How does LCL shipping work?

How does LCL shipping work?
How does LCL shipping work?

What is LCL shipping?

In ocean shipping, there are two main forms of containerized cargo - Less than Container Load and Full Container Load. As their names suggest, LCL deals with goods that take up less than the entire space of a full container, meaning a container must be shared, whereas FCL simply means owning a full container on its own.

To learn more about these two different types of containers, read our pages on LCL Shipping and FCL Shipping.

LCL Shipping: How It Works

Also known as "LCL", LCL shipping essentially refers to combining various goods in a single container. Since this involves sharing a container, it's a bit more complicated logically and requires more and better coordination to make sure everything runs smoothly and according to plan.

Book LCL

When you decide to ship LCL, you need to provide the freight forwarder with the dimensions and weight of your shipment. Documents and forms such as bills of lading, commercial invoices, cargo packing lists, etc. must also be completed and submitted. Depending on your cargo type and destination port, additional documentation may be required.

Get your item ready

LCL shipments are usually shipped on a fixed schedule, weekly or bi-weekly, depending on the destination port, so timing is critical. The grouping of LCL goods is carried out in one warehouse, called the Consolidated Warehouse of Origin.

Your freight forwarder can arrange for your shipment to be picked up, which is more common practice. Alternatively, you can also ship the goods to the consolidator warehouse yourself. But remember, if you choose the latter, your shipment needs to arrive fully prepared, packed and ready to load. If you prepare the shipment yourself, be sure to read our guide on how to calculate the volume of a LCL shipment using Tetris.

Whichever method you choose, please note that your shipment must have enough time to reach the warehouse. If the warehouse is located/close to the port of departure, the deadline for your cargo to arrive at the consolidation warehouse is usually 7 days before the sailing date. It depends on the location of the warehouse. For inland warehouses, the deadline will be earlier given that it takes more time to get the container to port.

This is to allow sufficient time for all LCL loads in the container to be properly LCL. Please give us our article on how to properly prepare a LCL shipment to guide you.

Transshipment to port

Once the LCL container is packed and ready, it is shipped to the port of departure as specified in the contract/booking. Port deadlines for containers are usually around three days before the sailing date. After the combined cargo arrives at the port, it is transferred to the shipping company and then shipped to the port of destination.

Transport

If you're shipping to a secondary port, your LCL cargo may be unloaded at a transshipment point, where it's either shipped to another container or waits for more cargo to fill the container before continuing on to its final destination.

In layman's terms, this is similar to what happens with your luggage when you're in transit at the airport. It needs to be unloaded from the plane you landed on and transferred to your next flight.

Reach the destination

After the LCL container arrives at the destination port, it is taken over by the destination agent of the freight forwarder. He/she will collect the containers and deliver them to a warehouse called a destination de-packing warehouse. There, the cargo in the container is broken up into individual LCL loads.

Receive your item

At this time, the consignee can go to the warehouse to pick up the goods. Alternatively, you can have an agent handle the shipment to the consignee, in which case your item will be transferred from the destination unpacking warehouse to the final destination warehouse before it is delivered to you.