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LCL CHARGE LC

Abbreviation
LC
Short code for this term
Category
Fees & Surcharges
Ocean freight fee type
Index
L
Alphabetical index letter

Definition

The LCL Charge, or Less than Container Load Charge, is a fee associated with the shipping of goods that do not occupy an entire container. This charge arises primarily because the cargo must be consolidated with other shipments to optimize space in a single container. The process of combining various shipments requires additional handling and coordination, which is why this charge is levied.

Typically, the charge is collected by the freight forwarder, who is responsible for organizing the consolidation of goods. The party responsible for paying this fee is generally the shipper or the consignee, depending on the terms of the shipping contract. LCL shipments are particularly beneficial for companies that do not have enough volume to fill a full container, allowing them to share space and costs with other shippers.

The calculation of LCL charges is based on the volume or weight of the cargo, whichever is greater, often quoted as a rate per cubic meter or per metric ton. This is distinct from FCL, or Full Container Load, where the cost is determined by an entire container, regardless of how full it is.

In practice, it is crucial to accurately measure and declare the volume and weight of your shipment to avoid additional fees or delays. Understanding the distinction between LCL and other charges, such as terminal handling charges or documentation fees, is essential for managing shipping costs effectively. Moreover, coordination with a reliable freight forwarder can help ensure that the consolidation process is smooth and efficient, minimizing potential disruptions in the supply chain.

Summary

LCL Charge for handling Less than Container Load cargo.