Your Best Freight Forwarder Agent for LCL Container

LCL Container | The Ultimate FAQ Guide

Introduction

International shipping is one of the most important ways of trading in today’s world.

Most countries will not be able to operate properly without it.

There are a number of ways to ship from one country to another.

And one of the most common ways people or businesses ship is through FCL or LCL Shipping.

Here we are going to learn everything there is to learn about LCL shipping so you know what you are getting into and when you should opt for LCL Container.

Table of Contents

1. What is an LCL container?
2. When Will I Need An LCL Container?
3. What Can I Ship In My LCL Container?
4. How Much Does A Less Than Container Load Cost?
5. What Is The Process Of Shipping Less Than A Container Load?
6. What Are The Advantages Of Shipping Less Than A Container Load?
7. What Are The Limitations Of LCL Less Than Container Shipping?
8. Is Less Container Load More Expensive Than FCL?
9. Which One Should I Choose LCL Container Or FCL Container?
10. How Long Does It Take To Ship LCL Less Than Container Load?
11. What Are The Documents Needed For LCL Less Than Container Load?
12. How Is Less Than Container Load Calculated?
13. How Much Weight Can I Ship In My LCL Load Container?
14. What Freight Forwarder Takes LCL Load?
15. Is LCL Container Load Shipping Done By Sea Or Air?
16. Is Consolidated Shipping Possible With LCL Container Load?
17. How Are Rates Determined For LCL Container?
18. How To Get Insurance For LCL Load?
19. Why Do My LCL Load Shipping Charges Change?
20. Is There A Height Limit For LCL Container Load?
21. Do I Need A Consignee For LCL Less Than Container Load?
22. Can A Bargain For A Discount For Less Container Load?

1.  What is an LCL container?

People who are just starting out with shipping from one country to another, or are looking for ways to ship to another country might not know what LCL container is.

Let me break this down so you understand how this whole thing works.

So when you are shipping you do so using containers.

Now, most of you must know what containers are, if not then they are basically huge metal boxes where all the packages are kept.

The shipping containers are usually always 20-foot or 40-foot.

There are two sizes of containers so different quantities of packages can be shipped in them.

Let’s say you are starting out, you want to send out a small size shipment.

This shipment will be placed in a container that houses many other shipments.

So this is what an LCL container is when your shipment size is less than a container full.

There are other shipments in the container with yours.

2.  When Will I Need An LCL Container?

LCL less than container load must be one of the most used methods of shipping.

People tend to use this most often.

LCL less than container load means this shipping method is used when an individual does not have enough packages to fill up the whole container.

Then their packers are placed inside a container with other people’s packages.

This is most common among smaller business and non-business parties.

Businesses commonly use this method of shipping too when their consignment size is smaller.

LCL load is also popular among e-commerce businesses.

And the main reason behind this is their sales of small packages.

All in all, you have to use LCL shipping containers when the size of your shipment is less than a container load.

3.  What Can I Ship In My LCL Container?

When shipping from one country to another there are some restrictions placed by the shipping companies.

There are many factors that have to be considered while shipping, especially if done so internationally.

One of the common items you see that shipping companies do not want to take in their LCL container load is jewelry.

And the main reason behind this is the handlers.

As there are many shipments in one LCL container each of the shipments needs to be handled and separated by the crew.

It is also advisable to pack properly if you are shipping anything fragile in the LCL less than container load.

4.  How Much Does A Less Than Container Load Cost?

Shipment made by sea freight is usually not as expensive as it is by air.

The main reason behind this is of course the cost is split between many different shipments when it is transported by sea, and the overall cost of shipping is lower.

Shipping charges for LCL container vary from country to country.

The further the country the more you will have to pay for the shipping.

If I have to give you an average it costs about $7 to $11 per kilogram to ship using LCL container.

So if you are shipping a package that weighs 10 kgs you will have to pay between $70 to $110 for the shipment.

The freight weight is calculated based on the distance traveled and the space the shipment takes inside the container (also known as volumetric weight).

Volumetric weight is the weight assigned for space in the container.

The volumetric weight will depend on how much space your package takes in the container.

There are websites that help you understand the calculations.

5.  What Is The Process Of Shipping Less Than A Container Load?

The shipping process for LCL container is not really that different from any other method of shipping.

Most of the time you will be contacting or making deals with the carrier.

Rather you will hire a middleman, they are also called freight forwarders or shipping companies.

These freight forwarders will contact the carrier and negotiate the pricing for you.

Usually, these freight forwarders, like HART Worldwide are in contact with many carriers.

This enables them to get great deals for their clients.

When the match is found the freight forwarder will collect the shipment from the shippers and then deliver it to the carrier.

You have to make the payment for the shipment to the freight forwarder.

They will also include their charges and fees into the total.

After subtracting their portion of the shipment they will give the remaining amount to the carrier.

6.  What Are The Advantages Of Shipping Less Than A Container Load?

There are many advantages of using LCL shipping for the shipper and importer.

First of all you don’t have to worry about filling a container.

What happens with FCL shipping sometimes is that the shipper might take a whole container but there is a lot of room left in the container.

So they are basically paying for empty space in the container.

However, this is not absolutely not something you need to think about when you are using an LCL container.

You only pay for what you use.

Another reason why LCL shipping is attractive for people is that it mainly caters to individuals.

As most of the time, LCL shipping is used by small businesses, businesses with small shipment, or non-business individuals, the carriers and freight forwarders keep that in mind and ship accordingly.

And finally, the best part of less container load is the multiple schedules available for shipping.

If you have a small package you want to send then you can fit it into any available container.

And off you go!

7.  What Are The Limitations Of LCL Less Than Container Shipping?

There are pros and cons to everything.

If you are going to reap the benefits of using an LCL container then you also have to deal with some of the issues of it as well.

The first problem is the amount of time it takes for LCL shipment to reach the receiver.

And the main reason behind the delay is the handling time.

In one container there are many different shipments and packages.

All of these needed to be sorted manually so everything reaches the rightful owner or its proper destination.

Another problem of LCL shipping is damaged goods.

In most cases, LCL containers do not take on fragile items, even then there are certain shipments that might get damaged.

Therefore , if you do choose LCL shipping, make sure the shippers pack it very well.

The carriers are not liable for any damage, so the receiver has to receive the faulty item and then return it to the shipper.

Even when it is not the shipper’s fault they will have to bear the consequences.

And finally, you will be paying more per unit/ per kilogram for LCL shipping.

It is true you will not have to pay the amount of a whole container when it comes to LCL load.

8.  Is Less Container Load More Expensive Than FCL?

The answer to this question is both yes and no.

Many people consider LCL container load to be less expensive than FCL because they think about the total money spent on each of them.

You will be paying less for LCL shipping because you are shipping less quantity of goods.

Also, FCL can be deemed as more expensive if one has to pay for the empty space in the shipping container as well.

However, others believe that less container load is actually more expensive than FCL shipping.

And their idea on this factor is not wrong.

When you think about the amount of money you are paying for say 1 cubic meter space in the FCL container and compare that with the amount of money you are paying for 1 cubic meter in an LCL container, the difference is clear.

You pay more for the same space in an LCL container.

And the reason why a full container filled with the shipment of individual costs less than a container full of shipments from different shippers is the handling cost.

There is a lot more work involved with LCL less than container load.

9.  Which One Should I Choose: LCL Container Or FCL Container?

When you are confused about choosing the right shipping option for yourself, think about the number of goods you have ready for shipment.

You should opt for an FCL only when you do have enough packages to fill the whole container.

Otherwise, it is not worth paying for the whole container when you are not using all of it.

But if your shipment size is not a full container size then you should not choose an FCL container.

You would be paying more for no reason at all.

However, FCL shipping is faster than LCL shipping.

For a 20 ft container you might have to pay around $2000 to $3000 depending on the distance.

If you see the LCL container costs are added up differently.

You will be paying for the amount of space your shipment occupies in the container.

If you have a shipment with almost a container load then you could opt for FCL for faster shipping and less handling damages.

But of you shipment is small then LCL shipping is the only option for you

This video will help you understand the difference

10.  How Long Does It Take To Ship LCL Less Than Container Load?

LCL shipping is not the fastest shipping option, however it is one many people opt for because of their shipping needs.

Even though it takes some time to ship using LCL shipping for international shipping but the amount of money you pay for it and the convenience makes up for it.

Sea cargo on average takes 22 to 60 days to be delivered to the receiver.

It takes more time when the destination is far from the origin and less time if it is closer.

It takes 3-5 more days to reach the receiver in comparison to FCL shipping.

So if a shipment is sent from China to USA then it might take about 27-30 days for the shipment to be delivered to the receiver using LCL shipping.

11.  What Are The Documents Needed For LCL Less Than Container Load?

There are not many documents you need for LCL less than container load.

Most of the time you have to register with a  freight forwarder.

They are going to take your information at the very beginning.

• Commercial Invoice: You will need a commercial invoice, it is a document that specifies who the shipper and the receiver are.
• Certificate of Origin
• Letter of Credit
• Packing List: The freight forwarder is going to take a list of everything you are shipping, the packing list will have all the information about the package itself.
• Bill of Lading: There is an individual bill of lading processed for each of the shipments in the container.

12.  How Is Less Than Container Load Calculated?

The cost of shipping is calculated based on the type of service used, the distance covered to make the delivery, the shipping rate, and the weight of the shipment.

LCL shipping too is calculated the same way.

Before you can ship your container out you have to calculate the weight of the package you are sending.

Then the dimension of the box is calculated, with that the shipping company calculates the volumetric weight.

For LCL shipping the calculation is done based on the volume.

One CBM equates to 1000 kgs, that’s what you have to pay for.

If the off chance the 1 CBM shipment weighs more than 1000 kgs then you would have to pay according to weight.

However, that rarely ever happens.

Once we have both the actual weight and the volumetric weight you have to see which is higher.

Therefore if the volumetric weight is more than the actual weight then your chargeable weight is the volumetric weight, but if the actual weight is higher then you pay for the actual weight.

Use this link for better idea.

13.  How Much Weight Can I Ship In My LCL Load Container?

LCL shipping charges are based on the volume of the shipment rather than the weight of the package you are sending.

Therefore, there really is no maximum amount of weight your shipment needs to be.

The maximum is set of the space your package can take inside the container.

If it exceeds that space then your shipment the shipping company will suggest you to shift to FCL container.

14.  What Freight Forwarder Takes LCL Load?

Freight forwarder’s main job is to connect shippers to the right carriers.

And one of the most common methods of shipping is through LCL containers.

That is why you will see most freight forwarders do take on LCL load.

Even though LCL shipping is very small scale per shipment, which is why their fee per shipment is lower.

However, there are some corporate freight forwarders who only deal with big producers and manufacturers who only ship in full containers.

15.  Is LCL Container Load Shipping Done By Sea Or Air?

LCL shipping is done by sea.

There are three main ways of international shipping, air, FCL, and LCL.

Each of them is good for different people who have different purposes.

Containers are only sent by sea and that is because of the weight of the containers.

These large bodies cannot be shipped by air, airplane will not be able to take the load.

Both FCL and LCL containers are sent by sea using large ships.

These ships are mainly used for containers, which is why they can carry thousands of kilograms at a time.

16.  Is Consolidated Shipping Possible With LCL Container Load?

Yes, it is possible to get consolidated shipping with an LCL container load.

Consolidated shipping is when small shipments are brought together and shipped at the same time.

This is a preferable method of shipping for many people as it reduces their cost of shipping.

That is because the price per kilogram decreases when your package meets a certain threshold.

So, by putting many small shipments together you will benefit from lower costs and lower risk of damage.

17.  How Are Rates Determined For LCL Containers?

Shipping rates are determined by a number of factors.

First of all, they will see how much space your shipment takes in the container.

The more space your shipment takes the more money you will have to pay.

Then they are going to look into the actual weight of your package.

This usually does not matter as much as the volume of the package unless the actual weight is more than the volumetric weight.

Then there is the distance traveled by the ship.

The further the destination is the more you have to pay.

And finally, there is the type of items you have in your package.

If your package has fragile items then you will be paying more for LCL shipping.

18.  How To Get Insurance For LCL Load?

A lot of the time people using LCL containers do not get insurance for the shipment.

In that case insurance is obviously not something to worry about.

But it is always better to have the shipment insured in case of shipping something fragile or expensive.

That way you are not at risk of losing money if something does happen to shipment.

Unless the premium is too high.

If you do want insurance then you have to contact your freight forwarder about it.

HART Worldwide does provide cargo insurance.

19.  Why Do My LCL Load Shipping Charges Change?

Many people who have used LCL containers before are concerned about the changing rates.

They may have sent a shipment for a sum of money in the beginning of the month, but see that the charges have changed at the end.

And the main reason why the charges change is because of the changing variable costs of the carrier.

If the cost of fuel increases then the charges will automatically increase.

Political issues are also deciding factors of the change.

The demand supply will also change the price of shipping.

20.  Is There A Height Limit For LCL Container Load?

No, there is no such height limit when you are shipping in an LCL container load.

Most of the time for LCL shipping the smaller shipments are fit into a 40-foot container.

As long as your boxes fit into the container everything is good to go.

However, you have to keep in mind if your shipment is over 15 CBM yours will be considered a full container load.

So, if you are shipping something that big then you should consider using an FCL 20-foot container.

21.  Do I Need A Consignee For LCL Less Than Container Load?

A consignee is someone who receives the shipment.

And every shipment has a receiver, therefore, yes you do need a consignee for an LCL load.

The details of the consignee will be listed in the commercial invoice.

The consignee can be the receiver themselves, or their freight forwarder working on their behalf.

22.  Can You Bargain For A Discount For Less Container Load?

Negotiation is a big part of most businesses.

You can save a lot of money for yourself and your business if you are able to bargain or negotiate a better price.

When it comes to LCL shipping you can bargain for discounts.

Most of the time the freight forwarder does it for you with the carrier.

Conclusion

There are many components when it comes to shipping internationally.

If you are thinking of using LCL shipping then by now most of your questions and confusions have been answered.

You should have all the information needed for LCL shipping, and therefore can make an educated decision.

HART Worldwide provides the best services when it comes to LCL shipping.

If you want the best service then HART Worldwide is the one to go to, contact them today!