If you are an importer or exporter, you might have come across the acronym LCL while looking to ship goods in small quantities. LCL stands for “less than container load”. It is different from another widely used term in international logistics – FCL, which is short for “full container load” and is meant for large shipments.
As you might already know, LCL is recommended as a safe way to ship cargo in moderate volumes while keeping costs low. While this is mostly true, it is important to understand the LCL shipping process in its entirety. This blog serves as a complete guide to LCL shipping. It will touch on the following elements:
If your cargo does not fill an entire 20-foot or 40-foot container, you can ship it in a shared container with other shipments. This is what “less than container load” means. It is also called groupage because it is grouped with other cargo. LCL shipping is, therefore, meant for cargo of low or moderate volume.
For LCL shipments, freight is usually charged on the basis of volume (CBM). Weight becomes a factor only when the cargo weighs more than one ton. Then, freight is charged on the basis of CBM or weight, whichever is higher.
Note: To find out how to calculate freight volume, read our blog here.
Exporters and importers must note that the shipping process covers not just the sea voyage but a longer journey. So, when a freight forwarder makes an LCL quote, it usually covers the cost of:
The general rule is to use LCL to ship low or moderate-volume cargo to keep costs low. But before taking a decision, consider these factors while also examining how LCL compares to air freight and FCL:
Both are suitable for small shipments but which one is better for you? The decision hinges on the size, weight, contents and urgency of your cargo:
While LCL seems to be the natural choice for shipments that don’t fill up a container, it sometimes makes more sense to book FCL when your cargo reaches a certain volume. Consider these factors:
Improper packaging is said to be the single biggest cause of damage to LCL shipments. Here’s what you can do to secure your cargo:
Apart from ships, there are other modes of transportation – rail, road and barge – involved in the shipping process. Trucks are particularly important to this logistics chain. And it is important to choose the right truck transportation for your LCL cargo. There are two options:
FTL pros and cons: Shorter delivery time, less cargo handling, lower risk of cargo loss or damage. But it is the more expensive option. Freight is charged on the basis of distance. Suitable for: Time-sensitive or valuable cargo.
LTL pros and cons: Cheaper, because you pay only for the section of the truck your cargo occupies. Freight is charged on the basis of weight. But because of multiple shipments, there is more than one pick-up and drop-off, hence longer transit time and more cargo handling. More size and weight restrictions compared to FTL. Suitable for: Small businesses sending moderate volumes of goods, cargo with flexible timelines. By most estimates, good for individual shipments weighing up to 6,800 kg (15,000 pounds).
It’s important to know the whereabouts of your cargo while it is in transit. Yet, tracking an LCL shipment can be challenging. For FCL shipments, most carriers provide a tracking facility on their platform, which their customers can use to check their shipment status in real time. However, very few service providers offer the same facility for LCL shipments. And even if they do, the information and updates provided on such a platform might not always be complete. So, before booking your LCL shipment, you might want to check if your chosen service provider provides real time information during the entire delivery process.
Try Cogoport’s Discover Rates tool for multiple instant freight quotes to gain an insight into market prices
Cogoport currently offers door-to-door services for imports into India, door-to-port services for exports out of India and Europe, and port-to-door services for imports in Europe
At Cogoport, we strive to put all your shipping needs on one platform. Whether you are a newly minted exporter/importer exploring LCL shipping or a veteran of the trade, you can register with us here to avail of a range of services, including:
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