LCL (Less-than-container Load) is a shipping term used to describe container loads which are filled by multiple orders or goods. When shipping a small volume of stock by container ship, it’s more economical to combine your delivery with other orders. This is termed ‘Less-than-container Load’.
LCL is an international ISO (International Organisation for Standardisation) term; the container load contains numerous consignees or importers.
What is a Less-than-container Load?
Less-than-container load shipments group items together to fill a container.
The four most common container sizes are:
8ft shipping container – 8ft (2.43m) length x 7ft (2.20m) width x 7ft 6in (2.27m) height
10ft shipping container – 9ft 10in (2.99 m) length x 8ft (2.44m) width x 8ft 6in (2.59m) height
20ft shipping container – 20ft (6.06m) length x 8ft (2.44m) width x 8ft 6in (2.6m) height
40ft shipping container – 40ft (12.2m) length x 8ft (2.44m) width x 8ft 6in (2.6m) height
LCL Benefits
Good for shipping small loads – early on, a business might want to ship lower volumes of goods initially before ramping up volumes, LCL is a good option to start off when trading
Lower sourcing risk – if you’re sourcing goods from numerous suppliers to test stock, using LCL can prevent ordering a bulk volume of goods as your first test run
Shorter delivery time – because you won’t need to wait until you need sufficient volume to send a whole container of goods, the goods ordered would arrive to your destination faster
Less inventory management – as the volume of goods are lower than that for a full container, inventory management in the warehouse will be minimal
LCL Disadvantages
It’s important to understand the key risks for Less-than-container Load deliveries.
As a groupage combines freight from numerous suppliers, there is a higher risk of contamination, spillage, logistical issues (items getting sent to the wrong buyer) and damage of goods.
Per unit, the costs of LCL are normally at a premium due to the additional logistics and management involved with shipping multiple goods in one container.
