When you need to ship a smaller load that's not big enough for a dedicated container, consider an ocean freight consolidation.
Also known as less-than-container load (LCL) shipping, ocean freight consolidations allow your freight to share space in a container with other cargo. It's an efficient, flexible way to move goods, especially if you're shipping a relatively small volume (~15 cubic meters/CBM or less).
In this guide, we'll walk you through all the ins and outs of ocean freight consolidations so you can navigate the shipping process with confidence.
In This Article
- What Are Ocean Freight Consolidations?
- How Do Ocean Freight Consolidations Work?
- When Is LCL the Right Choice?
- Watch Out for These Ocean Freight Consolidation Pitfalls
- Ocean Freight 101: Choosing the Right Shipping Method
LCL vs. FCL: What’s the Difference?
Ocean Freight Container Sizes: What You Need to Know
What Are Ocean Freight Consolidations?
Ocean freight consolidations combine cargo from different shippers into a single container bound for the same destination. You might think of it like arranging a carpool for freight.
Ocean freight consolidations are generally assembled by freight forwarders, who collect and store cargo from each shipper. Once the forwarder has enough cargo, they load it into a container and arrange to ship the container to its destination.
The Advantage for Shippers: Rather than paying for an entire dedicated container, you pay only for the portion you use. This makes ocean freight consolidations a particularly useful strategy for a business that only needs to move small volumes of freight.
How Do Ocean Freight Consolidations Work?
Let's take a step-by-step look at how a typical consolidation/LCL shipment is handled:
- Booking the shipment: You reach out to a freight forwarder to book a spot in an upcoming ocean freight consolidation.
- Cargo drop-off: Either you or your freight forwarder arranges for your goods to be delivered to a warehouse where the cargo will be stored until the load is ready to move.
- Cargo loaded for shipping: When the freight forwarder has enough for a full load, they'll pack all the cargo into an ocean freight container. (Note: Some freight forwarders move consolidations on a set schedule, rather than waiting for a full load.)
- Container moves to the port: The container is sealed and trucked to a nearby port for loading onto a vessel at the origin port. The ship is loaded, and then it departs for its destination.
- Arrival at destination port: The ship arrives at the destination port, where the container is unloaded from the vessel. For international freight, containers will pass through customs/import processes. After any clearance procedures, the container will be trucked to a nearby warehouse.
- Deconsolidation: At the warehouse, the container is opened, and each shipment is separated and processed for final delivery or pick-up.
When Is LCL the Right Choice?
LCL shipping is ideal when you don't have enough cargo to fill a dedicated container. But consolidations can also provide some additional benefits for businesses, including greater flexibility.
Below, you'll find a few common situations where LCL/consolidations make sense:
You're Shipping Less Than 15 CBM
Typically, if your cargo measures less than 15 CBM, LCL will be more cost-effective, since you'll only pay for the space you actually use when you choose LCL service.
Your Shipment Volume Varies
For companies that don't ship large volume of goods regularly, LCL offers the flexibility to move smaller shipments as needed. No need to accumulate enough volume for an FCL shipment.
You're a Small Business or a Startup Entering a New Market
If you're just getting started, LCL allows you to scale gradually without large upfront freight costs.
You Need More Frequent but Smaller Shipments
For some businesses, holding a large volume of inventory isn't feasible. LCL allows you to ship smaller batches more often. This helps with cash flow, reduces your carrying costs, and minimizes your storage needs.
Watch Out for These Ocean Freight Consolidation Pitfalls
As you can see, LCL shipping can offer several advantages to shippers. However, it also comes with a few unique challenges. Keep these in mind so you can more effectively plan your shipments—and avoid unnecessary delays or costs.
1. Handling Fees and Charges
LCL shipments typically involve more touchpoints, which can lead to fees for things like consolidation and deconsolidation.
Solution: When you get your LCL quote, ask your freight forwarder whether it includes all the potential fees—or whether you should expect additional line items on your final invoice.
2. Longer Transit Times
Because your cargo will travel with other shipments, yours may have to wait in a warehouse until the container is ready to move. After the shipment arrives to the destination warehouse, you'll also need to wait for the forwarder to deconsolidate the container, which can add a day or two onto your timeline.
Solution: Make sure you ask your forwarder for an estimated timeline when you book your ocean freight consolidation so you know what to expect.
3. Higher Risk of Damage
With multiple shipments that need to be loaded and unloaded at different points along the journey, LCL cargo is handled more than an FCL shipment, potentially increasing the risk of damage.
Solution: Use sturdy packaging for your LCL cargo. Ask for your freight forwarder's assistance if you're unsure whether your packaging methods will fully protect your shipment. If your goods are fragile or high-value, discuss extra precautions with your freight forwarder.
4. Customs Delays
When it comes to international shipments, if one shipment in a container has paperwork issues or gets flagged for inspection, it can delay the entire container—including your cargo.
Solution: Choose experienced freight forwarding partners who know how to vet documentation thoroughly to reduce the risk of customs hold-ups.
Ocean Freight 101: Choosing the Right Shipping Method
Now that you understand the ins and outs of consolidations, let's take a broader look at ocean freight so you can be sure that consolidation/LCL is right for you.
LCL vs. FCL: What's the Difference?
When it comes to shipping by sea, you'll choose between two types of service: less-than-container load (LCL) and full container load (FCL). Below, we'll run through the differences.
LCL (Less-than-Container Load) / Consolidation
- What it is: You share a container with cargo from other shippers.
- Cost: You pay only for the space you use.
- Speed: Can be slower, since your shipment may have to sit in a warehouse while the forwarder assembles a full load.
- Risk for Damage: Can be higher, since an LCL shipment sees more handling compared to an FCL shipment.
- Best for: Smaller shipments under ~15 CBM.
FCL (Full Container Load)
- What it is: You get exclusive use of a dedicated container.
- Cost: You pay for the entire container, regardless of whether you fill it entirely.
- Speed: Typically faster, since your cargo can move as soon as there's a vessel with space.
- Risk: Lower, since cargo is loaded into the container once, then sealed to its destination.
- Best for: Larger shipments, fragile goods, high-end goods, or time-sensitive cargo.
When to Choose LCL vs. FCL
| Factor | LCL (Less-than-Container Load) | FCL (Full Container Load) |
|---|---|---|
| Volume | Typically under ~15 CBM | ~15 CBM and larger |
| Handling | More handling | Minimal handling |
| Transit Time | Can be longer | Generally faster |
| Security | Moderate (shared space) | Higher (sealed container) |
For more, check out our article on choosing between FCL and LCL.
Container Sizes: What You Need to Know
Understanding ocean freight container sizes will help you plan your next shipment more effectively—and decide whether LCL or FCL is the better fit.
Below, you'll find the dimensions for the most common ocean freight containers:
Ocean Freight Container Specs (Metric)
| Container Type | Approx. Dimensions (m) | Max Volume (CBM) |
|---|---|---|
| 20-foot Standard | 5.9 x 2.35 x 2.39 | ~33 CBM |
| 40-foot High Cube | 12 x 2.35 x 2.69 | ~76 CBM |
Ocean Freight Container Specs (Metric)
| Container Type | Approx. Dimensions (ft) | Max Volume (ft3) |
|---|---|---|
| 20-foot Standard | 20′ x 8′ x 8’6″ | 1,171 |
| 40-foot High Cube | 40′ x 8′ x 9’6″ | 2,694 |
Deciding Between Containers
- If your shipment is less than 15 CBM, you'll likely fall into LCL territory.
- Between 15–28 CBM, you're nearing the capacity of a 20-foot container. FCL may be more cost-effective, even if you don't completely fill the container.
- Over 28 CBM, you're likely looking at FCL in a 40-foot container.
The best way to know for sure? Request a quote from one of our Approved ocean freight experts. They can help you cost out all the possible scenarios to get the most out of your freight budget.
Need Some Help Calculating the Volume of Your Freight?
To calculate CBM for your shipment, use this formula:
Length (m) × Width (m) × Height (m) = CBM
To calculate the volume of your freight in imperial units, use this formula:
Length (ft) × Width (ft) × Height (ft) = cubic feet (ft3)
Note: Calculating accurate volume depends on accurate freight measurements. We'll show you how to get it right in our article, How to Measure Freight – the Right Way.
FAQs: Ocean Freight Consolidation
When you're new to freight shipping, it's natural to have questions—especially about a specialized process like freight consolidation. Below, we'll answer some of the most common questions we hear about LCL shipments:
Making Ocean Freight Consolidations Work for Your Business
Choosing ocean freight consolidation can be a smart decision, especially if you're moving smaller volumes of cargo. The right freight forwarder can add ease to the process, help you calculate accurate timelines, and ensure that your freight dollar goes farther.
Our experts have been helping businesses choose the right ocean freight solutions since 1991. Whether you're shipping for the first time or scaling your operations, our team can guide you every step of the way.
Reach out today for a free quote for your next ocean freight shipment.
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