Are you a small business looking for shipping solutions? Maybe you’re unsure about which shipping method is right for you. In this step by step guide to LCL shipping for small businesses, we’re breaking down the shipping process to make it easy to understand exactly how LCL or Less Than Full Container Shipping works, and whether or not it’s the right choice for your business.
What Is LCL Shipping?
LCL shipping is one method of shipping goods into the UK via sea freight,
LCL shipping is an abbreviation for ‘Less than full Container Shipping’. The alternative to LCL shipping is FCL shipping, which is short for ‘Full Container Shipping’.
In FCL, you pay for the exclusive use of an entire shipping container, whereas in LCL shipping, you only pay for the space you use, meaning that your goods share a container with other people’s goods.
This makes it an appealing option for businesses that are unable or don’t want to fill a full shipping container with goods.
Who Is LCL Shipping Suitable For?
With LCL shipping, prices are calculated according to the volume you require inside the shipping container (i.e. how much space your products will take up once packed for shipping). This is in contrast to FCL shipping, in which you’re charged a flat rate for a container and it’s up to you how much you fill it.
Typically, this makes LCL shipping the most suitable shipping method for businesses that want to ship smaller volumes of goods.
Businesses might need to ship smaller volumes of goods for several reasons, including:
- New start-ups that don’t yet have the capital or storage facilities that will allow them to invest in a large amount of stock upfront.
- Businesses who want to test products or shipping services before making a significant commitment.
- Businesses that sell low-volume goods (small products, that don’t take up a lot of space even in large quantities).
- Small businesses.
For these businesses, LCL shipping offers a more economical shipping solution than paying for the sole use of a shipping container, as they would in FCL shipping.
How Does LCL Shipping For Small Businesses Work?
To help you understand how LCL shipping works and decide whether it’s the right shipping option for you, we’ve broken the process down into a step-by-step guide to LCL shipping for small businesses.
Step One: You Buy Your Goods
You buy your goods as you usually would. Before you pay your supplier, be sure that you understand their shipping terms, and that you have a weight and volume estimate for your goods,
Step Two: Your Shipment Is Booked
Once you’ve purchased your goods, contact Shippo for your freight costs. This will also enable you to calculate your VAT, Customs Duty or Excise Duty.
Shippo’s local overseas agent will contact your supplier, and based on when the goods will be ready to ship, they will decide which vessel they will catch and book your container.
Step Three: Your Goods Are Packed
Your supplier will pack the goods in their factory and they will be collected, or delivered to a warehouse at the port from which your goods will sail.
Step Four: Your Goods Are Loaded
The warehouse will then load your goods into a shared container along with the goods of other customers who have booked LCL shipping in the same container.
Step Five: Your Goods Are Shipped
At this stage, the container is sealed and taken from the warehouse to the port where it will be loaded onto the container ship that will bring it to the UK.
Step Six: Your Goods Arrive in the UK
On arrival in the UK, the container is taken off the ship and moved to a local warehouse. Here, your items are unpacked.
Shippo declares your items to UK customs., and you pay your duty, VAT and freight invoice.
Step Seven: Your Goods Are Delivered
Once your goods have been cleared and released, we’ll contact you to arrange delivery to your door. This can be tailored to your requirements, for example, if your business location requires a small truck or if you need a tail lift or a specific time slot for the delivery.
You’re then free to unload your goods from the truck and use, store, sell or enjoy them as you wish!
LCL Shipping For Small Businesses With Shippo
We hope this step by step guide to LCL shipping for small businesses has helped to make the process clearer.
Shippo are LCL specialists and we pride ourselves on providing straightforward, economical and reliable shipping services to businesses of all sizes.
If you’re looking for shipping solutions for your small business or need shipping advice, get in touch to find out how we can help. Or if you’re ready to ship with us get a quote.