When it comes to the world of logistics, flexibility and cost-efficiency are mission critical. Less-than-container load (LCL) freight offers a powerful solution for businesses that need to move goods without the volume to fill the entire container. On Time Delivery & Warehouse offers LCL freight services in Cleveland and throughout the Midwest region. 

Leveraging LCL freight is a smart solution for businesses aiming to move products efficiently, reliably and at a fraction of the cost of full container shipping. It’s often highly recommended for many small-to-medium-sized businesses, startup and e-commerce companies, manufacturers and distributors and importers/exporters. 

What Is LCL Freight, Exactly? 

Less-than-Container Load (LCL freight) is a method of ocean shipping that involves multiple customers who opt to share space within a single container. So instead of paying for shipment of the entire container, you’re paying only for the portion of space that your own cargo occupies.

LCL freight is primarily associated with ocean shipping, but can also be applied to other modes of transportation, such as air freight and trucking (though in the latter scenario, it’s more commonly referred to as “less-than-truckload”). 

Shipments get packed and delivered to a warehouse or staging center, where those containers are then consolidated with shipments that are headed to the same stop on their shipping route. Shipments are then separated for final delivery. 

It’s a relatively new concept in the shipping world, but it’s been revolutionary in terms of opening the doors of global commerce to smaller businesses who otherwise wouldn’t be able to swing the cost of shipping full containers. 

Less-than-container freight often works well for businesses that tend to have smaller shipments that don’t typically require the full capacity of a container but still need their goods delivered securely and on time. It enables businesses to strategically expand their global reach by testing new products or new markets for a time before financially committing to a full-container load contract. 

In many sectors, LCL freight is gaining popularity, thanks to the growing practice of on-demand production, influenced by shorter product life cycles, less available warehousing and rapidly-changing expectations in customer demand.

Will LCL Freight Save My Business Time and Money?

LCL can be a big time- and cost-saver for a lot of shippers – in some cases saving 60%+ compared to other types of freight shipping. LCL costs are based on space (cubic meters or CBM) rather than weight, and typically includes pickup, unloading, ocean freight, delivery and paperwork fees. For some customers, LCL can also help reduce detention and demurrage fees, as well as warehousing and inventory costs. 

That said, both the existence and extent of time and cost savings will depend on the route, destination and other requirements of one’s shipments. Also, there is a higher risk that your container will be flagged for customs examinations –  simply because there’s a greater variety of goods inside. It’s not unheard of that LCL freight might actually cost more than FCL (full container load) for some customers.  But that’s why it’s so important to work with a qualified, reputable 3PL (third-party logistics) partner like On Time Delivery & Warehouse – to ensure you’re choosing the option that’s going to make the most sense for your operation.