Less Than Container Load

What Is Less Than Container Load?

Less than container load is a grouping method where products from multiple sellers are packed and placed in a single container. This method mainly ships small shipments from various sellers instead of bulky products. LCL is the better-known abbreviation for less than container load. 

Significance of Less than Container Load in an E-commerce Shipping and Delivery

The less than container load method influences several factors, from shipping costs to shipping schedules. These primary benefits of using less than container load have been elaborate below.

  • Cost pooling: As several sellers are involved, the container cost is pooled between them. A seller is charged based on per square foot. In other words, a seller only pays for the area they use in the container. 
  • Agility: Sellers can send small products and shipments in an LCL. Furthermore, a shared space’s perks give a seller the agility to send products of varying weights. 
  • Consistent shipping schedule: LCL follows a consistent shipping schedule. It allows a seller to leverage that schedule and send products consistently to a particular place without paying for a full container. 

Prerequisites of Less Than Container Load and How It Works

Products or rather cargo that does not exceed 20cbm should be sent using less than container load. The following steps outline the work for an LCL.

  • Packaging and calculation: The seller must pack a product and determine its volume.
  • Selection and disbursal: Once the volume is calculated, the seller must select an LCL that fits their budget. Once the choice is made, a seller can hand over the cargo for shipment.

Use Case With Less Than Container Load

A use case for a less than container load is as follows. 

  • A seller sends three products with a total volume of 6cbm for LCL, which quotes a rate of AUD .50. Therefore, the seller pays AUD 3 and hands it over to the shipping company for delivery.

Read more

Get the latest industry news, best practices, and product updates!

Exclusive benefits to ace your e-commerce game this 2023 with Locad’s desk calendar!

Locad raises $11M in Series A funding
Free Locad 2023 Calendar!