LCL: Definition, Usage, And Cost - Guided Imports

The volume of the shipment is being computed by the amount of space it occupies. A volume of a carton is calculated by multiplying the length, width, and height. Ocean freight is charged by its volume (unless it is more than 1,000 kg per CBM), and this includes the LCL shipments. It is ideal to consider an LCL agreement if the volume of the goods is between 1 to 18 CBM. Otherwise, shipping via air (for less than 1 CBM) or going full container (for greater than 18 CBM) might be a more economical option.

The gross weight is the total weight of the shipment as a whole, including the weight of the packaging and master cartons. It is best to consider shipping under an LCL agreement if the gross weight of the shipment is more than 150kg during peak season and 200kg during the off-peak season.

You might be wondering why peak and the off-peak season should be considered. It is because the shipping rates are dynamic and it easily changes in response to the changes in supply and demand. Since air shipping method is the number one choice for smaller shipments, it is also the method that is more vulnerable to changes in pricing when the demand for shipping goes up, thus, the alternative option to air freight is to use an LCL agreement.

The product category is also being considered when shipping. Some products are not allowed to be shipped via air due to airline restrictions such as compressed gasses, aerosol cans, and dry ice. In this case, ocean freight, specifically LCL, can be a good alternative depending on the volume of the shipment.

The routing is also considered when choosing an LCL agreement. Not all routes that are available for an ocean shipment can do LCL shipments due to a lack of consolidators. The usual reason for this is because there are not too many shipments to consolidate using that route. In cases like this, the next step is to find an alternative route or ports. If the alternative route is more expensive, then other shipping options should be considered.

The last factor is time. Time plays an essential element in any supply chain. As for businesses that are selling goods on e-commerce websites, the timing could be a hit or a miss. Having no stock for a couple of days can profoundly affect the page ranking of a listing. So imagine having no stock for an extended period, the listing can quickly dwindle to the last page, and there is a considerable possibility of a loss of income. That said, the timing of the delivery should be considered when shipping the products.

If you need your product in less than six weeks after the production is done, then you should consult a trusted freight forwarder for your possible options. Faster vessels are available on some routes, which only offer FCL. Because LCL shipments can take roughly four weeks to be delivered, paying for a full container might be a worthwhile option, and ultimately less expensive than air shipments. If time is not an issue, then an LCL agreement will be a better option.

Below is a checklist that you should help when planning to determine if an LCL agreement is right for you. If one or more of the items below don’t meet your requirements, then LCL might not be the best option to consider.