What Are "LCL (Less than Container Load)" and "Dead Freight"?
Publish Time: 2025-12-02 Origin: Site
In international trade, enterprises often fail to ship goods on time due to various reasons, thus having to bear the corresponding LCL dead freight. Critically, many shippers are not fully aware of these costs, making them hard to prevent.
Today, we’ll explore relevant knowledge about LCL dead freight in cargo transportation.
What Is LCL (Less than Container Load)?
LCL (Less than Container Load) refers to small-lot cargo that does not fill an entire container (20'/40'/45'). Typically, a consolidator collects such cargo separately, consolidates it at a container freight station (CFS) or inland depot, and then loads two or more lots into one container. The cargo is also unloaded and delivered separately at the destination CFS or inland depot.
For LCL cargo, the carrier is responsible for loading and unloading operations, and the related fees are still charged to the shipper. The carrier’s liability for LCL cargo is basically the same as that for traditional breakbulk shipping.
What Is LCL Dead Freight in Ocean Shipping?
During the export of LCL ocean shipping, if the shipper fails to ship the cargo on time due to their own reasons after 11:00 AM on the working day before the cut-off date (for documents and cargo), resulting in vacant space for the LCL company, the LCL company will charge the shipper a fee to compensate for this loss—this is LCL dead freight.
How Is Dead Freight Calculated?
Dead freight is calculated based on the cost of the vacant space. The specific formula is: Dead Freight = Booked Chargeable Cubic Meters × (Full Container Ocean Freight + Full Container Origin Port Fees) / Standard Cubic Meters
Note: Standard Cubic Meters: 25 m³/20' container, 50 m³/40' container, 60 m³/40'HQ container
Common Causes of Dead Freight and Prevention Measures
- Shipper fails to deliver cargo to the warehouse on time or cancels shipment temporarily without notifying the LCL company promptly Prevention: The freight forwarder should communicate regularly with the shipper before the cut-off date to provide timely updates. Inform the shipper of their obligation to notify of any changes; otherwise, dead freight will be incurred.
- Significant overloading, underloading, or overweight of the cargo Prevention: The freight forwarder should require the shipper to ensure the booking order aligns as closely as possible with the actual cargo. Any changes must be reported promptly.
- Cargo is deemed unshippable due to its inherent characteristics or specifications (e.g., liquids, dangerous goods, oversized/overweight items) after being delivered to the warehouse Prevention: The freight forwarder should inform the shipper that liquids, dangerous goods, or semi-dangerous goods are not accepted. Oversized/overweight items must be confirmed in advance.
- Customs inspection delays shipment Prevention: The freight forwarder should require the shipper to ensure consistency between documents, and between documents and cargo. If customs has questions, the shipper should cooperate with the forwarder’s customs broker to provide clear and timely responses, and comply with customs requirements to ensure timely shipment.
In summary, the most important prevention for LCL dead freight is close and effective communication between the shipper and the freight forwarder. Meanwhile, the forwarder should fulfill their duties to resolve issues promptly, and the shipper should trust the forwarder and maintain transparency.