Less than Container Load (LCL) is a shipping term used when the volume of goods is not enough to fill a standard container. Instead of booking an entire container, shippers share the container space with other consignments. This method is cost-effective for smaller shipments as shippers only pay for their cargo‘s space rather than the whole container.
LCL shipping is ideal for businesses or individuals that do not have enough cargo to necessitate a Full Container Load (FCL). It’s particularly beneficial for small to medium-sized enterprises (SMEs) that need to manage shipping costs closely or for those who need to send goods more frequently but in smaller quantities.
How LCL Works
- Consolidation: Your cargo is grouped with other shipments bound for the same destination at a consolidation warehouse.
- Transport: The consolidated goods are then shipped together in a single container.
- Deconsolidation: Upon arrival at the destination, the container is opened, and each consignment is separated out at a deconsolidation warehouse.
- Delivery: Finally, each shipment is dispatched to its final destination.
LCL Shipping Costs
The cost of LCL shipping is determined by several factors, including:
- Volume and Weight: Charges are usually based on the higher of the two, calculated as a rate per cubic meter or per kilogram.
- Destination: Shipping costs vary depending on the distance and the destination’s accessibility.
- Additional Services: Services like pick-up, delivery, and customs clearance may incur extra charges.