LCL shipments means that the carrier will organize the goods according to the nature and destination of the goods, and concentrate the goods to the same destination to a certain number of assembled into a container and then sent to the port of destination.
FCL vs. LCL shipments: which one is suitable for your cargo?
The minimum size of a standard container for ocean freight is 28 cubic meters. If the volume of your consignment is less than 20 cubic meters, it is more cost-effective to use ocean freight LCL;
If the item you want to consign is larger than 20 cubic meters. Suggest using sea freight whole container transportation.
Here’s an article written more about how to choose between FCL and LCL shipments.
Characteristics of LCL shipments service
It is suitable for small volume and light weight goods, and is the preferred mode of transportation for small businesses.
If you don’t want to just read these text interpretations, you can click on the video below to help you understand more quickly about FCL and LCL shipments：
Advantages and disadvantages of LCL shipments
Advantage
- The overall freight cost is more economical than ocean freight full container and air freight;
- Under the premise of fast shipping frequency, inventory can be reduced more effectively;
- In peak season, the shipment schedule is relatively more stable than the whole container.
Disadvantages
- Not applicable when the volume is large and the cargo is heavy, and the overall freight will be higher than the whole container and air transportation.
- Timeliness is relatively poor, certain routes, such as West Africa, Central and South America, etc., the voyage is super long, more delays may occur.
- Frequent operation may lead to breakage of goods, and the transportation risk is relatively larger than that of LCL.
LCL shipments freight
The overall cost of LCL is divided into three segments:
LOCAL CHARGE, OCEAN FREIGHT and CO-LOADER charge.
Interpretation of LCL freight
1. Ocean freight
1) Currency:
Same as the whole container, LCL ocean freight is billed in USD. For example, the number 115 in the freight table represents 115 dollars.
2)Freight:
The ocean freight of LCL has positive and negative points, in which the negative number is expressed as – or (), i.e., negative freight, also known as return freight.
Such as (115) means not that the ocean freight is USD115/CBM, but represents that the LCL booking counterparts refund USD115/CBM freight to us.
Means that even if we give the customer free to do (offer 0), there is a party USD 115 profit. In the example, the cargo is 2CBM, when we quote 0, the profit is 2×115=USD 230.
If we offer USD30/CBM for ocean freight, then the profit for ocean freight is 2×115+2×30=USD 290.
Consolidation Freight Minimum Consumption
Most of the routes start from 1CBM, less than 1CBM is counted as 1CBM. Some routes (such as some islands in the Caribbean Sea of Central and South America) are remote, with fewer goods and high risk of cargo abandonment, the requirements are more demanding, because of fewer goods, then the minimum consumption of 2CBM, that is, less than two cubic meters of goods to be charged at 2CBM.
Maximum volume
In general, if the goods more than 15CBM, do not recommend going LCL, change to go to the whole container 1X20, which is more secure. The cost under some routes is cheaper than LCL.
If you want to know more details about SAVE LCL shipments freight, you can click on this article:
Optimize the skills of LCL transportation route
1, LCL goods generally can not accept the designation of a specific shipping company, the shipping company only accepts the booking of the whole container of goods, not directly accept LCL goods shipping booking, only through the freight forwarder (individual strong shipping company through its logistics company) will be the LCL goods after the whole to the shipping company booking.
2, In the negotiation with the customer, should pay special attention to the relevant transportation terms, so as to avoid the other side of the letter of credit opened in the consignment only to find that can not meet the transportation terms.
As an Amazon FBA freight forwarder company, we are very familiar with Amazon’s relevant regulations. If you need a freight forwarder China to USA , contact us now!
