LCL
LCL (Less than Container Load) refers to ocean freight shipments that do not fill an entire container. Multiple LCL shipments from different shippers are consolidated together by an NVOCC or freight forwarder into one container, then de-consolidated at the destination Container Freight Station (CFS) for final delivery to each consignee.
LCL is the cost-effective choice for smaller shipments (typically under 15 cubic meters or 15 tonnes) where renting a full container would be wasteful. The shipper pays only for the volume or weight used, calculated as the higher of cubic meters (CBM) or tonnes (revenue ton, "W/M" — whichever is greater).
The trade-off: LCL shipments take longer (consolidation + de-consolidation adds 2-7 days) and have higher per-unit handling costs than FCL.
LCL is how smaller shippers reach ocean freight economically — by sharing a container instead of paying for a whole one. The catch is the extra handling: cargo is consolidated at origin and de-consolidated at destination, which adds days and touchpoints. Knowing the cost-versus-speed trade-off is the key to choosing LCL over FCL.
consolidation
ocean leg
de-consolidation
A shipper with 5 CBM of cargo does not need a whole 40ft container (≈58 CBM usable). Via LCL, their 5 CBM shares a container with other shippers' cargo, and they pay on a W/M basis — the greater of 5 CBM or 5 tonnes — instead of the cost of a full container. The trade-off is 2–7 extra days for consolidation and de-consolidation.
When is LCL cheaper than FCL?
For smaller shipments — typically under about 15 CBM. Above that, a full container (FCL) is usually cheaper per unit and faster, because it skips the consolidation and de-consolidation steps.
What is groupage?
Groupage is another name for LCL consolidation — grouping several shippers' cargo into one shared container.