LCL (Less than Container Load) is groupage sea freight in which shipments too small to fill a container on their own are carried in the same container as other shippers' cargo. The consolidator collects the cargo at a CFS warehouse, loads it into the container and separates it again at the port of destination. Freight is calculated on volume or weight, whichever is greater (W/M).
What does the shipper buy in LCL transport?
In LCL, the shipper buys space in a container rather than a container. The cargo consists of a few pallets or crates and shares the same container with 5–20 shipments belonging to different companies. LCL comes into play when the volume is not enough to rent a whole container (FCL) or when regular but small orders are shipped. The common practice in the industry is this: for a shipment exceeding 13–15 m³, the price of a 20 ft container should always be compared, because above this volume a full container is often cheaper.
What do the consolidator and the CFS warehouse do?
The consolidator is a forwarder or NVOCC that rents a container from the ship operator and sells the space inside to small shippers. It obtains a master bill of lading (master B/L) from the shipping line in its own name and issues a separate house B/L to each shipper; for the difference, see the entry on the difference between master B/L and house B/L. Some consolidators also serve other forwarders; these are called neutral LCL consolidators.
A CFS (Container Freight Station) is a handling warehouse located near the port. At the origin CFS, cargo is received, measured, weighed and stowed in the container. At the destination CFS, the container is opened and each shipment is separated and made ready for its consignee or for customs.
How does an LCL shipment progress step by step?
- Booking: The shipper reserves space by providing the number of packages, dimensions, gross weight, stackability and dangerous goods information.
- CFS delivery: The cargo is brought to the warehouse before the announced cut-off date. The warehouse records dimensions and weight; this measurement is the value that is invoiced.
- Consolidation: Compatible cargo is stowed in the same container, secured and sealed. Stowage planning and cargo compatibility rules are covered separately under LCL consolidation.
- VGM and customs: Under SOLAS rules, since 1 July 2016 the verified gross mass (VGM) of every packed container has had to be declared before it is loaded on the ship; in LCL this declaration is made by the consolidator that packs the container. An export declaration is lodged separately for each shipment.
- Sea voyage and arrival: The container is moved to the destination CFS, deconsolidation is carried out, and the consignee completes import customs clearance and collects the cargo.
Effect on time and cost
LCL freight is calculated on the revenue ton (W/M): 1 m³ is treated as equivalent to 1,000 kg, and the greater value is invoiced. For example, a shipment of 2.4 m³ weighing 900 kg is charged on 2.4 RT. Most tariffs apply a minimum charge of 1 m³. In addition to the freight there are origin and destination CFS charges, a deconsolidation fee and documentation costs; for small shipments these items can make up a significant share of the total cost. Calculation examples are given in the entry on how LCL freight is calculated.
In terms of time, LCL is usually a few days longer than FCL on the same route. The container has to fill up, cargo is handled twice in a warehouse, and a customs problem with one shipment in the container can delay delivery of the others.
Which shipments is LCL suitable for?
- Orders of 1–13 m³ shipped at regular intervals
- Samples, spare parts and market-test shipments
- Importers working with frequent but small batches to reduce inventory costs
- Cargo looking for a solution cheaper than air freight and covering longer distances than road
Common mistakes
- Weak packaging: LCL cargo is handled in at least two warehouses. Pallets without edge protection or stretch wrap increase the risk of damage.
- Declaring wrong dimensions: If the warehouse measurement does not match the quotation, the invoice automatically goes up.
- Not declaring non-stackable cargo: A pallet on which nothing can be placed may be charged for the full height it occupies.
- Skipping the dangerous goods declaration: Products covered by IMDG are not accepted by every consolidator; late notification leaves the cargo stuck in the warehouse.
How does Voltim Global help?
Within sea freight, Voltim Global evaluates FCL and LCL options together. At the quotation stage, it compares which method is more economical based on the shipment's volume, weight and delivery date.