LCL (less-than-container load) is a term given to container loads that are filled by multiple orders or goods. It’s a common option many businesses take when shipping smaller orders as it presents many benefits, particularly in terms of cost. There are, however, some disadvantages to consider too though.
Read on to find out the pros and cons of LCL.
- Less Expensive: LCL shipping can save businesses a lot of money if they often ship small orders. As they are sharing the container with other orders, they are able to split shipping container expenses among multiple businesses.
- Shorter Delivery Time: Many businesses wait until they have a sufficient amount of orders before shipping to be able to fill out a whole container. LCL can therefore cut waiting times for you and your customers.
- Less Inventory Management: As you will have a lower volume of goods with LCL as opposed to a full container, inventory management will be minimal.
- Increased Risk of Logistical Issues: As LCL involves combining goods from various suppliers, there is an increased risk of logistical issues occurring (such as items getting delivered to the wrong buyer).
- Higher Costs Per Unit: As there are additional logistics and management involved with shipping multiple goods in one container, LCL shipping costs are normally more expensive per container.
Determining whether LCL is the best logistical solution for your business can be tough as there are a number of factors to consider. Fortunately, ISS is here to help.
Our services include container shipping, and we are able to help you determine the fastest and most cost-effective way to ship your goods.