LCL Shipping: Explanation, LCL Charges, Advantages, and Challenges

LCL shipping has become a commonly used shipping method for transporting small consignments. With LCL shipping, you can benefit from cost savings by sharing container space with other shippers, gaining access to global markets even with smaller cargo volumes, and enjoy the flexibility of shipping goods on a more frequent basis. However, questions still remain. Which one to choose among LCL, FCL, and air freight shipping? How are LCL charges calculated? What should I do to better use LCL shipping? Read on, and together we will unravel the complexities of LCL.

1. 1. What is LCL?
2. 2. How Long Will the LCL Shipping Take?
3. 3. The Difference Between LCL Shipments and Loose Cargo Loads
4. 4. How Would You Benefit from Shipping LCL?
5. 5. What are the Challenges You May Face When Shipping LCL?
6. 6. How are the LCL Charges in Shipping Calculated?
7. 7. How Many Kinds of Additional LCL Charges Will Possibly Occur?
8. 8. Shipping LCL or Shipping by Air?
9. 9. Shipping LCL or Shipping FCL?
10. 10. When Should You Book LCL Shipments?
11. 11. Four Practical Tips for Best Using LCL Shipping

1. What is LCL?

LCL, a shipping term used in sea freight, stands for Less Than a Container Load. If the cargo load comes with a size or volume that is not enough to fill up an entire 20ft or 40ft container, the cargo load can be referred to as LCL. When your goods do not occupy a container, you can ship LCL.

To be more specific, there are multiple smaller shipments consolidated into a 20ft or 40ft container in LCL shipping. These LCL shipments usually come from different suppliers, but they will be transported together inside the same shipping container.

2. How Long Will the LCL Shipping Take?

The duration of LCL shipping can vary depending on the origin, destination, shipping route, weather conditions, and more. Generally, sea freight shipping takes about three to six weeks. And it is worth noting that shipping LCL may take longer than shipping FCL (Full Container Load) because the process of consolidating and deconsolidating the cargo will be involved in LCL shipping.

3. The Difference Between LCL Shipments and Loose Cargo Loads

Loose cargo loads mean the type of cargo loads that cannot be palletized or consolidated into standardized containers. Loose cargo usually includes machinery, equipment, bulk commodities and more. And loose cargo loads require to be secured and shipped via breakbulk vessels.

In contrast, LCL shipments mean smaller shipments consolidated into one container that share space with other shipments coming from different suppliers.

4. How Would You Benefit from Shipping LCL?

Cost-effectiveness

When shipping LCL, you only have to pay for the space your shipment occupies. It can be a more cost-effective shipping method in most cases.

Lower Chances of Cargo Loss

If you have low-volume shipments to transport, shipping LCL will be a safer option because yours will share space with other shipments in the same container.

Flexibility in Planning LCL Shipping

With LCL, you are able to ship less but more frequently, which offers flexibility in freight transportation. You no longer have to wait until you get a full container load of goods.

Inventory Storage No Longer a Burden

There is no need for warehousing excess inventory any more. You can ship what you got, even if it is a small quantity. So, inventory storage will be less of a headache.

More Convenience, Less Limitation

Businesses of various sizes, especially smaller businesses, are allowed to get access to global trade markets via LCL shipping. They can transport goods without waiting to collect a full container load.

Secure a Spot in an Easier Way

Peak shipping season always leads to limited container capacity. However, choosing LCL shipping can make booking space way easier and faster.

5. What are the Challenges You May Face When Shipping LCL?

More Days in Transits

When using LCL, the need for consolidating and deconsolidating cannot be eliminated. It means that additional time is required before your goods reach the final delivery address.

Increased Risk of Mishandling

LCL shipments have to be packed together inside a container with other shipments. Subsequently, the possibility of improper handling will increase, and thus bring along higher risks of cargo damage.

More Complicated Customs Clearance Procedures

At customs authorities, each shipper's goods should get cleared individually. And if a whole container gets flagged for an inspection by customs, your LCL shipments will be confronted with shipping delays.

6. How are the LCL Charges in Shipping Calculated?

LCL shipping costs are calculated based on the volume of a shipment, which is measured in CBM (cubic meters). In LCL shipping, the amount of space your shipment occupies determines how much you should pay.

And there comes more. LCL shipments may incur other charges during transit. If you are asking for LCL freight quotes, it will include fees incurred from pickup, origin, destination, transportation, and delivery.

For example, the cost of picking up your LCL shipment from a factory will be involved in the total shipping costs. Besides, consolidating fees at the origin port, deconsolidating fees at the destination port, terminal handling charges, other administrative fees charged by the port, the cost of sea freight transportation, and the final delivery fees, will be included when calculating the overall LCL freight charges.

7. How Many Kinds of Additional LCL Charges Will Possibly Occur?

• Customs Fees - Customs related fees are inevitable during importing and exporting. And how it is charged depends on the particular regulations imposed by the country of origin/destination.
• Import Duties and Taxes - Duties and taxes will apply during the process of importing. It can vary depending on the cargo type and customs regulations.
• Terminal Handling Charges - Terminal Handling Charges will apply when a terminal operator handles a shipping container at a port. It will cover services like loading, unloading, and storage.
• Documentation Fees - Some freight forwarders may charge a fee for preparing the required freight documentation, including bills of lading, packing lists, certificates of origin, and more.
• Detention and Demurrage - Detention and Demurrage will be charged when the containers remain held at a port exceeding the allowed free days.

8. Shipping LCL or Shipping by Air?

How should you choose between LCL shipping and air freight shipping? There are a few things you need to take into consideration before you make the best choice.

First, air freight shipping tends to be more expensive. Typically, air freight charges are calculated by the volume weight or the gross weight. And weight often plays a bigger role in the final air freight shipping costs: heavier cargo will cost more. While LCL shipments are charged depending on the volume it occupies in a container. Regulations have stipulated that any LCL shipment will be charged for at least one CBM (the minimum). Shipments even smaller than that will be charged for a minimum of one CBM. So figure out how much your goods weigh before you decide whether LCL or air freight can be an economical option.

Second, are you going to ship time-sensitive goods? Does your schedule allow for longer transit times? It should be made clear that using LCL shipping means accepting the prolonged cargo's journey via sea. Air freight will be more suitable if you value urgency or speed.

Third, the type of your cargo is another factor you need to care about. Sea freight shipping is not ideal for transporting perishable goods. Containerizing and consolidating may cause damage to fragile goods. Be aware of the type and property of your cargo, and then make a safer choice between air freight shipping and LCL shipping.

9. Shipping LCL or Shipping FCL?

In words, choosing LCL or FCL mostly depends on the cargo's dimensions. FCL stands for Full Container Load. If the goods you are about to ship are large enough to fill a full 20ft/40ft container, you can go for FCL. Practically, if the volume of your shipment reaches 10 CBM, it will be worth paying for an entire container.

There are moments when you want better or extra protection for your goods, but air freight does not come across as a cost-effective shipping option. This is where FCL shipping plays a role. No operations like consolidation and deconsolidation will be involved in the FCL shipping process. Your shipment can remain sealed and untouched all along the way until the container arrives at the destination port.

10. When Should You Book LCL Shipments?

When You Have Small or Medium-sized Shipments

If you have a small quantity of goods or the shipment volume is relatively low, it is advised that you choose LCL shipping. LCL makes it possible for you to access international markets in a cost-effective way.

When You Hope to Secure the Last-minute Shipment Space

Peak seasons usually make it hard to get a spot on a shipping vessel. However, the way how LCL shipments share one single container increases the chances of booking space successfully.

When You Want to Fix the Problem of Limited Warehousing Space

Insufficient space to store your goods? No worries. Using the LCL shipping method to transport your goods more frequently instead of stocking up on large quantities of inventory. In doing this, you can avoid high storage fees and inventory management fees as long as you ship your goods on a regular basis.

When Your Cargo is Not Time-sensitive

If you can afford a prolonged sea freight shipping time frame, you are absolutely welcome to ship via LCL. Saving the shipping costs is one reason. Enjoying the flexibility is another. The sailing date of your shipment can be chosen from a range of different days.

11. Four Practical Tips for Best Using LCL Shipping

Optimize the Container Space Utilization

LCL charges are based on the shipment volume. So properly pack your goods and utilize the pallets smartly to avoid any wasted areas. The most efficient use of container space can lead to largely reduced LCL shipping costs.

Pay Close Attention to Packing Materials

When packing your LCL cargo, it is essential to use wood-treated materials that have visible ISPM-15 verified stamps. This requirement applies to pallets, dunnage, wooden boxes, and any kind of block and brace materials. Also, it will be wise to use high-quality packing materials as your shipment may experience strikes or other rough movements during sea freight transportation.

Understand All Dimensions

Most importantly, you should know the ins and outs of your cargo's dimensions. And then, do not forget that container interior dimensions matter as well. Pallets play a big role when stacking your cargo into a container. In the meantime, the pallet itself takes up container space. Finding out how much space you will need and how much you actually use can help you get better LCL rates.

Compare LCL Shipping Quotes from Different Freight Forwarders

You can ask for LCL freight quotes from multiple freight forwarders to get a clear picture of the market rates and find the best LCL rates available. This will help you make an informed decision based on competitive pricing. At Seabay Logistics, we specialize in providing one-stop sea freight services, including LCL shipping, to support the import needs of business owners worldwide. If you are looking for a logistcis partner, look no further. Seabay Logistcis is here to offer a seamless and efficient shipping experience that will go beyond your expectation. Conatct us now, and get instant LCL quotes. Your cargo's journey can start right away.