LCL – Giải pháp vận chuyển “Gom hàng” tối ưu cho doanh nghiệp LCL – The optimal "Consolidated Cargo" shipping solution for businesses.

Against the backdrop of Vietnam's import and export continuously setting new records and the increasing number of small and medium-sized enterprises (SMEs) entering the international market, the need to transport shipments that do not fill containers has become particularly urgent. Instead of carrying entire empty containers at high costs, many businesses are choosing LCL (Less Than Container Load) – a solution that consolidates goods to share sea freight costs, offers flexible export schedules, and reduces inventory risks.

This article by Expeditors Global will provide a comprehensive analysis of LCL (Less Than Container Load): concept, process, advantages and disadvantages, and cost optimization tips, so you can decide when to use LCL most effectively.

What is LCL? And what are the characteristics of this shipping method?

LCL (Less Than Container Load) is a term in import and export referring to a form of shipping where goods are consolidated or less than the full container load (LCL) when your shipment doesn't fill a container. Multiple shippers are selected to share a single container, sharing the costs of ocean freight, THC fees, domestic transportation, etc., with other shippers or carriers.

LCL shipping is ideal for types of shipments such as:

• Small and medium-sized enterprises export less than 15 cubic meters or less than 8 pallets.

• Sample shipments, market test shipments

• Import and export activities do not have fixed shipping schedules.

For example: You have 3m³ of goods, while a 20-foot container has a capacity of approximately 33m³. If you use FCL (Full Container Load), you pay for the entire container. But with LCL (Less than Container Load), you only pay for the 3m³ you use, resulting in significant cost savings.

Advantages of LCL (Less Than Container Load) shipping  

Cost savings 

This is the primary reason why many small businesses choose LCL. With LCL, you only pay for the exact volume or weight of goods you use in the container, instead of renting the entire container like with FCL (Full Container Load).

This is ideal when you need to ship small or medium quantities of goods, significantly saving on international shipping costs.

Flexibility in shipping 

With LCL (Less Than Container Load), you don't need to stockpile large quantities of goods to fill a container, allowing businesses to proactively ship goods at any time without waiting to accumulate enough stock.

This is particularly suitable for:

• These companies operate on an order-based shipping model.

• Businesses that sell online across borders.

• These units export product samples and conduct product testing in foreign markets.

Suitable for small and regular orders.

Instead of accumulating goods in a warehouse until you have enough to rent a container, you can ship goods continuously, at a higher frequency, minimizing storage time and increasing capital turnover.

Testing in new markets is easy. 

For businesses that are new to exporting or are exploring foreign markets, using LCL (Less Than Container Load) for trial shipments helps:

• Save on initial investment costs.

• Flexibly adjust product designs and styles based on customer feedback.

• Avoid inventory risks overseas.

Extensive and readily available LCL network

Most popular sea routes now offer LCL (Less Than Container Load) services. LCL warehouses (CFS – Container Freight Stations) are usually concentrated at major ports such as Cat Lai, Hai Phong, and Da Nang, making it convenient for weekly international shipments.

Disadvantages of LCL (Less Than Container Load) 

Shipping time may be extended. 

Because goods need to be collected from many different shippers, the container loading process can take extra time. In addition, after arriving at the destination port, unloading and distributing the goods to each recipient also makes the final delivery time longer compared to FCL (Full Container Load).

The risk of damage and loss of goods is higher.

Because your goods are being transported in the same container as many other types of goods, there is a possibility of:

• Compression or collision due to improper arrangement.

• Mold or spoilage can occur if the container holds goods that easily emit odors, liquids, flammable substances, etc.

• Lost or misplaced during cargo splitting at the destination.

This is why LCL (Less Than Container Load) packaging is so important.

The exact schedule cannot be controlled. 

In LCL (Less Than Container Load) shipments, delays may occur if the required cargo volume is insufficient or if the shipping company changes its schedule. Additionally, delivery times at the destination depend on several factors, such as:

• Customs clearance procedures vary for each shipper.

• The ability to consolidate goods at the CFS warehouse.

• Problems during cargo distribution.

Additional costs can be high if not properly controlled.

Although LCL shipping rates per CBM are inexpensive, additional costs can increase the total price, including:

• LCL (Less Than Container Load) handling fee at the warehouse (CFS fee).

• Port handling and storage fees.

• Consolidation fee at the destination.

• Peak season surcharge, security surcharge, document processing fee…

Therefore, a transparent and detailed price quote from the shipping company is necessary before sending goods.

Customs procedures and documentation are more complex.

With LCL (Less Than Container Load), every shipment in a container must be declared and handled according to regulations. If one shipper has problems with customs declaration or paperwork, the entire container may be held, affecting the remaining shippers.

When should you choose LCL shipping instead of FCL shipping? 

How to calculate LCL shipping costs.

LCL (Less Than Container Load) shipping fees are typically calculated based on volume (CBM) or weight, depending on the type of goods. A common formula is as follows:

CBM = (Length x Width x Height) / 1,000,000 (measured in meters and given in m³)

LCL unit price = Unit price per CBM or per ton, whichever is higher:

• Actual volume (CBM)

• Converted weight (1 CBM = 1000 kg, or as specified by the shipping company)

For example:

• You have a package that is 100cm long, 80cm wide, 100cm high, and weighs 300kg.

• Volume: (100 x 80 x 100) / 1,000,000 = 0.8 CBM

• Comparison: 300kg < 1000kg (0.8 CBM), so the shipping cost is calculated per CBM.

• If the unit price is 80 USD/CBM → Shipping cost: 0.8 x 80 = 64 USD

In addition, there are other types of surcharges such as:

• LCL (Container Freight Station) charge

• Documentation fees

• Port handling fees

• Fuel surcharges, exchange rates, peak season…

Points to note when shipping LCL (Less than Container Load). 

Secure packaging 

Since the shipment is consolidated with multiple other shippers, please use pallets, thick cardboard boxes, shrink wrap, and label the shipment "Fragile" if necessary.

Declare accurately

Information regarding the type of goods, quantity, value, etc. must be truthful and complete to avoid customs problems or insurance claim rejection.

Clearly state the sender's and recipient's information.

Clear labeling helps avoid confusion during handling or sorting of goods at the destination port.

Choose a reputable logistics company.

LCL shipments require experience in cargo sorting, document processing, and shipping line liaison, so choosing a professional partner is essential to ensure safety and timely delivery.

In conclusion, LCL (Less than Container Load) is an efficient shipping solution for businesses that need to send small quantities of goods internationally, offering cost savings and greater flexibility.

However, to maximize the benefits of LCL (Less Than Container Load), you need to understand the freight calculation method, be familiar with the process, and choose a reputable shipping partner to ensure your goods arrive safely and on time.