LCL (Less than Container Load)
LCL, or less than container load, means your cargo shares a container with other shippers and you pay only for the space you use.
Definition
Under LCL the consolidator groups several shippers' cargo into one container. You are billed per CBM or per ton, whichever is greater, rather than paying for the whole box.
LCL suits shipments too small to justify a full container, but it carries higher per-unit handling charges and usually takes longer, because the cargo must be consolidated and deconsolidated at both ends.
Example
Shipping 8 CBM at 85 USD per CBM costs 680 USD, while a 20ft container on the same lane might cost 2,200 USD all in. LCL wins at that volume.
When you will come across it
- Shipping a volume well below the LCL-to-FCL break-even point, often 12 to 20 CBM
- Testing a new lane or a new product with a small first shipment
- When cash flow matters more than unit cost and you cannot fill a container
Frequently asked questions
When does FCL become cheaper than LCL?
Once your cargo volume multiplied by the LCL rate per CBM exceeds the all-in cost of a full container. For many lanes the break-even point sits between 12 and 20 CBM for a 20ft container.
Why is LCL slower than FCL?
Because the cargo must be consolidated at origin and deconsolidated at destination, which adds several days of handling at each end of the move.
Are there hidden costs in LCL?
Yes. Destination charges such as CFS handling and documentation fees are usually higher per unit than under FCL, so compare total landed cost rather than the freight line alone.