LCL Shipping Guide

Understanding LCL vs. FCL and Its Benefits

Less than container load shipping — also called LCL shipping — is a cost-effective way for businesses to transport smaller amounts of cargo internationally. Even though the invention of shipping containers reduced the time and cost of shipping, these costs can still impact a company's bottom line, especially when products rarely fill an entire container.

As production demands fluctuate, you need a shipping solution that can accommodate both small and larger shipments. Our LCL shipping guide will discuss how LCL logistics work compared to full container load (FCL) and provide information on how it's a good, flexible option that will meet your needs.

What Does LCL Stand For?

LCL in shipping is sometimes referred to as consolidated or groupage shipping. It's an ocean freight shipping method used for cargo that does not fill an entire standard 20-foot or 40-foot shipping container. Instead of requiring a full container, LCL shipments consolidate your goods with those from other shippers. This saves on shipping costs as you only pay for the space your cargo occupies.

The demand for LCL shipping has surged due to the growth of e-commerce. It offers flexibility, enabling businesses to respond to fluctuating demands without waiting until they have enough cargo to fill a full container.

How Does LCL Differ From FCL?

Unlike LCL shipping, where multiple shippers' goods are consolidated into one container, FCL shipping involves booking an entire container for the exclusive use of one shipper's cargo. Some importers and exporters prefer FCL for larger shipments that need the exclusive use of a container to ensure they have full control over the contents and streamline the shipping process for bulk loads.

While both LCL and FCL are beneficial, LCL has three advantages over FCL when it aligns with your shipping needs:

Cost-effectiveness: LCL enables you to pay only for the space your cargo occupies, making it significantly more affordable for smaller shipments than booking an entire FCL container. It allows you to ship smaller quantities more frequently, eliminating the need to wait until you have enough cargo to fill a full container. When you can ship smaller quantities more often, you can reduce the need for large warehousing spaces, which helps you save on storage and handling costs.
Operational efficiency: LCL shipments can sometimes be faster than FCL if consolidated with other shipments with shorter transit routes or more frequent departures. It also offers more frequent shipping options than FCL, which allows you to meet tighter deadlines and adjust your inventory levels more dynamically.
Adaptability: You can accommodate various cargo types and sizes and adjust your shipment sizes to meet changing demand. This gives great flexibility compared to the fixed capacity of an FCL container.

LCL Shipping Rates

LCL shipping prices are primarily calculated based on the volume of cargo in cubic meters. The more space your goods occupy, the higher the cost. To calculate the cubic meters, you must measure your merchandise's height, length and width.

While weight is also a factor, volume typically holds more significance in determining overall shipping costs due to the capacity of container ships. You'll also need to consider pallet dimensions. LCL shipping quotes also typically include these components:

Pickup costs: The fee for collecting your shipment from the warehouse or factory.
Loading and unloading: Charges for consolidating your cargo with others at a container freight station (CFS) and for deconsolidation at the destination.
Main leg: The cost associated with the ocean freight — this will differ depending on the route.
Delivery: The cost of transporting your goods to their final destination.
Customs bonds: The required customs and border patrol insurance, which varies based on the shipping frequency.
Duties and taxes: The fees owed by the importer or exporter, calculated by customs.
Special handling needs: Instructions for handling cargo like fragile items that may require extra space in the container.
Warehouse handling: Potential additional charges for warehouse handling and paperwork.

The LCL Container Shipping Process

The process involves the following steps:

Booking: Contact a freight forwarder and provide details about your shipment, including dimensions, weight and the number of pieces.
Preparation: Pack and label your goods to ensure they're secure and identifiable during the shared container journey.
Delivery to consolidation point: Transport your goods to the designated CFS before the cargo cutoff date.
Consolidation: The freight forwarder combines your shipment with other LCL cargo heading toward the same destination or shipping route.
Containerization: The consolidated cargo is loaded into a shared container and sealed.
Departure: The container is transported to the port of export and loaded onto a vessel.
Shipping: The container takes journeys over the sea to the destination port.
Offloading and transshipment: The container may be offloaded at an intermediate point and transferred to another vessel for onward transportation.
Arrival at destination port: The container is unloaded and transported to CFS.
Deconsolidation: Individual shipments are separated from the shared container.
Customs clearance: The necessary customs procedures are completed.
Final delivery: Your goods are delivered to the final destination, either directly to your address or to a designated pickup point.

Questions to Ask Potential Freight Forwarding Partners

To choose a reliable freight forwarding partner that can help you with LCL shipping services, ask these questions for clarity:

How will you communicate with me? A dedicated point of contact ensures timely responses to questions and proactive problem-solving, saving you time and improving efficiency.
What tracking technology do you provide? Real-time freight tracking offers shipment visibility to monitor progress, anticipate delays and proactively address potential issues. Detailed reporting enhances supply chain transparency.
Do you offer additional services? Comprehensive services simplify the shipping process and can reduce your workload.
What insurance options are available? Cargo insurance protects your investment against potential loss or damage.
Do you offer packing and preparation services, or is that my responsibility? Knowing beforehand who is responsible for packing and labeling avoids potential delays and ensures compliance with shipping regulations.

Send Your LCL Shipping With CSL Express Line

Choosing to import or export goods through LCL shipping has many benefits, such as cost savings for smaller shipments and flexibility in shipping frequency. Since your cargo is consolidated with other shipments in the same container, receiving clear communication and dedicated support is important.

At CSL Express Line, we work with many customers who deal with globally made or produced goods. We help facilitate the movement and prepare all paperwork from the origin point to any address within the United States.

Get in touch with our team for a consultation or quote for your LCL shipping needs.