By Vincent Wen.    Photo：Tom Van Dyck

LCL, which stands for "less than container load" in English, is a term used for cargo that is insufficient to fill an entire shipping container. Depending on the type of cargo and its destination, different carriers consolidate and load LCL cargo into a single container for shipment to the destination. At the origin of the shipment, the LCL cargo agent will collect and consolidate the cargo into a container, then book the cargo space with a shipping company. Upon arrival at the destination port, the destination agent, known as a co-loader, is responsible for unloading and distributing the cargo from the container.

This method is suitable for small-volume or lightweight cargo and is often the preferred choice for small businesses company.

The cost structure of LCL cargo typically consists of three components:

Local charges at the origin.

Ocean freight charges（O/F）.

Co-loader charges at the destination.

The ocean freight charges, usually the most concerning for customers, are calculated in USD. The calculation method is typically based on CBM (cubic meters) and weight (ton), using a ratio of 1:1. If the cargo has a larger volume (CBM), it will be priced based on CBM, and if it has more weight
(ton), it will be priced based on ton. The shipping company may offer different pricing based on CBM and ton. Please note that the conversion rate for inland transportation in the United States and Canada is 1 CBM = 363 KG.

Customers may sometimes wonder why some shipping routes between Southeast Asia and China have negative freight charges to refund, this is a pricing strategy made by some freight agents to attract more cargo, these agents may offer refunds to exporters, transferring the cost burden to importers, who may then pass the cost on to exporters in the form of business of goods.

Most shipping routes have a minimum charge for 1 CBM, and any cargo less than 1 CBM is calculated as 1 CBM. However, for some remote routes with limited cargo and a higher risk of abandoned cargo (e.g., certain islands in Central and South America and the Caribbean), the minimum charge may be based on 2 CBM.

In general, if the cargo exceeds 15 CBM, it is advisable to consider using a 20GP container. This option is safer and helps prevent cargo loss during container unloading and distribution, and it can also be more cost-effective on certain routes.
 

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