China LCL shipping
Freightkim would be your best freight forwarding partner if you are planning to move your goods by sea from cities in China, like Xiamen,Shanghai, Ningbo,Qingdao,Guangzhou, shenzhen etc. We create tailor-made international LCL shipping service to meet your time and price.
You should have known the LCL shipping container transport from China.
In last article, we have talked about the FCL freight.
Now here is my complete featured guide to LCL shipping.
In this all-new guide, you’ll learn all about:
• the definition
• benefits and drawbacks
• required documents
• lcl procedures
• lcl shipping quotes
• useful tips
• Lots more…
So if you want to save time and efforts for your lcl cargo , you will love this guide.
Let’s get started.
LCL Shipping Fundamentals
The Definition , Benifits & Drawbacks, What & What not.
LCL Shipping Process
The end-to-end procedure for a Ilcl shipment
LCL Shipping Documents
The required documents for lcl freight
LCL Shipping Costs
The CBM cost calculation and how much does it cost for LCL
Bonus & Care
Seaports, Abbreviation, Tracking
Expert Tips collection
The useful tips and bottom line
Chapter 1
LCL Shipping Fundamentals
When forwarder ask the loading port and discharge port to quote,
Novice always answer like : ” Just give me the best price, no matter what the port is “
In fact, a veteran will give a accurate POL and POD.
They know it matters and can effect the shipping price a lot.
So, how is it like ?
What is LCL？
LCL stands for less than container load.
It describes sea shipping for cargo loads not large enough to fill a full container ( FCL ) .
Specifically, your cargo will be grouped with other cargo. So LCL shipment sometimes is called groupage shipments.
In other words, you share container space with other importers.
Why should I choose LCL ?
The advantages and benefits of LCL .
• Cheap
You only pay for the volume you need, there is no need to book whole container space like FCL.
Since air freight charge as per weight in kilogram, so LCL can be far cheaper than air freight.
• Steady
Unlike FCL and air shipping, LCL costs are nearly fixed. It won’t fluctuate a lot.
LCL can be easier to get the space especially in the peak season when capacity is near-full.
When shouldn’t I ship by LCL ?
The disadvantages and drawbacks of LCL.
• Time
Compared with FCL , LCL takes more time for container unstuffing process.
And of course, as a type of sea shipping, definitely it takes longer than air shipping.
• Risks
As you can image, when combied with different kinds of products in different packing,
LCL goods can increases the chances of damage during the long jounery.
When to choose LCL shipping ?
As mentioned above advantages and disadvantages of LCL, we can come to conclusion to use LCL shipping when :
• Consignments are small, while a delicated FCL container is not suitable.
• Want to save shipping cost when shipment is large to ship by air.
• Shipment is not urgent. You can wait for more days
• Need to frequently ship small orders to customers in widely dispersed locations
• want to keep inventory levels lean
What goods are not allowed by LCL？
You can ship most types of goods as LCL freight, but the urgent and high value shipment is not recommended.
Besides that, LCL is unacceptable for the sensitive and dangerous cargo.
The list of prohibited or restricted goods potentially includes :
inflammable cargo ( such as petrol, ligher, gas, etc )
explosive material ( such as firework )
lithium batteries ( such as power banks and other electronic devices )
liquid ( such as nail polish,ink, etc )
powder ( such as chemical pigment )
magnetic (such as motor)
perishable goods ( like food )
Medicine
fine art ( like antique )
live animal
……
If you really need to ship any such items, you must strictly follow dangerous goods regulations.
The MSDS, Chemical test report, DGM, UN 38.3 etc documentation are required for verification before make the booking.
For how to ship the hazardous materials, further you can check the 7 tips from Freight Comparator.
Chapter 2
LCL Shipping Procedures
How does it work by LCL ?
When you plan a LCL shipment, you will need to know the shipping process.
In this chapter, we will introduce 2 illustration.
One is the targeted LCL shipping process flow.
Another is a more detail shipping procedure of universal application.
LCL is a relative easy shipping method. Generally, it includes 10 steps from beginning to the end :
With the lcl proess flow, you now know how lcl works.
But how to book a lcl shipment ? Use our comprehensive shipping procedure.
How to import from China? Or what’s the shipping process ?
Seriously,such questions are asked nearly everyday,especially when importermake the shipping the first time.
Today,I’m going to introduce the end-to-end shipping procedure.
Specifically,a step-by-step freight forwarding process guide.
1. Inquiry
2. Booking
3. Export Operation
4. Paying
5. Tracking
6. Import Operation
7. After sale
1. Find and choose a good China freight forwarder
Before make the shipping,you should have a freight forwarder.
Following 7 tips can be taken:
• Use your own freight forwarder,not supplier’s.
• Make sure they are legitimate
• Deal with a forwarder with rich experience
• Choose a forwarder with right shipping service
• Choose a freight forwarder in right size
• Pick a forwarder with reasonable shipping price
• Get a digital China freight forwarder
Your forwarder will then offer you theshipping quotes.
Normally, a complete air shipping proposalincludes :
• carrier name
• shpping route
• transit time
• schedule ( CUTOFF/ETD )
• detail quote
• additional remark
• validity
2. Request Quotes From The Forwarder
A detail shipment information is required in order to obtain a accuraterate.
• Commodity
• Weight
• Volume
• Quantites
• POL
• POD
• Ship Date
• Cargo Value
Once you got all these information,you can send freight requests toyour forwarder.
Either by calling,emailing or online communication(Skype,Wechat,Whatsapp).
Of course ,if you have any other special requirements like cargoconsolidation,blind shipping or ship to amazon fba,etc
You should also get your forwarder noticed.
3. Select and confirm the shipping quote you want.
With all the quotes that you’ve gathered, you can compare and pick theoffer that fit your target rate or preferred transit time.
At this point, what you need to do is :
• Confirm the quote to your forwarder
• Give the contact information of the suppliers to your forwarder
• Bill instruction, especially the details of shipper & consignee.
5. Make the Payment
Your forwarder will send you thefreight invoice.
And then you make the shippingpayment based on the amountand bank account.
After that ,shipment will bereleased.
4. Export 0peration in Ching
lt’s all about the basic work involved in getting a shipment out of China.
• Deliver or Picking up the cargo to port or airport
• Coordinating with supplier for Customs clearance
• Prepare necessary shipping documents like Packing List, Invoice
• Consolidation or palleting ,labelling etc
Buy insurance
6. Track The shipment
Once shipment booking confirmed, you can track your shipment online
and get the real-time shipment status.
What required from supplier is the Bill of Lading ( Bill No, or AWB no. ).
With that, go to the carrier’s website or use our all-in-one cargo
tracking system.
Normally, you need to pay attention to below status notes :
• Customs release time
• Onboard time
• ETA
Now I’d like to hear from your:
• Questions
• Comments
• Suggestions
• Complains
Please contact me.
7. Import Operation at destination
Now we finally came to the last step.
• Airline or shipping line will send you the arrive notice ( Just answer the phone or email )
• After that, you will need to clear the import Customs through
your own agent or use our door to door service.
• Later pay the bill for import Customs tax & duty
• Coordinate the delivery time to door
Chapter 3
LCL Required Documents
Paperwork or documentation is a important part in shipping.
What paperwork do I need for my LCL shipment?
This chapter is all about shipment documents when using LCL services.
what documents are necessary
what are optional
who provide them.
Other documents may be required depending on the cargo itself and destination country.
Including :
• Dangersours Cargo ( MSDS , UN38.3, DGM, Chemical test report )
• Product certicate ( CCC, FDA, CE,etc )
• Invoice authentication ( Egypt )
• Form M ( Nigeria )
• Fumigation certificate for wooden packing when shipping to Australia, US, etc
• ……
Chapter 4
LCL Shipping Costs
In this chapter, we gonna answer 2 questions most frequently asked
How to calculate lcl shipping charge ?
What’s your cbm price ?
The first question is asking lcl’s charge method.
The second is the quote.
How to calculate by LCL shipping costs?
In shipping service, weight and volume are matters.
That’s why you will need to give detail shipment information when send freight requests to your forwarder.
( See the step 1 of shipping proess in chapter 2. )
LCL cost is calculated primarily by volume in cubic meters (CBM).
Weight is also taken into account, but only works very heavy cargo with small volume.
✔ LCL Shipping Cost = Volume x Unit Price
Interpretation
• Volume matters more than weight
• The chargeable unit by lcl shipping is volume ( per CBM )
• For heavy cargo, then the chargable unit is per ton. Normally conversion ratio is 1
• CBM = 1000 kg
For instance
For a 5 CBM, 600 KG cargo from Shanghai to Hamburg,
When the quote is USD 50 / CBM, then total LCL shipping cost is 50 x 5 = USD 250.
However, if cargo is 5 CBM, 6000 KG, then LCL shipping cost is 50 x 6 = USD 300.
How much does it cost for LCL ?
Looking for the price in CBM ?
Use our free lcl shipping calculator to get instant estimate CBM shipping rates from China to globale countries.
Just simply select destination country or input the discharge port you need to ship.
1.What's the minimum order of Icl shipping?
For many routes , the minimum order by LCL is 1 CBM.
But for some routes like China-West Africa or China-Caribbean, minimum order can be 2-5 CBM as it takes too longer.
For goods below that, courier or Air can be more cost-effective.
2.Can I get cheaper price for big volume ?
As you can see in the price table, the interval price is given.
The more big volume, the more favorable unit price will be.
For example,
if you have 2 air shipments to Felixstowe, one 2 CBM, another is 5 CBM
For 2 CBM, O/F is USD 65/CBM.
And for 5 CBM, O/F is USD 60/CBM.
Unit price decreased 5 / CBM when volume increased.
And if you combine two shipments to ship together, the total volume is 7 CBM, unit price is cheaper at USD 55 / CBM.
You can save USD 45 for this shipment.
3.Are Icl shipping costs frequently changing ?
The answer is no.
Compared with FCL and AIR shipping, LCL cost can be the most fixed.
No matter in peak season or slack season, a LCL quote can be valid for a whole year.
The holiday or external factors like pandemic or trade war can just increase the tension of the capacity and space, but have few effect on the LCL price.
Aside from base rate, what additional charges required ?
Pay attention that LCL is also port to port service only, not door to door.
The whole shipping costs are consists of 3 parts :
1.Local charges in China
2.Ocean Freight port to port
3.Destination import fee
The given lcl shiping table price is just for cost of #2.
If you require door to door service, you need also take local charges #1 and import charges #3 into consideration.
In other words, you still need to find a local agent at the destination to take care of the import operation. Pay the costs like import Customs clearance, doc processing, delivery to door, tax, duty etc
Anyway, a completed door to door costs for LCL can be like this :
“√” means necessary charge.
The origin charge in China will be paid by your supplier when Incoterm is FOB.
Chapter 5
LCL shipment support
So the most important part : calculation & quotes have been talked.
Now it is time to introduce the supportive parts.
They are not essential, but recommended to learn for high efficiency.
In particular, the knlowledge includes :
• seaports
• sea shipping abbreviation
• sea shipment tracking
Top 10 loading ports in China
Among the world’s top 10 ports in 2023, 7 of them are located in China.
No matter where your Chinese supplier located, your goods are never too far from one of the world’s largest and most productive ports.
You don’t have to pay much attention on the geographical location of your potential vendors in China.
But knowing a bit can help figure out the best POL ( Port of Loading ).
Top 10 ports in China
Here is a glossary of shipping terminology for LCL shipping.
If you are confused some shipping words, you can further check the shipping abbreviation.
Dimensions
CBM/M³ – Cubic Metres
Height×Width×Length to work out the cubic metre of a shipment
KG – Kilograms
LB – Pounds
CF – Cubic Feet
LF – Linear Feet
R/T – Revenue tonnes
A billing unit used in the international freight industry.
W/M – Weight or Measure
Billing will be based on whichever is greater based on the converstion factor
Documents
B/L or BOL – Bill of Lading
A document issued by the carrier to the shipper as a contract of carriage, it must be presented at destination in order for the goods to be released it is a document of title for the goods
D.O. or D/O – Delivery Order
A document which orders the release of freight to another party. Unless in North America, do not mistake this for delivery instructions or a document of title for the goods. In North America a delivery order is a delivery instruction.
Freight Release
Referred to in North America as a document that orders the release of freight to another party.
L/C – Letter of Credit
This is a document issued by a bank to another bank to serve as guarantee for payments made to a specified person under specified conditions
MSDS – Material Safety Data Sheet
Provides procedures for handling Dangerous Goods (DG) in a safe manner. It will confirm how the goods can travel and if they can be loaded with other Dangerous Goods
SLI – Shippers Letter of Instruction
A document filled in by the shipper providing all the details related to the shipment – Shipper and Consignee, dimensions and weight, description of the goods and shipping terms
Incoterms
People
CNOR/CNEE – Consignor/Consignee
Seller / Buyer
SHPR-Shipper
Chinese supplier or importer
Places
ATF – Approved Transtional Facility
Has site approval and an accredited MAF person to received and inspect import containers
CFS – Container Freight Station
Container freight handling depot
CY – Container Yard
Refering to the shipping lines container storage yards, they are likely to be inland ports
POL/POD – Port of Loading / Port of Discharge
Time
ATD/ATA
Actual Time of Departure / Actual Time of Arrival
ETD/ETA
Estimated time of Departure / Estimated Time of Arrival
CUTOFF/CLG
Closing time of Customs clearance
T.T
Transport time
Surcharges
AMS – Amercian Maritime Security
Compliance costs associated with USA border security laws and procedures
BAF/BUC – Bunker Adjustment Factor / Bunker Charge
Fuel Surcharge on a shipping vessel. The BAF applies according to the number of TEUs shipped and is charged by the shipping companies to compensate for fluctuations in fuel prices. This surcharge varies from route to route.
EBS-Emergency Bunker Surcharge
The EBS is similar to the BAF in the sense that it covers rise in fuel prices. The EBS can also vary according to the shipping container type and shipping route.
CAF – Currency Adjustment Factor
Charged to cover currency fluctuation.It typically applies when there are significant fluctuations in exchange rates and is charged as a percentage of the ocean freight rate.
CABAF – CAF and BAF charges combined
FAF – Fuel Adjustment Factor
Fuel charges on road units or on airfreight
GRI – General Rate Increase
Used by shipping lines to label general increase in ocean freight rates on particular trade routes
ISPS – International Ship & Port Facility Security
To cover security handling at the origin and destination ports/depots
SCA – Sea Cargo Automation Fee
Applied by Australian Customs to the computer system that coordinates and controls the reporting and delivery of import sea-cargo in Australia
AI-All Inclusive
The total price to move cargo from point of origin to destination (transportation costs only)
BL Fee-Bill of Lading Fee
The shipping line charges this fee for processing the bill of lading on behalf of their client.
CBP-Customs and Border Protection
This the duty and associated processing fee when shipping goods from one country to another.
CYRC/CYC: Container Yard Receiving Charge / Container Yard Charge
It’s a terminal handling charge. This fee is payable to a shipping line for receiving a full container load, storing it, and delivering it. Delivery is to the ship at the port origin or it is to the consignee at the destination port.
DDC-Destination Delivery Charge
This charge is based on container size. It is applied in many tariffs to cargo as an accessorial charge on base ocean freight. It covers crane lifts off the vessel as well as drayage of the container and gate fees at the terminal.
THC-Terminal Handling Charge
Terminal handling charges apply to origin . It’s charged to FCL shipments to cover the container handling cost at the shipping terminal, including the loading and unloading of the container from the truck, as well as the transportation of the container to and from the vessel.
DTHC-Destination Terminal Handling Charge Fee
Charged by the port of arrival or port of discharge to lift the container onto or off the vessel.
EIS-Equipment Imbalance Surcharge
A surcharge imposed by shipping lines, at times, for the movement of large quantities of empty containers. A lack of export activity from the country where they were shipped full typically creates the need to do so. This is a flat rate per container when it is charged.
ERR: Emergency Rate Restoration
A surcharge added to the cost of freight to cover increases in shipping costs.
ERS: Equipment Repositioning Surcharge
This fee is imposed for the movement of empty containers from one location to another when requested by a shipper.
ISF: Importer Security Filing
A US Customs and Border Protection (CBP) regulation requiring importers and vessel carriers to provide data electronically to CBP for in-bound ocean shipments.
GAS: Gulf of Aden Surcharge
Compensates shipping lines for additional costs incurred due to transit through the Gulf of Aden.
OWS/OWC: Overweight Surcharge / Overweight Charge
It is a fee charged by shipping lines when each container exceeds the designated acceptable weight range for its size.
SCS: Suez Canal Surcharge
Compensates shipping companies for additional costs incurred during transit through the Suez Canal
SES: Special Equipment Surcharge
Seldom use it
PSS-Peak Season Surcharge
Carriers implement PSS during the shipping peak season (between July and October) to cover the increase in operational costs.
This can greatly increase your overall international shipping costs as carriers are already charging higher freight rates during this peak period.
The PSS is limited to and applied during the shipping peak season.
PRE-PULL
A pre-pull fee is charged when an empty container picked up from the port early and stored at a yard in order to meet a specific loading schedule the following day. This is usually the case for cargo that needs to be loaded onto a container on very tight loading times or dates.
VGM-Verified Gross Mass
This fee is charged by accredited facilities licensed to weigh shipping containers to comply with SOLAS regulations requiring all containers loaded on shipping vessels to have their gross weight declared.
Modes
20FT, 20′, TEU – Standard 20 foot shipping container
40FT, 20′, FEU – Standard 40 foot shipping container
FR – Flat Racks
HC – High Cube container
OT – Open top container
RF/Reefer – Refrigerated Container
B/B, B/Bulk – Break-Bulk
A large shipment, usually too big for a shipping container, that can be loaded directly onto a ship
DG – Dangerous Goods
Goods that could be harmfully to people and the enviroment and may require special handling
FAK – Freight All Kind
Full container load with a combination of freight from different shippers
FCL – Full Container Load
For higher volume shipments at least over 15 cubic metres total
LCL – Less than Container Load
For smaller sea freight shipments that do not require a full container. Minimum shipment size is 1 cubic metre (CBM/M³) to 1 tonne
LSE – Loose Airfreight
Goods travelling by airfreight on its own and not in a consolidation with other freight
LO LO – Lift on Lift off
Term used by carriers when shipping containers are lifed off the vessel (import) or forwarders truck (export) onto the forwarders truck (import) or vessel (export)
GP – General Purpose Container
Otherwise known as a standard container
OOG – Out Of Gauge
When your shipment over hangs the dimensions of a shipping container
RO RO – Roll On Roll Off
When a shipment can either be driven or towed on and off a vessel
SOC – Shipper Owned Container
Shipping container owned by the shipper rather than the shippng line
How to track the LCL shipment ?
The easiest way is to ask the forwarder to do the checking for you and keep duly posted for the detail tracking result.
However, if you want to track the real shipment status by yourself, you should know the following :
• which shipping line is transporting your cargo
• container number or bill number.
You can use our sea track and trace system which collects 25 major shipping lines who we worked with for cargo from China.
Just go the the target shipping line tracking website and input the container no. or B/L no.
Chapter 6
Expert Tips Collection
Without further ado, let’s get started with the last chapter.
In this chapter, I’m going to instroduce some tips based on my 10 years experience of LCL shipment operation.
Each tip can be very useful in practice.
Keep reading.
1.Get LCL shipment well packed and insurance covered
If you still remember the drawbacks of LCL, the cargo shipping risks of LCL is higher than FCL since it requires unstuffing process.
So the cargo better be palletized to avoid damage or missing during the transhipping and devanning.
And remember to buy insurance for every LCL shipment especially for fragile goods and high value cargo.
Shipping Sofety
2.Check the destination co-loader charge
Despite ocean freight in CBM is cheap for many shipping routes, the destination import fee of co-loader can be expensive.
Many of the co-loader chargeable items are also in CBM. So even exceed $ / CBM.
Again, LCL is port to port service, not door to door.
So to avoid the misunderstanding when you find the amazing destination charges, you can directly ask port to door or door to door service.
If only requires port to port service, you should at least check the destination co-loader fee from your forwarder, make sure it is reasonable.
Shipping Sofety
3.Consolidate the shipments and ship goods together
Remember the interval price of LCL ?
If you have various shipments from different suppliers, don’t ship separately, but consolidate to ship together.
It can save a lot for you.
Corgo Consolidotion
4.Pay attention to the delays during the transshipping or devanning.
For shipments to basic major ports, normally LCL freight takes 2-5 days longer than FCL container shipping.
But for shipments to minor ports or remote shipping routes or countries, LCL requires 2 weeks to 45 days
The reason is the transshipping or devanning from discharge port to the container freight station.
For example,
FCL transit time from Shanghai to Apapa Nigeria takes about 40-45 days.
But for LCL, it could be 70-80 days.
Why ?
The LCL Coloader must wait for enough cargo in Durban South Africa, then consolidate a whole container shipments to Nigeria.
They won’t suffer loss to transship your 2 CBM cargo with a container, right ?
For another example,
There is no direct service to Liechtenstein since it is a very small country.
You can still use LCL service when transit via Italy or Switherland.
Just it takes about 24 days to Genoa Italy, while 45 days may needed to Liechtenstein.
Bottom line :
LCL takes more time, sometimes it beyond your expectation.
Be prepared for the delay. Leave enough time for delivery.
Time planning
CONCLUSION
That’s all for my guide to LCL shipping.
It cover 80% topic of the whole indutry.
It could be the cheapest solution when time not matters.
If you plan to ship from China, now or in the future, please contact me, and I will provide you with a solution subsequently.
