LCL Shipments: Advantages and Disadvantages Explained

What does LCL mean, and when should you choose it? If international shipping is part of your business, chances are you’ve come across the term LCL. But what exactly does it mean, and is it the right choice for your shipment? Let’s break it down.

What is LCL, and how does it work?

LCL stands for “Less than Container Load.” Instead of booking an entire container, you only use the space you actually need—often just a few pallets.

Here’s how it works:

• Your goods are delivered to a warehouse, where they’re combined with shipments from other companies.

• Once consolidated, the container is sent to the port, loaded on a vessel, and shipped overseas.

• On arrival, the process is reversed: the container is unloaded at a warehouse, and your goods are separated and made ready for pickup or onward transport.

Because you’re sharing space, there are extra handling steps compared to a full container load (FCL), but the trade-off can be worth it.

The advantages of LCL shipping

• Cost efficiency – Pay only for the space you use, not an entire container.

• Market access – Smaller businesses can participate in international trade without needing large volumes.

• Flexibility – Ship smaller batches, helping you manage inventory more efficiently.

The disadvantages of LCL shipping

• Higher risk of damage – More handling and more shippers in one container increases risk.

• Possible delays – Your cargo depends on other shipments being ready, and customs checks can hold up the entire container.

• Uncertain costs – Market rates can fluctuate.

Want to learn more? Or need help?

At Berkman Forwarding, our specialists deal with LCL shipments every day. We’ll help you decide whether LCL or FCL fits your situation best, and run the numbers with you to make sure you get the most efficient option.