LCL Stands for Less-than-container load. An LCL shipment is when your goods don’t fill an entire container (FCL) and therefore they will be loaded into a container with other shippers’ goods to make a Full Container Load (FCL). LCL Shipments are sometimes referred to as Groupage cargo since individual shipments are grouped together with cargo from other shippers to make an FCL.
Pricing of Shipments
LCL shipping rates are basically based on 3 factors namely: Volume, Gross Weight and the Shipping route of the goods. LCL shipping rates are mainly determined by the Weight or Measure (CBM) of the shipment, also known as Revenue Ton in some countries. This means that the higher value between the Gross Weight or the CBM of the cargo is used to apply the freight rates.
LCL Freight Calculation –> Length x Width x Height = Cubic Meters (CBM).
The Gross Weight is derived by weighing the total number of Packages to be shipped.1000 KGS is equated to 1CBM .
For example, if your package is 2m long,2m wide and 1m high. The total CBM will be 4CBM.If the Gross Weight is 2000Kgs.The Revenue Ton/Chargeable weight will be 4CBM since it is higher than 2. So if the shipping rate was 40USD per W/M(RT).The cost will be 4*40=160 USD.
When should you ship LCL?
As a rule of thumb, you’ll want to consider FCL shipping if your shipment is above 10 cubic meters in volume. When the volume of your shipment is less than 10CBM, you are likely to enjoy cost savings by LCL in comparison to shipping FCL.
Image: Sea rates
This is because other charges eg Consolidation and Deconsolidation Charges at the Origin and Destination ports respectively are likely to significantly increase the cost of the shipment.
What are the benefits of LCL Shipping?
1.LCL shipping is Less expensive than FCL shipping
2.LCL shipping offers more flexibility in terms of routing and scheduling.
3.LCL allows for smaller loads to be shipped.
4.LCL Shipping is available from most major ports around the world.
What are the documents needed for LCL Shipping in Kenya?
1.Commercial Invoice
2.Packing List
3.House Bill of Lading
4.Certificate of Conformity
5.Certificate of Origin (Where necessary)
What are the drawbacks LCL Shipping?
1.Potential Delays at the Consolidation and Deconsolidation CFSs/Warehouses.
2.High risk of cargo damage due to improper packaging of goods.
3.Complexity in documentation
Goliath Africa Logistics offers reliable LCL shipping solutions from many countries across the globe to the Port of Mombasa. Eg India, UAE, Taiwan, China, Pakistan, South Africa, Turkey, Vietnam etc
Feel free to contact us for any LCL Shipping Enquiries in Kenya and the greater East African Community (EAC)
Email: solutions@goliath-africa.com
Tel no: +254(0)739057747/+254(0)738057935
Whatsapp/Wechat: +254739057747
