In last article, we have talked about the air freight.
Now here is my complete featured guide to LCL shipping.
In this all-new guide, you’ll learn all about:
- the definition
- benefits and drawbacks
- required documents
- lcl procedures
- lcl shipping quotes
- useful tips
- Lots more…
So if you want to save time and efforts for your lcl cargo , you will love this guide.
Let’s get started.
What is LCL ?
LCL stands for less than container load.
It describes sea shipping for cargo loads not large enough to fill a full container ( FCL ) .
Specifically, your cargo will be grouped with other cargo. So LCL shipment sometimes is called groupage shipments.
In other words, you share container space with other importers.
Why should I choose LCL ?
The advantages and benefits of LCL .
- Cheap
You only pay for the volume you need, there is no need to book whole container space like FCL.
Since air freight charge as per weight in kilogram, so LCL can be far cheaper than air freight.
- Steady
Unlike FCL and air shipping, LCL costs are nearly fixed. It won’t fluctuate a lot.
LCL can be easier to get the space especially in the peak season when capacity is near-full.
When shouldn’t I ship by LCL ?
The disadvantages and drawbacks of LCL.
Time
Compared with FCL , LCL takes more time for container unstuffing process.
And of course, as a type of sea shipping, definitely it takes longer than air shipping.
Risks
As you can image, when combied with different kinds of products in different packing,
LCL goods can increases the chances of damage during the long jounery.
When to choose LCL shipping ?
As mentioned above advantages and disadvantages of LCL, we can come to conclusion to use LCL shipping when :
- Consignments are small, while a delicated FCL container is not suitable.
- Want to save shipping cost when shipment is large to ship by air.
- Shipment is not urgent. You can wait for more days
- Need to frequently ship small orders to customers in widely dispersed locations
- want to keep inventory levels lean
What goods are not allowed by LCL？
You can ship most types of goods as LCL freight, but the urgent and high value shipment is not recommended.
Besides that, LCL is unacceptable for the sensitive and dangerous cargo.
The list of prohibited or restricted goods potentially includes :
If you really need to ship any such items, you must strictly follow dangerous goods regulations.
The MSDS, Chemical test report, DGM, UN 38.3 etc documentation are required for verification before make the booking.
For how to ship the hazardous materials, further you can check the 7 tips from Freight Comparator.
How does it work by LCL ?
When you plan a LCL shipment, you will need to know the shipping process.
In this chapter, we will introduce 2 illustration.
One is the targeted LCL shipping process flow.
Another is a more detail shipping procedure of universal application.
LCL is a relative easy shipping method. Generally, it includes 10 steps from beginning to the end :
| Step | Description |
|---|---|
| 1.Picking up | Goods will be picked up from supplier and sent to warehouse |
| 2.Consolidation | Different cargo merged together and load into the container |
| 3.Export Customs | Customs clearance in China with the necessary shipping documentation |
| 4.loading | Container will be delivered to terminal and load onboard |
| 5.Shipping | The sea transport on sea ( Port to Port ) |
| 6.Unloading | Container will be discharged from vessel after arrival |
| 7.Devanning | The container is opened to be sorted and the boxes are separated and prepared to individual owners |
| 8.Import Customs | An import declaration is made at the destinationn CFS. |
| 9.Pay tax & duty | Pay the tax & duty as per the Customs invoice |
| 10.Delivery | Aactual delivery of the cargo to the importer from the warehouse to door |
With the lcl proess flow, you now know how lcl works.
But how to book a lcl shipment ? Use our comprehensive shipping procedure.
| Documents | Description | Who Need | Who Provide | Necessity |
|---|---|---|---|---|
| Bill of Lading | The most important document Identifies the shipper, consignee, and the types and quantity of the goods. | Destination Customs authorities and Customs broker | Shipping Line ( MBL ) Forwarder ( HBL ) | Necessary |
| Packing List | Identifies items, quantities, and includes the net and gross weight and dimensions of the packages . | Destination Customs authorities and Customs broker | * Your Chinese Supplier * Yourself if you are a middle man ( Use your own doc to keep shipment blind ) * Us forwarder ( Value added service especially for cargo consolidation ) | Necessary |
| Commercial Invoice | Lists the value of each item as well as the total value of the shipment. | Destination Customs authorities and Customs broker. | Same as Packing List | Necessary |
| Certificate of Origin | used to declare which country the shipment originated in. | Destination Customs authorities and Customs broker. | * Your Chinese Supplier * Or Your forwarder | Optional But recommended to reduce the import tariff |
| Insurance Policy | cover the loss of or damage to the cargo during transit. | You or final consignee | Your forwarder | Optional But recommended if the cargo value is high |
Other documents may be required depending on the cargo itself and destination country.
Including :
- Dangersours Cargo ( MSDS , UN38.3, DGM, Chemical test report )
- Product certicate ( CCC, FDA, CE,etc )
- Invoice authentication ( Egypt )
- Form M ( Nigeria )
- Fumigation certificate for wooden packing when shipping to Australia, US, etc
- … …
How to calculate by LCL shipping costs?
In shipping service, weight and volume are matters.
That’s why you will need to give detail shipment information when send freight requests to your forwarder.
( See the step 1 of shipping proess in chapter 2. )
LCL cost is calculated primarily by volume in cubic meters (CBM).
Weight is also taken into account, but only works very heavy cargo with small volume.
Interpretation
- Volume matters more than weight
- The chargeable unit by lcl shipping is volume ( per CBM )
- For heavy cargo, then the chargable unit is per ton. Normally conversion ratio is 1 CBM = 1000 kg
For instance
For a 5 CBM, 600 KG cargo from Shanghai to Hamburg,
When the quote is USD 50 / CBM, then total LCL shipping cost is 50 x 5 = USD 250.
However, if cargo is 5 CBM, 6000 KG, then LCL shipping cost is 50 x 6 = USD 300.
How much does it cost for LCL ?
Looking for the price in CBM ?
Use our free lcl shipping calculator to get instant estimate CBM shipping rates from China to globale countries.
Just simply select destination country or input the discharge port you need to ship.
For many routes , the minimum order by LCL is 1 CBM.
But for some routes like China-West Africa or China-Caribbean, minimum order can be 2-5 CBM as it takes too longer.
For goods below that, courier or Air can be more cost-effective.
As you can see in the price table, the interval price is given.
The more big volume, the more favorable unit price will be.
For example,
if you have 2 air shipments to Felixstowe, one 2 CBM, another is 5 CBM
For 2 CBM, O/F is USD 65/CBM.
And for 5 CBM, O/F is USD 60/CBM.
Unit price decreased 5 / CBM when volume increased.
And if you combine two shipments to ship together, the total volume is 7 CBM, unit price is cheaper at USD 55 / CBM.
You can save USD 45 for this shipment.
The answer is no.
Compared with FCL and AIR shipping, LCL cost can be the most fixed.
No matter in peak season or slack season, a LCL quote can be valid for a whole year.
The holiday or external factors like pandemic or trade war can just increase the tension of the capacity and space, but have few effect on the LCL price.
Aside from base rate, what additional charges required ?
Pay attention that LCL is also port to port service only, not door to door.
The whole shipping costs are consists of 3 parts :
- Local charges in China
- Ocean Freight port to port
- Destination import fee
The given lcl shiping table price is just for cost of #2.
If you require door to door service, you need also take local charges #1 and import charges #3 into consideration.
In other words, you still need to find a local agent at the destination to take care of the import operation. Pay the costs like import Customs clearance, doc processing, delivery to door, tax, duty etc
Anyway, a completed door to door costs for LCL can be like this :
| Charge Type | Chargeable Item | Mandatory | Optional |
| Origin Charge | AMS / ENS | Required for shipping to North America and Europe | |
| Picking up / Truck Delivery | If required when EXW | ||
| Export Customs Clearance | √ | ||
| Bill of Lading | √ | ||
| Telex Release | √ | ||
| Insurance | Recommended | ||
| CFS | √ | ||
| Certificate of Origin | Recommended | ||
| Handling | √ | ||
| Freight Charge | Sea shipping | √ | |
| Destination Charge | Import Customs declaration | √ | |
| LCL/THC/CFS | √ | ||
| DOC Processing | For some routes | ||
| Delivery order | √ | ||
| BAF & CAF | If happen | ||
| Bond | For goods to US only | ||
| Deliver to door | √ | ||
| Tax & Duty | √ | ||
| Others | Storage | If required or if any delay happen | |
| Labelling | If required | ||
| Palleting | If required | ||
| Amazon reservation | For shipments to Amazon FBA |
- “√” means necessary charge.
- The origin charge in China will be paid by your supplier when Incoterm is FOB.
So the most important part : calculation & quotes have been talked.
Now it is time to introduce the supportive parts.
They are not essential, but recommended to learn for high efficiency.
In particular, the knlowledge includes :
- seaports
- sea shipping abbreviation
- sea shipment tracking
Top 10 loading ports in China
Among the world’s top 10 ports in 2018, 7 of them are located in China.
You don’t have to pay much attention on the geographical location of your potential vendors in China.
But knowing a bit can help figure out the best POL ( Port of Loading ).
Top 10 ports in China
| Ocean Port | Volume 2018 (Million TEU) | Rank – China | Rank – Worldwide |
|---|---|---|---|
| Shanghai | 42.01 | 1 | 1 |
| Ningbo | 26.35 | 2 | 3 |
| Shenzhen | 25.74 | 3 | 4 |
| Guangzhou | 21.91 | 4 | 5 |
| Hong Kong | 19.60 | 5 | 7 |
| Qingdao | 19.31 | 6 | 8 |
| Tianjin | 16.01 | 7 | 9 |
| Kaohsiung | 10.45 | 8 | 14 |
| Xiamen | 10702 | 9 | 15 |
| Dalian | 9707 | 10 | 16 |
Which port do I need to ship ?
To help those importers who are new to international shipping, FreightPaul developed the featured World Seaports Location Finder.
You can search by port name, seaport code, or city and immediately be taken to the seaport on the map.
Clicking on the seaport will display specific information like port code, city, country & region, and other key points.
Looking to identify more ports in a specific area?
Just zoom in on a region or search for a specific city, state, or country to find their local seaports.
Here is a glossary of shipping terminology for LCL shipping.
If you are confused some shipping words, you can further check the shipping abbreviation.
CBM/M³ – Cubic Metres
Height×Width×Length to work out the cubic metre of a shipment
KG – Kilograms
LB – Pounds
CF – Cubic Feet
LF – Linear Feet
R/T – Revenue tonnes
A billing unit used in the international freight industry.
W/M – Weight or Measure
Billing will be based on whichever is greater based on the converstion factor
Refer to our Incoterms Page for a detailed explanation.
AMS – Amercian Maritime Security
Compliance costs associated with USA border security laws and procedures
BAF/BUC – Bunker Adjustment Factor / Bunker Charge
Fuel Surcharge on a shipping vessel. The BAF applies according to the number of TEUs shipped and is charged by the shipping companies to compensate for fluctuations in fuel prices. This surcharge varies from route to route.
EBS-Emergency Bunker Surcharge
The EBS is similar to the BAF in the sense that it covers rise in fuel prices. The EBS can also vary according to the shipping container type and shipping route.
CAF – Currency Adjustment Factor
Charged to cover currency fluctuation.It typically applies when there are significant fluctuations in exchange rates and is charged as a percentage of the ocean freight rate.
CABAF – CAF and BAF charges combined
FAF – Fuel Adjustment Factor
Fuel charges on road units or on airfreight
GRI – General Rate Increase
Used by shipping lines to label general increase in ocean freight rates on particular trade routes
ISPS – International Ship & Port Facility Security
To cover security handling at the origin and destination ports/depots
SCA – Sea Cargo Automation Fee
Applied by Australian Customs to the computer system that coordinates and controls the reporting and delivery of import sea-cargo in Australia
AI-All Inclusive
The total price to move cargo from point of origin to destination (transportation costs only)
BL Fee-Bill of Lading Fee
The shipping line charges this fee for processing the bill of lading on behalf of their client.
CBP-Customs and Border Protection
This the duty and associated processing fee when shipping goods from one country to another.
CYRC/CYC: Container Yard Receiving Charge / Container Yard Charge
It’s a terminal handling charge. This fee is payable to a shipping line for receiving a full container load, storing it, and delivering it. Delivery is to the ship at the port origin or it is to the consignee at the destination port.
DDC-Destination Delivery Charge
This charge is based on container size. It is applied in many tariffs to cargo as an accessorial charge on base ocean freight. It covers crane lifts off the vessel as well as drayage of the container and gate fees at the terminal.
THC-Terminal Handling Charge
Terminal handling charges apply to origin . It’s charged to FCL shipments to cover the container handling cost at the shipping terminal, including the loading and unloading of the container from the truck, as well as the transportation of the container to and from the vessel.
DTHC-Destination Terminal Handling Charge Fee
Charged by the port of arrival or port of discharge to lift the container onto or off the vessel.
EIS-Equipment Imbalance Surcharge
A surcharge imposed by shipping lines, at times, for the movement of large quantities of empty containers. A lack of export activity from the country where they were shipped full typically creates the need to do so. This is a flat rate per container when it is charged.
ERR: Emergency Rate Restoration
A surcharge added to the cost of freight to cover increases in shipping costs.
ERS: Equipment Repositioning Surcharge
This fee is imposed for the movement of empty containers from one location to another when requested by a shipper.
ISF: Importer Security Filing
A US Customs and Border Protection (CBP) regulation requiring importers and vessel carriers to provide data electronically to CBP for in-bound ocean shipments.
GAS: Gulf of Aden Surcharge
Compensates shipping lines for additional costs incurred due to transit through the Gulf of Aden.
OWS/OWC: Overweight Surcharge / Overweight Charge
It is a fee charged by shipping lines when each container exceeds the designated acceptable weight range for its size.
SCS: Suez Canal Surcharge
Compensates shipping companies for additional costs incurred during transit through the Suez Canal
SES: Special Equipment Surcharge
Seldom use it
PSS-Peak Season Surcharge
Carriers implement PSS during the shipping peak season (between July and October) to cover the increase in operational costs.
This can greatly increase your overall international shipping costs as carriers are already charging higher freight rates during this peak period.
The PSS is limited to and applied during the shipping peak season.
PRE-PULL
A pre-pull fee is charged when an empty container picked up from the port early and stored at a yard in order to meet a specific loading schedule the following day. This is usually the case for cargo that needs to be loaded onto a container on very tight loading times or dates.
VGM-Verified Gross Mass
This fee is charged by accredited facilities licensed to weigh shipping containers to comply with SOLAS regulations requiring all containers loaded on shipping vessels to have their gross weight declared.
20FT, 20′, TEU – Standard 20 foot shipping container
40FT, 20′, FEU – Standard 40 foot shipping container
FR – Flat Racks
HC – High Cube container
OT – Open top container
RF/Reefer – Refrigerated Container
B/B, B/Bulk – Break-Bulk
A large shipment, usually too big for a shipping container, that can be loaded directly onto a ship
DG – Dangerous Goods
Goods that could be harmfully to people and the enviroment and may require special handling
FAK – Freight All Kind
Full container load with a combination of freight from different shippers
FCL – Full Container Load
For higher volume shipments at least over 15 cubic metres total
LCL – Less than Container Load
For smaller sea freight shipments that do not require a full container. Minimum shipment size is 1 cubic metre (CBM/M³) to 1 tonne
LSE – Loose Airfreight
Goods travelling by airfreight on its own and not in a consolidation with other freight
LO LO – Lift on Lift off
Term used by carriers when shipping containers are lifed off the vessel (import) or forwarders truck (export) onto the forwarders truck (import) or vessel (export)
GP – General Purpose Container
Otherwise known as a standard container
OOG – Out Of Gauge
When your shipment over hangs the dimensions of a shipping container
RO RO – Roll On Roll Off
When a shipment can either be driven or towed on and off a vessel
SOC – Shipper Owned Container
Shipping container owned by the shipper rather than the shippng line
How to track the LCL shipment ?
The easiest way is to ask the forwarder to do the checking for you and keep duly posted for the detail tracking result.
However, if you want to track the real shipment status by yourself, you should know the following :
- which shipping line is transporting your cargo
- container number or bill number.
You can use our sea track and trace system which collects 25 major shipping lines who we worked with for cargo from China.
Just go the the target shipping line tracking website and input the container no. or B/L no.
1.Get LCL shipment well packed and insurance covered
If you still remember the drawbacks of LCL, the cargo shipping risks of LCL is higher than FCL since it requires unstuffing process.
So the cargo better be palletized to avoid damage or missing during the transhipping and devanning.
And remember to buy insurance for every LCL shipment especially for fragile goods and high value cargo.
2.Check the destination co-loader charge
Despite ocean freight in CBM is cheap for many shipping routes, the destination import fee of co-loader can be expensive.
Many of the co-loader chargeable items are also in CBM. So even exceed $ / CBM.
Again, LCL is port to port service, not door to door.
So to avoid the misunderstanding when you find the amazing destination charges, you can directly ask port to door or door to door service.
If only requires port to port service, you should at least check the destination co-loader fee from your forwarder, make sure it is reasonable.
3.Consolidate the shipments and ship goods together
Remember the interval price of LCL ?
If you have various shipments from different suppliers, don’t ship separately, but consolidate to ship together.
It can save a lot for you.
4.Pay attention to the delays during the transshipping or devanning.
For shipments to basic major ports, normally LCL freight takes 2-5 days longer than FCL container shipping.
But for shipments to minor ports or remote shipping routes or countries, LCL requires 2 weeks to 45 days
The reason is the transshipping or devanning from discharge port to the container freight station.
For example,
FCL transit time from Shanghai to Apapa Nigeria takes about 40-45 days.
But for LCL, it could be 70-80 days.
Why ?
The LCL Coloader must wait for enough cargo in Durban South Africa, then consolidate a whole container shipments to Nigeria.
They won’t suffer loss to transship your 2 CBM cargo with a container, right ?
For another example,
There is no direct service to Liechtenstein since it is a very small country.
You can still use LCL service when transit via Italy or Switherland.
Just it takes about 24 days to Genoa Italy, while 45 days may needed to Liechtenstein.
Bottom line :
LCL takes more time, sometimes it beyond your expectation.
Be prepared for the delay. Leave enough time for delivery.
CONCLUSION
That’s all for my guide to lcl shipping.
It could be the cheapest solution when time not matters.
Now I’d like to hear from you:
Are there any words hit the point ?
Which tip from this guide do you want to try out first?
Are you going to consolidate your shipments?
Or maybe you want to use port to door service request technique to avoid hidden fee.
Either way, let me know by leaving a comment.
Hey Paul,
This is really amazing stuff for me. I somehow get to read it and feeling so well as it is going to help me a lot with my shipping. You are the best!
Thank you Eric. We will keep going.
How much is 1CBM load to Kano Nigeria.
Hi
Thank you for the request.
For 1 CBM cargo to Nigeria, in fact, the more suitable shipping is by air.
Minimum order by LCL sea freight service from China to West Africa is 2 CBM.
Basic discharge in Nigeria is Apapa or Tincan.
For the price, you can visit the LCL price calculator : https://freightpaul.com/lcl-shipping-calculator
For 1-3 CBM, price is USD 195 / CBM
Transit time is 60-70 CBM
Thanks for sharing the information with us to much appreciated.
Glad you like it,Julie
what is the cbm load for Trinidad and Tobago
Hello dear how can I contact with you I need to speak About shipping process from china to Afghanistan Iam waiting for your response… Thanks Samiullahmohibi The owner of MOHIBI company….
Thanks. Our team will rely you soon.