from CFS warehouses and consolidating and deconsolidating shipments adds a few days on top of FCL transit times.
• Less control over delivery timelines. LCL shipping ties multiple shippers to the same timeline, which makes it less flexible than FCL. If you’re ready to ship your cargo early, you’ll still require to wait for other shippers. Your 3PL might also delay a shipment if another event needs more period to deliver their cargo, which will push back your delivery date.
• Higher expense per CBM. LCL shipping isn’t always cheaper. It costs more per CBM than FCL shipment. If you can ship enough cargo to fill an entire container (or arrive close), shipping FCL can be a better alternative. inquire your 3PL to compute the difference.
• Greater uncertainty of shipment setback. While FCL containers are sealed on a business’s premises and can remain unopened until delivery, LCL containers are loaded and unloaded at a CFS. If privacy or safety is a concern for your business or you desire to minimize merchandise handling, you might choose to shipFCL instead.

How much does LCL shipping expense?

LCL rates depend on shipment volume, route, period of year, weight, and the expense of transporting goods from the point of origin to the final goal. Here’s an overview of the factors:

• Volume. Carriers fee by CBM for LCL shipment, so shipment volume is the most significant factor in an LCL rate calculation. Minimum shipment volume is typically one CBM.
• Weight. Some carriers also factor in shipment weight, but the result on LCL rates is minimal (especially compared to the impact of weight on air shipment).
• Route. Shipping carriers use a demand model to determine the worth of a particular route at any given period. You can expect to pay more in peak period, which is August through October.
• Warehouse proximity. Your 3PL will organize pickup and final dropoff of LCL cargo. The farther each location is from the CFS warehouse (and the more challenging transport between each point is), the more you can expect to pay.