LCL is a commonly-used term in the sea freight
forwarding process. LCL stands for “less than a
container load”. It is used to describe a shipment that does not fill an entire container. They are
also called groupage shipments or part-load shipments. since they are combined with other
LCL is different from another widely used term in logistics – FCL, which stands for “full container load” - a shipment that requires full containers by a shipper.
Benefits of LCL Shipping:
To determine whether you should consider LCL logistics, it’s worthwhile to look into the advantages
of LCL shipping.
- Cost Effective:
In the world of ocean freight forwarding, rates are all about how much space a pallet or crate occupies on a container. And so, LCL shipping seems to be the most cost-effective option.
In LCL shipment you do not need to pay a flat rate for the entire container. Instead, you pay only for the volume you need. Since you are sharing the space with others, your shipment cost gets reduced dramatically.
Cheap and economical, it is also the most preferred shipping mode for small to medium-sized enterprises. It helps businesses to stay afloat in the global market.
For better clarity, you can take the example of a regular Uber versus UberPool – the latter will always be cheaper.
- More Flexibility:
Another added benefit to LCL ocean freight forwarding shipping is easy time management and scheduling. You are not tied into a long shipping plan that focuses on filling a complete container load. You can ship your goods at short notice by using this service. By choosing LCL, you can move your freight on whichever day works best for you.
That’s not all! Even during the peak season and periods of disruption, you are more likely to find cargo space with LCL shippers than with FCL or air freight.
How is LCL Shipping Cost Calculated?
Calculation of basic ocean freight under LCL cargo is based on per CBM (Cubic Meter) rate or per Ton (per 1000 kg’s gross weight) whichever is higher.
CBM – cubic meter is calculated by multiplying the length, width, and height of the packaged goods. For example, if the length, height, and width of the cargo is 3.3 meters, 2.4meters, and 3 meters respectively, the volume of cargo is 3.3 X 2.4 X 3.00 = 23.76 CBM.
If the project freight forwarder quotes a rate of Rs 400/- per CBM, the rate will be 23.76 CBM X Rs 400 per CBM = Rs 9504/-
If the weight of the said package is 6 tons (6000kgs), the freight on LCL is calculated on the basis of the weight. That is, 6 tons X Rs 400 = Rs 2400/-. So, the weight of 1 ton (1000kgs) is treated as 1cbm. In other words, the LCL freight is calculated on the volume of 1 CBM or weight of 1 ton (1000kgs) whichever is higher.
Other Charges Included in LCL Shipment:
Since the LCL shipping process comprises of numerous stages, each stage contributes a fair bit to the overall LCL shipping cost. So when a project freight forwarder makes an LCL quote, it usually covers the cost of:
- Pickup: The cost of picking up your shipment from the warehouse or factory.
- Loading Charges at Origin or Origin CFS charges: LCL shipments need to be loaded onto containers along with other shipments, or consolidated, at a Container Freight Station or CFS. This is sometimes referred to as container stuffing charges.
- Main leg: The cost of the sea journey.
- Destination: De-stuffing and deconsolidation charges at the destination
- Delivery: The cost of transferring your goods to the destination warehouse.
How Can You Track LCL Shipment?
The vessel and container can be tracked online with the help of the Bill of Lading receipt. This document contains all the relevant information for the shipment. It includes the container number, shipper/consignee information, piece counts, weights, and more.
Unfortunately, the tracking ends when the container arrives at the port or when the cargo unloads from the container. However, you need not be worried. Your project freight forwarder can provide you the complete tracking details at each stage.
What Types of Goods Can Be Shipped in LCL Freight?
Just like full container loads (FCL), you can ship almost all types of goods in LCL shipment. However, just make sure you inform your project freight forwarder if your cargo requires special handling or temperature requirements, especially if its perishable and dangerous goods like meat and meat by-products, fish and seafood, dairy products, fruit and vegetables, flowers, pharmaceutical products, and chemicals, etc. Your service provider will ensure your goods are consolidated with goods of the same nature.
How does LCL Shipment Work? Step-By-Step Guide:
Here is a step by step guide on how LCL shipment works
- Shipper contacts the ocean freight forwarder
- Shipper shares complete cargo details with the service provider e.g., nature of the goods, cargo dimensions/weight, origin address, destination address, etc)
- The goods are transferred to the service provider’s warehouse
- The ocean freight forwarder processes the shipment details. Examines various other packages that can be consolidated into LCL shipment
- The goods are grouped with other packages and stuffed into a container.
- It is then loaded on the ship
- The ship reaches the destination.
- The container is unloaded and moved to the warehouse for deconsolidation
- The shipment is ungrouped. Each customer’s cargo is now delivered to its final destination.
New Globe Group Offers LCL Shipment
New Globe Group offers cost-effective LCL shipping solutions to keep your goods moving. At New Globe, the entire ocean freight forwarding process is done in compliance with the set industry norms and guidelines. The ocean freight forwarders not only follow ethical working habits but also focus on providing flawless services. Moreover, the team is efficient and capable of solving any of the client's problems and queries. It is due to this reliability, flexibility, feasibility, and standardization of services, that the firm has been able to earn a reputation in the market.
New Globe is one of the top sea freight importers and exporters in India. Do get in touch with the team if you wish to avail the service.
All rates used in this are for explanatory reasons only and not indicative of the actual rate in any manner.