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OceanLCL

Less than Container Load

A shipment too small to fill a container, so it shares space with other shippers’ cargo.

What is Less than Container Load?

Less than container load (LCL) is an ocean freight service in which shipments from several shippers are consolidated into a shared container, usually by an NVOCC or consolidator. Cargo is delivered to a container freight station (CFS) at origin, stuffed with other consignments, shipped under the ocean carrier's master bill of lading, and devanned at a destination CFS, where each consignment is released against its house bill of lading. LCL freight is normally charged per revenue ton, comparing volume with weight (commonly 1 cubic metre against 1,000 kg) and charging the greater, subject to a minimum. Variants include direct consolidations, where the box goes to a single destination CFS, and co-loading, where one consolidator places cargo in another consolidator's container. Because the shipper hands goods over at a CFS rather than loading them on board, ICC guidance favours FCA over FOB for this kind of shipment.

Why it matters for forwarders

LCL involves more handling than FCL, so packaging, marking and accurate dimensions matter: cargo that measures larger at the CFS than declared is re-rated, and non-stackable or fragile pieces may attract surcharges. Door-to-door transit includes CFS cutoffs, consolidation and deconsolidation, so it can be noticeably longer than the port-to-port schedule suggests. Destination charges such as CFS handling, devanning and storage are often large relative to the ocean freight and should be confirmed before quoting delivered prices. For US imports, the ISF is matched to the house bill, and the container stuffing location and consolidator elements, which may be filed up to 24 hours before US arrival, are particularly relevant because stuffing happens at the CFS. One problem consignment, such as a customs exam on another consignee's cargo, can delay release of every shipment in the same container.

LCL FAQ

When should I ship LCL instead of FCL?

LCL suits volumes too small to justify a full container. As volume grows, per-unit LCL rates plus destination CFS charges can exceed the cost of a full container, so compare total landed cost rather than ocean freight alone.

How is LCL freight calculated?

The consolidator compares the shipment's volume in cubic metres with its weight in metric tons and charges on the greater figure, the revenue ton, subject to a minimum. Origin and destination CFS charges are added on top.

What is a CFS in LCL shipping?

A container freight station is a warehouse where LCL cargo is received, consolidated and stuffed into containers at origin, and devanned and released at destination. CFS receiving cut-offs and devanning times drive LCL door-to-door transit times.

What is co-loading in LCL?

Co-loading is when one consolidator places its customers' cargo in a container operated by another consolidator, typically to serve a destination it does not fill with its own boxes. It affects cut-offs, transit time and which party releases the cargo at destination.

Sources

  1. 19 CFR Part 149: Importer Security Filing, U.S. Government Publishing Office (govinfo)
  2. 19 CFR 4.7a: Inward manifest; information required, Legal Information Institute, Cornell Law School
  3. Incoterms® 2020 vs 2010: What's changed?, ICC Academy

Rules and figures change. Check the current text with the issuing body before relying on it.

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