LCL transportation is a flexible and cost-effective transportation method preferred in the logistics sector, particularly for small and medium-sized shipments. In this system, multiple shippers share a vehicle or container instead of a single shipper. This allows each shipment to be transported cost-effectively, even if it doesn't fill the entire transport area. LCL transportation, which can be implemented across various modes of transportation such as sea, road, and rail, provides high efficiency for both national and international shipments. LCL transportation ensures timely delivery of shipments, offering shippers significant cost savings and logistical flexibility. This makes it an ideal logistics solution for companies with low volumes but regular shipments.

What is LCL Transportation?

LCL transportation is a logistics model that combines shipments from different shippers on the same route onto a single transport vehicle. This system was developed specifically for companies whose cargo cannot fill a single vehicle or container. It allows for efficient use of transport space and allows for cost sharing. LCL transportation allows shippers to ship their shipments without delay. This contributes to both shorter shipping times and lower inventory costs.

LCL transportation requires logistics service providers to optimize their operational capabilities, such as cargo collection, intermediate warehouse utilization, reloading, and distribution. Separate packaging, labeling, and securing processes are meticulously implemented to ensure the safety of cargo during transport. This ensures that multiple shippers' cargo reaches their delivery points without mixing or damage during transport.

Businesses that ship regularly but in low volumes, such as those in e-commerce, textile, spare parts, retail, and food sectors, gain greater flexibility in their logistics operations by opting for LCL transportation. Furthermore, in sectors with high demand fluctuations, LCL offers a more dynamic structure than full-capacity transportation, creating a strategic advantage for companies seeking faster market response.

Differences Between LCL (Sea Freight) and LTL (Road Freight)

Although LCL and LTL, the two most commonly used LCL transportation methods, operate on similar principles, they offer different advantages and areas of use compared to different transportation modes:

LCL (Seaway Partial Cargo)	LTL (Land Less Than LTL)
It is preferred for international and intercontinental transportation.	It is suitable for domestic and short-distance international transportation.
Container-based transportation is done.	Transport is done in a truck or trailer.
Cargo consolidation is carried out in ports or warehouses.	Load consolidation is done in logistics centers.
Delivery time is usually longer (15-40 days)	Delivery time is shorter. (1-7 days)
It offers high cost advantage at long distances.	Provides economical solutions for medium distances.
Customs procedures are more complex and detailed.	Customs procedures are simpler and faster.
It is more suitable for large volume loads.	Ideal for low volume, frequent shipments.
It is preferred by exporters, manufacturers and retailers.	Suitable for e-commerce companies, distributors and small businesses.

 

Advantages of Partial Transportation
Main advantages of partial transportation

• Transporting loads that are not full capacity by combining them with other shipments significantly reduces transportation costs.
• The ability to transport small volumes of cargo more frequently and in a planned manner provides greater flexibility in stock management and delivery processes.
• Using transport vehicles at maximum capacity means fewer trips, which reduces fuel consumption and carbon emissions.
• Shipping loads in a shorter time reduces the need for storage space and associated costs.
• It offers a low-risk and controlled transportation solution for companies that want to enter new markets with small-scale shipments.
• Thanks to professional load consolidation operations carried out in consolidation centers, more planned and organized shipments can be made.
• Test shipments can be made in different markets with low volume shipments, enabling the evaluation of new trading opportunities with low risk.

Consolidation and Storage Stages

In partial shipments, loads from different shippers are brought together at consolidation centers. These centers ensure that loads are collected at a single location before being distributed to different transportation vehicles. At consolidation centers, loads from different shippers are carefully organized, appropriate transportation methods are determined, and packaged considering the conditions required for transportation.

The storage stage follows immediately after the consolidation process. Loads are placed in appropriate areas within the consolidation centers for temporary storage. Storage provides significant convenience, especially when loads need to be transported at different times. This process ensures the safe storage of loads and allows them to be moved at the most convenient time for transportation. Orderly placement of loads during storage prevents confusion and prevents any loss. Furthermore, inventory control in storage areas allows for real-time monitoring of the status of each load.

These arrangements during the consolidation and storage stages ensure more efficient and safe transportation processes. The timely and complete delivery of loads depends on how accurately and effectively these processes are carried out.

Route Planning and Transit Times

In LCL transportation, effective route planning is critical for shortening delivery times and reducing costs. Transportation companies optimize routes to deliver cargo as quickly and cost-effectively as possible. Factors such as traffic congestion, weather conditions, and customs procedures are taken into account during this process.

The most suitable routes are selected to minimize obstacles such as traffic congestion and weather. Furthermore, customs procedures are taken into account in international transportation to ensure smooth processes.

Sound route planning reduces transit times, enables more efficient cost management, and helps ensure the safe delivery of cargo.

Freight Calculation and Pricing

Freight calculations in LCL transportation depend on factors such as the cargo's volume, weight, and distance. Generally, the volumetric weight and gross weight of the cargo are compared, and the calculation is based on the higher value. This method ensures fair and accurate determination of transportation costs.

Level Freight Components

The main components considered in the freight calculation for partial freight transportation are:

• It's the ratio of the space occupied by the load to the capacity of the transport vehicle. Volumetric weight determines how much space the load occupies and the space efficiency of the transport vehicle. This calculation is especially important when transporting lightweight but bulky loads.
• The total weight of the load. The actual weight of the load determines how much capacity the transport vehicle uses during transportation and is a key factor in freight calculations.
• The distance the freight will be transported. Longer distances can increase transportation costs, so distance is a key factor in pricing.
• The cost of additional services such as insurance, customs clearance, and warehousing are also included in the freight calculation. While these services increase the safety and efficiency of the transportation process, they also create additional costs.
• The type and capacity of the transportation vehicle used also affects the cost. Different transportation options, such as land, sea, air, or rail, can have different impacts on the price.
• The type of cargo and its specific handling requirements can also affect freight pricing. Sensitive cargo often requires increased security measures and specialized transportation.
• Delivery times can affect shipping costs. Urgent deliveries or shipping that must be completed within a specific timeframe are typically priced higher.
• The type of packaging used in transporting cargo also affects costs. The packaging materials and methods used to transport cargo safely are reflected in the cost of transportation.

 

Getting an Online Freight Quote

Today, many logistics companies offer the opportunity to obtain freight quotes through online platforms. These platforms allow shippers to quickly and easily obtain freight quotes by entering their shipment details. This process allows for predetermined transportation costs and more efficient budget planning.

If you want to easily receive the most suitable freight quote for your shipment, use Enco's online quote system now. Streamline your logistics process with fast, reliable, and transparent solutions!

Loading, Security, and Insurance

In LCL shipping, because loads from multiple shippers are transported in the same vehicle, loading order, packaging quality, and insurance are critical. Each load must be carefully packaged and properly palletized to prevent damage during transport.

Measures taken to prevent damage, loss, or delays during transportation reduce the sender's liability and ensure a safe delivery experience for the recipient. Therefore, comprehensive cargo insurance, along with loading security, is essential for LCL shipping.

Palletizing and Packaging Standards

International packaging and palletizing standards are used in LCL transport to ensure orderly, safe, and easy transport of cargo. During the packaging process, cardboard boxes, plastic wrap, corner supports, and impact-resistant materials protect cargo from external factors.

Palletizing facilitates the balanced and safe placement of cargo both in storage and during transport. Furthermore, when cargo is transported on pallets, it allows for rapid loading and unloading with equipment such as forklifts and pallet jacks. This increases operational efficiency.

Cargo Insurance Options

Because cargo is transported by different shippers, the risks involved throughout the transport process are greater. Therefore, insurance is crucial to minimize potential losses and enhance trust between shipper and receiver. Different types of insurance can be selected depending on factors such as the value of the cargo, distance traveled, mode of transport, and risk level.

When selecting insurance, the nature of the cargo, the risks it may face during the transport process, and the shipper's operational priorities should be taken into consideration. This prevents financial losses and makes the transportation process safer and more professional.

Customs Clearance and Documentation

In international LCL shipping, customs clearance procedures and the complete and accurate preparation of all necessary documents are crucial. This process is a critical factor affecting transit time. For smooth customs clearance, it is recommended to work with an experienced logistics company.

Export-Import Documentation Checklist

In international shipping, the following documents must be prepared completely and accurately:

• Commercial invoice
  It includes the price of the products, party information and transaction details.
• Packing List 
  It shows the distribution of products on a per-box basis and their packaging details.
• Bill of Lading / Transport Document
  It is a shipping document issued according to the transportation mode of the cargo.
• Customs Declaration
  It is the official document declared to the customs administration.
• Certificate of Origin
  Indicates the country where the product was manufactured. Mandatory for some countries.
  Atr / EUR.1 Document
  Provides customs exemption in trade with European Union countries.
• Insurance Policy
  It shows that the cargo is secured against possible risks during transportation.
• Proforma Invoice
  The estimated invoice presented before the sale is used especially in the preliminary authorization and offer stages.
• Shipping Instructions
  It is the instruction given to the transportation company, containing loading details and delivery information.
• Import / Export Permits
  Special permits required for certain product groups (medicine, food, etc.).

 

Incoterms 2020 Applications

Incoterms 2020 rules, which determine the rights, responsibilities, and cost allocation between parties in international trade, also play a critical role in LCL shipments. These rules clearly define the extent to which the buyer and seller are responsible and help prevent potential disputes.

Thanks to Incoterms 2020:

• It becomes clear which party will cover the transportation costs.
• It is determined who is obligated to have insurance.
• It becomes clear who will make which declarations and provide the documents in customs procedures.
• The point of delivery and the moment the risk passes become legally clear.

These rules also create a common language on a global scale, preventing potential conflicts arising from the parties' domestic legal systems in trade with different countries. In situations where different loads are transported together, such as in partial-freight shipments, and delivery processes become more complex, misunderstanding Incoterms rules can lead to costly errors. Therefore, choosing the correct term and ensuring that all parties are familiar with it is crucial when drafting commercial contracts.

Why Enco Logistics?

Enco Logistics stands out with the professional services it offers in LCL transportation. With its experienced team and extensive transportation network, Enco Logistics delivers your cargo to its destination quickly, safely, and economically. The specialized solutions it offers in LCL transportation create cost advantages for businesses of all sizes while reducing operational burdens.

Furthermore, Enco Logistics saves its customers time and resources by managing all logistics processes end-to-end, including consolidation, warehousing, customs clearance, and insurance. Its advanced digital platforms, which allow you to track your cargo, offer transparency and assurance at every step of the transportation process. Working with Enco Logistics means entrusting your logistics processes to expert hands.

Frequently Asked Questions (FAQ)

What is LCL transportation?

LCL transportation is a logistics method in which cargo belonging to multiple customers destined for the same destination is combined in the same vehicle. This system enables the cost-effective transportation of small and medium-sized cargo.

How is the LCL freight rate calculated?

The freight rate is calculated based on the volume of the cargo, gross weight, transportation distance, and additional services. The volumetric weight and gross weight are usually compared, and the higher weight is used.

Are fragile or delicate products safe for LCL shipments?

It is safe, but proper packaging and palletizing are essential. Furthermore, insurance and discussing the product's sensitivity with the carrier minimize risks.

 

What documents are required for LCL shipments?

Generally, a commercial invoice, packing list, transport document (CMR or bill of lading), certificate of origin (if applicable), and customs declaration are required. Documentation requirements may vary depending on import and export procedures.