What is Less than Container Load (LCL)?

Less than container load know as LCL is the best option and make prefect sense, when you don’t have enough merchandise to fill up a full container load. If you are a small and medium-sized business with insufficient goods to fill a full container, Less than container load (LCL) transport is the best solution.

When there are only a few pallets to ship, company have to get competitive shipping rates by using Less than container load.

► What is Less than container load?

► How to distinguish which conditions belong to LCL?

► How freight rates are calculated?

► Why will choose LCL?

What is Less than container load?

LCL is a shipment ‘Less than Container Load’, and it refers to shipments that occupy only a portion of the entire container and is shipped alongside other merchandise  other shippers in the same container. 

How to distinguish which conditions belong to LCL?

There are three forms of LCL:

1. One exporter corresponds to multiple importers 

(Less than container load / Cargo Multiple Consolidation)

2. Multiple exporters correspond to one importer 

(Cargo Multiple Consolidation)

Cargo Multiple Consolidation : It's when cargo  one or multiple shippers is combined into one shipping container. Consolidation means shippers get to pay bulk rates, since they're shipping cargo all at the same time instead of sending a lot of smaller shipments separately. This is a cost-effective solution and inventory flexibility in your business.

3. Multiple exporters correspond to multiple importers 

(Less than container load)

The LCL container will carry the goods of other exporters, usually managed by LCL freight forwarder: MORE+. This means that the goods shipped by the exporters are less than container load. The freight forwarder arrange container loading, measurement, and sort out the goods and loads the goods destined for the same destination into the same container. Two or above exporters, two or above importer, but goods shipped under the same container to different destinations are defined as LCL.

How freight rates are calculated?

Not at all like FCL , which is charged by different size of container.  LCL transport is charged in volume, in cubic meters. For less order shipments, LCL shipments are a cost-effective arrangement since you simply pay for the volume utilized. For a volume between 0-15 M3.

Why will choose LCL?

If you want to reduce your inventory cost, save capital.

LCL will be a good option for you. 

Nowadays customers prefer to ship fast and in small order, FCL might not be the best option fit in your business modal, therefore the demand trend for FCL is gradually decreasing and the demand for LCL has raised.

Major 3 main consolidation hubs where have the most direct service  worldwide: Singapore, Hong Kong and Qianhai.

Traditionally, Both Singapore and HKG has the most global coverage service, however Qianhai rapidly developed their position in 2018 which makes them be one of the important main hub.

Qianhai is a good consolidation hub of LCL goods in Southeast Asia. 

Regular direct service to Qianhai enable flexibility to ship your shipment no matter how small and how many times your shipment, moreover it covers shipment destined to HKG. For the rest of the world, you can consider Singapore hub

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