LCL is a commonly-used term in the sea freight forwarding process. LCL stands for “Less than a Container Load.” It describes a shipment that does not fill an entire container. These shipments, also known as groupage shipments or part-load shipments, are combined with other cargo. LCL differs from FCL (Full Container Load), where the shipment 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 ocean freight forwarding, rates are based on how much space a pallet or crate occupies on a container. LCL shipping is the most cost-effective option as you pay only for the volume you need. Since you are sharing the space with others, your shipment cost is dramatically reduced. It is the most preferred shipping mode for small to medium-sized enterprises, helping businesses stay afloat in the global market.
• More Flexibility: LCL ocean freight forwarding offers easy time management and scheduling. You are not tied to a long shipping plan focused on filling a complete container load. You can ship your goods at short notice using this service. During peak seasons 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?

The basic ocean freight for LCL cargo is calculated based on the 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 are 3.3 meters, 2.4 meters, and 3 meters respectively, the volume of the 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 package is 6 tons (6000 kgs), the freight on LCL is calculated based on the weight. That is, 6 tons X Rs 400 = Rs 2400/-. The weight of 1 ton (1000 kgs) is treated as 1 CBM. In other words, the LCL freight is calculated based on the volume of 1 CBM or weight of 1 ton (1000 kgs), whichever is higher.

Other Charges Included in LCL Shipment

The LCL shipping process comprises numerous stages, each contributing to the overall LCL shipping cost. When a project freight forwarder provides 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 (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 relevant shipment information, including the container number, shipper/consignee information, piece counts, weights, and more.

Unfortunately, tracking ends when the container arrives at the port or when the cargo is unloaded from the container. However, your project freight forwarder can provide complete tracking details at each stage.

What Types of Goods Can Be Shipped in LCL Freight?

Similar to FCL, you can ship almost all types of goods in LCL shipments. However, inform your project freight forwarder if your cargo requires special handling or temperature requirements, especially for perishable and dangerous goods like meat, seafood, dairy products, fruits, vegetables, flowers, pharmaceuticals, and chemicals. Your service provider will ensure your goods are consolidated with goods of the same nature.

How Does LCL Shipment Work? Step-By-Step Guide

1. Shipper contacts the ocean freight forwarder.
2. Shipper shares complete cargo details with the service provider: This includes the nature of the goods, cargo dimensions/weight, origin address, destination address, etc.
3. The goods are transferred to the service provider’s warehouse.
4. The ocean freight forwarder processes the shipment details: Examines other packages that can be consolidated into the LCL shipment.
5. The goods are grouped with other packages and stuffed into a container.
6. The container is loaded on the ship.
7. The ship reaches the destination.
8. The container is unloaded and moved to the warehouse for deconsolidation.
9. The shipment is ungrouped: Each customer’s cargo is 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. The entire ocean freight forwarding process is done in compliance with set industry norms and guidelines. The ocean freight forwarders follow ethical working habits and focus on providing flawless services. The team is efficient and capable of solving any client’s problems and queries. Due to this reliability, flexibility, feasibility, and standardization of services, the firm has earned a reputation in the market.

New Globe is one of the top sea freight importers and exporters in India. Get in touch with the team to avail their services.

Note: All rates used in this example are for explanatory purposes only and are not indicative of the actual rate in any manner.