If your company doesn’t have enough cargo to fill a container, don’t worry. LCL (less than container load) shipping is important for your supply chain. This article will interest you because it discusses how small and medium-sized businesses can access global trade through LCL. We provide a comprehensive guide on cost calculation and the importance of packaging. We provide you with all the tools and information you need to succeed. We are here to help you!
In the world of international logistics, the full container load (FCL) model is the most commonly used for large shipments. But many companies, especially small and medium-sized ones, do not move large amounts of money every day. For them, shipping less than a container, called LCL, is the fastest and most economical option.
This guide explains LCL shipping. We will help you understand the process and decide if it is the best option for your company.
What Is LCL Shipping and How Does It Work?
LCL shipping allows multiple shippers to use the same sea container, making it easy to ship small quantities of goods without wasting space or money. This enables companies with low inventory to participate in international trade in a practical and economical way by paying for the space they use.
The LCL shipping process is organized by a freight forwarder and goes through several important stages:
- Freight consolidation: Your goods first arrive at a special warehouse, where they are combined with shipments from other companies to form a single consignment.
- Container loading: Once the container reaches capacity, the carrier gathers all the cargo together, seals the container, and prepares it for transport.
- Sea freight: The container is then shipped to the destination port by vessel.
- Consolidation and delivery: Upon arrival at the destination, the container is transported to a warehouse where your goods are carefully separated and prepared for direct delivery to your company.
When and why should you choose LCL shipping?
LCL shipping is a good choice in many situations:
- Low volumes: If your shipment does not fill an entire container, the LCL option is the best choice for saving money and shipping smartly.
- Cost savings: If you share a container with others, you only pay for the space you use, so you spend less and each shipment becomes more cost-effective.
- Flexibility: LCL shipping allows you to ship whenever you want, even if you don’t have a full load, and adapts to your needs and schedule.
However, LCL shipments can take longer because they have to go through various stages. Also, if you share the container with others, it may be damaged, so it is important to pack well.
How much does LCL shipping cost?
Cost is a major factor when selecting the right logistics solution. The price of LCL shipping depends on factors such as weight, volume, destination and distance. Freight rates are calculated based on either actual weight or volumetric weight, whichever is greater. Long-distance routes or remote destinations typically incur higher costs, as do special services like custom packaging or hazardous materials handling.
Many logistics providers offer tailored packages, including discounts for regular shipments or combined services like transportation and warehousing. Such options can provide significant advantages for businesses looking to optimize their supply chain.
Aerial view of container cargo ship in sea.
Is LCL shipping safe?
Generally, only dry goods and products that do not pose a safety risk are accepted, as they must be loaded and unloaded safely to prevent damage. Since products requiring temperature control or special care are not included, the process is faster and the risk of delays is greatly reduced.
If a single shipment inside a container needs to be inspected by customs, the entire contents are detained, causing delays for everyone. Therefore, shipping companies establish strict rules for LCL shipments to prevent problems. Nevertheless, they usually allow more time in the schedule to deal with possible delays at customs. After the ship arrives, it may take several days for the container to be released from the port, and extra time is required for unloading and preparing the goods at the warehouse in the port of arrival.
Potential Challenges and Best Practices for LCL Shipping
- Longer transit times: Goods must be brought together at the point of departure and separated at the point of arrival, so LCL shipments generally take longer to arrive than FCL shipments.
- Increased Risk of Damage: Because your goods are in the same place as other shipments, there is a slightly higher chance of damage. So, it’s important to make sure that the packaging is good, the labels are clear, and that the pallets are done properly.
- Complicated documents: LCL shipments often require more complicated admin procedures, as carriers must manage the documentation of multiple parties.
