What is LCL Shipping?

LCL (Less than Container Load) shipping is a core transportation mode in sea freight. When the total volume of your goods is insufficient to fill a complete set of standard containers (such as 20-foot or 40-foot containers), the freight forwarder will collect the goods from different shippers into the same container for joint transportation.

What’s the Operation Process of LCL Cargo?

Compared to FCL, LCL has two extra parts: collection and deconsolidation.

1. Collection: The shipper delivers the goods to the container freight station (CFS) in the exporting country.
2. Consolidation: DFH sorts, packs, and consolidates your goods for the same destination port in the CFS warehouse and then loads them into one container.
3. Shipping: Containers are loaded and transported across countries.
4. De-consolidation: After the container arrives at the destination port, it will be transported to the local CFS warehouse for deconsolidation. The goods from different consignors will be re-sorted and separated there.
5. Delivery: The recipient goes to the warehouse to pick up the goods, or the freight forwarder delivers them to the recipient’s doorstep by truck.

What are the Advantages of LCL Shipping?

• You only need to pay for the actual volume of your goods, without having to bear the cost of space in the entire container.
• You do not need to stockpile lots of goods to fill a full container.
• Suitable for small and medium-sized enterprises and cross-border e-commerce sellers for new product testing or small-scale overseas exploration.

LCL vs FCL (Full Container Load): What’s the Difference?

Generally, LCL is an economical solution that is especially suitable for flexible transportation of smaller quantities of goods, while FCL is more appropriate for goods with large transportation volumes and faster speed.

Why Does LCL Take Longer Than FCL？

LCL shipping usually takes 5 to 10 days longer than FCL. On some complex cross-border routes, the time difference between the two can even be more than two weeks.

The main reasons are the following:

• For LCL, the goods must first be transported to the container freight station in the exporting country.
• The cargo stripping and sorting process of LCL alone will consume an additional 2 to 4 days.
• For LCL, if any noncompliant cargo is selected for strict customs inspection, the site.
• The entire container could be temporarily held for inspection by customs. For LCL, the cargo may be unloaded at these transit ports, transferred to local CFS warehouses, re-sorted, and then re-consolidated with shipments from other countries.

How are LCL Shipping Rates from China Calculated?

LCL freight charges typically consist of three components: base ocean freight, origin/destination local fees, and customs clearance and delivery fees.

China’s LCL shipping calculates both the total volume and total weight of the cargo separately and uses whichever value results in a higher charge as the billing basis. 

What is the Minimum Volume Requirement for China LCL?

The minimum volume for China LCL is 1 cubic meter or 1 freight ton. Even if your cargo volume is less than 1 cubic meter, the freight forwarding company will still charge you according to the standard of 1 cubic meter.

Can I Track My LCL Shipment from China in Real-Time?

Yes. LCL shipping is tracking based on logistics milestones and the overall trajectory of containers. 

LCL shipping tracking involves two different tracking numbers: HBL (House Bill of Lading Number) and MBL (Master Bill of Lading/Container Number). 

You can use HBL for tracking on the official website of the freight forwarder or in the digital logistics system, or you can use MBL to directly visit the shipping company’s official website and track the exact geographical location and voyage path of this ship at sea in real time.

How Does Customs Clearance Work for a Shared LCL Container?

The customs clearance for an LCL container includes four core steps: 

1. Manifest Submission: DFH submits the manifest to customs several days before the cargo ship arrives at the destination port.
2. Transfer to Bonded CFS: After the vessel arrives at the port, the container is transported to the designated bonded CFS warehouse.
3. Independent Customs Entry: Before arrival at the port, each buyer submits their own declaration documents.
4. Cargo Release: The customs system will issue a customs release instruction for your partial shipment (HBL) after your goods pass the document review and the taxes are paid.

What Happens if Another Shipper’s Goods in My Container Cause a Customs Delay?

If a shipment has problems, the entire container will issue a customs hold. Before the customs lifts the detention order, we are not allowed to pull this container back to the CFS warehouse for devanning.

The customs will notify the customs broker to make up the tax payment, provide proof, or even arrange for an Intensive Exam. This process can cause a delay of 5 days to 3 weeks for the entire container of goods.

Do I Need to Buy Cargo Insurance for LCL from China?

Yes, we strongly recommend that you purchase cargo insurance for LCL shipping from China. LCL shipping has a higher potential risk than FCL because it has multiple shipments in one container and requires multiple handlings. Not purchasing insurance may result in a huge financial vulnerability where your goods could be completely lost and irrecoverable in the event of an accident.

DFH Logistics has profound experience in purchasing cargo insurance, and we can obtain a very substantial discount from the insurance company.