The less-than-container-load (LCL) industry is a crucial segment of global shipping, facilitating the transportation of smaller cargo volumes by consolidating multiple shipments into a single container. LCL shipping supports global trade by maximizing container space utilization and reducing transportation costs for shippers who do not have enough cargo to justify a full container load.
LCL in shipping & Logistics Industries
The term LCL (Less Than Container Load) is defined as the the transportation of small ocean-freight shipments that do not require a full container’s capacity. Hence, an LCL container is also known as a ‘consolidated container.
This allows businesses, especially small and medium-sized enterprises (SMEs), to benefit from international shipping without needing to fill an entire container, making it a cost-effective and flexible option.
Key markets for LCL shipping include Asia, North America, and Europe, with major routes such as Asia-North America and Asia-Europe playing pivotal roles in the industry.
The LCL industry has been experiencing significant growth, driven by the rise in global trade and the increasing demand for efficient shipping solutions. Intra-Asia trade is the busiest route, handling approximately 43.5 million twenty-foot equivalent units (TEUs) annually, which constitutes about 25% of the world’s sea trade.
The less-than-container load (LCL) shipping market was valued at USD 9.41 billion in 2023 and is projected to reach USD 13.21 billion by 2030, with a compound annual growth rate (CAGR) of 5.06% from 2024 to 2030.
Whereas The full-container-load (FCL) shipping market was valued at USD 122.75 billion in 2023 and is projected to reach USD 143.50 billion by 2030, growing at a compound annual growth rate (CAGR) of 4.10% during the forecast period from 2024 to 2030.
Other major routes include Asia to North America with around 21.8 million TEUs (about 12.5% of global trade) and Asia to Europe with about 14.3 million TEUs annually (approximately 8.2% of global trade).
The busiest port in the world for LCL shipping is Shanghai, managing 43.5 million TEUs each year, followed by Singapore with 36.6 million TEUs. Shanghai’s port alone handles roughly 10% of the world’s total container traffic.
- Market Coverage: The leading players in the LCL industry collectively cover more than 90% of the global trade routes, offering extensive connectivity and service options for shippers worldwide.
- Revenue Contribution: These major players account for a significant portion of the global LCL market’s revenue, with combined annual revenues exceeding $50 billion.
- Global Presence: These companies operate in over 200 countries, ensuring comprehensive global coverage and facilitating international trade across all major economic regions.
Major LCL Shipping Routes by Annual TEUs:
- The Middle East-Asia route handles approximately 21 million TEUs annually.
- The Asia-North America route manages around 21.8 million TEUs annually.
- The Asia-Europe route processes about 14.3 million TEUs annually.
- The Intra-Asia route is the busiest, with around 43.5 million TEUs annually.
Busiest Ports by Annual TEUs:
- Shanghai is the busiest port, handling 43.5 million TEUs annually.
- Singapore follows with 36.6 million TEUs.
- Other major ports include Ningbo-Zhoushan (31.1 million TEUs), Shenzhen (27.7 million TEUs), Busan (22.7 million TEUs), Hong Kong (19.6 million TEUs), and Qingdao (21.0 million TEUs).
Major Players in the LCL (Less than Container load) Industry
The less-than-container-load (LCL) shipping industry is dominated by several key players who provide comprehensive logistics and transportation services worldwide. These companies leverage extensive global networks, advanced technology, and robust operational capabilities to offer efficient and reliable LCL solutions.
1. ECU Worldwide
ECU Worldwide, one of the largest less-than-container-load (LCL) shipping companies globally, boasts over 30 years of industry experience. Operating in 180 countries, it covers nearly 2,400 trade routes and manages 40,000 port pairs worldwide.
With a team of approximately 4,500 employees across more than 300 offices, ECU Worldwide achieved remarkable performance, witnessing sales growth of 20-40% in over 20 countries and doubling earnings from 2018 to 2021 during the pandemic.
2. DHL Global Forwarding
DHL Global Forwarding, a division of the Deutsche Post DHL Group, provides extensive less-than-container-load (LCL) services as part of its comprehensive global logistics solutions. Operating in more than 220 countries and territories worldwide,
DHL’s global forwarding and freight division reported revenues of approximately €13.2 billion in 2021. Holding a significant share of the global LCL market, DHL Global Forwarding maintains a strong presence in major trade lanes, particularly between Asia, Europe, and North America.
3. Kuehne + Nagel
Kuehne + Nagel is a global logistics company renowned for its strong operational capabilities and customer-focused solutions, offering comprehensive less-than-container-load (LCL) services. Operating in over 100 countries with more than 1,400 offices, Kuehne + Nagel’s sea freight division generated revenues of CHF 11.5 billion in 2021. As one of the top players in the LCL market, the company handles a significant volume of shipments, particularly between Asia and Europe.
4. Expeditors International
Expeditors International is a global logistics company renowned for its technological innovation and operational efficiency, offering a range of services including less-than-container-load (LCL) shipping. Operating in over 60 countries with more than 350 locations worldwide, Expeditors International reported net revenues of $4.3 billion in 2021. As a major player in the LCL industry, the company holds a particularly strong market presence in North America and Asia.
5. DB Schenker
DB Schenker, the logistics arm of Deutsche Bahn, offers extensive less-than-container-load (LCL) services as part of its comprehensive logistics solutions. Operating in more than 130 countries with over 2,000 locations, DB Schenker generated revenues of €18.3 billion in 2021. As a significant player in the global LCL market, the company maintains a strong presence in European and Asian trade lanes.
The dominance of these key players in the LCL industry underscores their critical role in supporting global trade, providing reliable and efficient logistics solutions, and driving the industry’s growth through innovation and extensive service networks.
Importance of Data in the LCL Industry
Data is essential in the less-than-container-load (LCL) shipping industry for efficiently managing container space, ensuring that operations are cost-effective, and maximizing the utilization of available resources. Here’s how data contributes to these goals:
1. Optimization of Cargo Placement:
Load Planning Algorithms: Advanced data algorithms can analyze cargo dimensions, weight, and type to create optimal loading plans. These algorithms ensure that containers are packed efficiently, reducing wasted space and ensuring that the cargo is stable during transit.
3D Visualization Tools: Data-driven 3D visualization tools allow logistics planners to see the optimal arrangement of cargo within a container. This helps in making real-time adjustments and ensures that every inch of the container is utilized effectively.
2. Forecasting and Demand Planning:
Historical Data Analysis: By analyzing historical shipment data, companies can forecast demand for container space more accurately. For example, a company like DHL Global Forwarding, with extensive global operations, uses data to predict peak times and adjust their capacity accordingly.
Demand Trends: Understanding demand trends allows logistics providers to anticipate space requirements and adjust their inventory management. This ensures that they have the right amount of space available to meet customer needs without overcommitting resources.
3. Real-Time Tracking and Adjustment
IoT and Sensor Data: Internet of Things (IoT) devices and sensors provide real-time data on container space usage. This data helps in tracking the loading process and making adjustments on the fly to optimize space utilization.
Dynamic Reallocation: Real-time data allows for dynamic reallocation of space based on changing conditions. If some shipments are delayed or canceled, the space can be reallocated efficiently, ensuring maximum usage of available container space.
4. Enhanced Coordination and Collaboration
Integrated Data Systems: Integrated data systems enable seamless communication between different stakeholders involved in the LCL shipping process. For instance, Kuehne + Nagel, operating in over 100 countries, uses integrated data systems to coordinate between shippers, carriers, and warehouse operators, ensuring optimal space utilization.
Collaborative Platforms: Data-driven collaborative platforms allow multiple shippers to share container space efficiently. By matching partial loads from different customers, companies can ensure that containers are filled to capacity, reducing costs and improving efficiency.
5. Predictive Analytics for Space Utilization
Machine Learning Models: Predictive analytics and machine learning models analyze past shipment patterns to predict future space requirements. These models help in planning and allocating container space more effectively, ensuring that space is neither underutilized nor overcommitted.
Optimization Software: Specialized optimization software uses data to continuously improve the allocation of space. This software considers factors like cargo type, destination, and shipment urgency to make the best use of available space.
6. Cost Reduction and Efficiency
Minimizing Empty Space: By optimizing space usage, companies can reduce the amount of empty space in containers, which translates to cost savings. For example, SCIKIQ’s data solutions helped ECU Worldwide enhance their load planning, resulting in better space utilization and reduced shipping costs.
Improved Load Factor: A higher load factor, achieved through efficient space management, reduces the number of containers needed, lowering transportation costs and increasing profitability.
Effective data management is crucial for optimizing container space in the LCL industry. By leveraging advanced data analytics, real-time tracking, integrated systems, and predictive models, logistics companies can ensure that containers are packed efficiently, reducing costs and improving operational efficiency. The strategic use of data enables companies to meet customer demands more effectively, enhance coordination among stakeholders, and maximize the utilization of available resources, leading to a more competitive and sustainable LCL shipping industry.
How Data is Managed in the LCL Industry
Data management in the less-than-container-load (LCL) industry involves several sophisticated processes and technologies to ensure efficient operations, accurate forecasting, and optimal space utilization. Here’s an overview of what needs to be done before data is managed for reporting and Dashboaring for real time analytics for Logistics company.
1. Data Integration and Consolidation
Integration of Disparate Sources: LCL companies consolidate data from multiple sources, including booking systems, customer databases, and shipment tracking systems, into a unified platform. This integration eliminates data silos and ensures consistency.
Centralized Data Repositories: Establishing centralized data lakes or warehouses where all operational data is stored allows for easy access and comprehensive analysis. For example, SCIKIQ helped ECU Worldwide create a centralized data lake to streamline their data management.
2. Advanced Analytics and Algorithms
Predictive Analytics: Machine learning models and predictive analytics tools analyze historical shipment data to forecast demand, optimize routes, and improve load planning. These tools help in anticipating future needs and adjusting strategies accordingly.
Optimization Algorithms: Algorithms designed to maximize container space utilization by considering cargo dimensions, weight, and type. These algorithms ensure efficient packing and minimize empty space within containers.
3. Real-Time Data Tracking:
IoT and Sensor Technology: Internet of Things (IoT) devices and sensors provide real-time tracking of containers and shipments. This real-time data allows companies to monitor the status of their cargo, track its location, and make real-time adjustments to optimize space usage.
Dynamic Reallocation: Real-time data enables dynamic reallocation of space based on current conditions, such as shipment delays or cancellations, ensuring maximum utilization of available container space.
4. Quality Checks and Data Cleansing
Rigorous Quality Assurance: Implementing stringent data quality checks to ensure that the data is accurate, reliable, and free from inconsistencies. This step is crucial for maintaining the integrity of data-driven decisions.
Data Cleansing: Regularly cleaning and organizing data to remove duplicates, correct errors, and standardize formats, making it suitable for analysis and reporting.
5. Dashboard and Reporting Tools
Comprehensive Dashboards: Developing dashboards that provide real-time insights into key performance indicators (KPIs) and other critical metrics. These dashboards help companies monitor performance, identify inefficiencies, and make informed decisions.
Automated Reporting: Automating the generation of reports to provide timely and accurate information to stakeholders, reducing the reliance on manual data extraction and minimizing errors.
6. Collaborative Platforms and Integration
Integrated Systems: Utilizing integrated systems to ensure seamless communication and data sharing among different stakeholders, including shippers, carriers, and warehouse operators. This integration enhances coordination and efficiency.
Collaborative Platforms: Implementing collaborative platforms that allow multiple shippers to share container space efficiently, matching partial loads from different customers to fill containers to capacity.
7. Regulatory Compliance and Security
Data Security Measures: Implementing robust data security measures to protect sensitive information from breaches and unauthorized access. This includes encryption, access controls, and regular security audits.
Regulatory Compliance: Ensuring compliance with international data protection regulations, such as GDPR, to maintain the privacy and security of customer data.
Overall, efficient data management in the LCL industry enables companies to optimize operations, improve customer service, and maintain a competitive edge in the global logistics market.
How SCIKIQ is well positioned to bring the best for LCL Players.
At SCIKIQ, we have partnered with some of the biggest names in the supply chain industry, giving us unique insights into how data and business analytics can help organizations thrive. With our supply chain control tower solution, you can gain real-time visibility into your operations, optimize your processes, and make data-driven decisions that drive profits. Let us help you take your supply chain to the next level.
Challenges in the Logistics & LCL Industry
Supply chains have a huge impact on company profits, so optimization and cost reduction is always valuable. At 40% Daily performance as a KPI has the highest impact on the organisation profitability.
- 69% of companies do not have total visibility.
- Only 22% of companies have a proactive supply chain network.
- 67.4% of supply chain managers use Excel spreadsheets as a management tool.
- Supply chain disruptions can cause a massive 62% loss in finances.
SCIKIQ Control Tower
- SCIKIQ supply chain control tower is a connected, customized dashboard of data of critical business KPIs, and significant events occurring throughout the organization. Logistics Control Tower allows you to gather real-time valuable intelligence, minimize or eliminate manual processes, and break down data silos so that business executives can make decisions quickly for the business.
- Improve profitability, have a better view of daily operations, accelerate sales and be proficient in predicting disruptions in almost all significant business areas.
- A supply chain control tower enables supply chain organizations to completely understand, prioritize and resolve critical issues in real time. SCIKIQ Supply chain control Tower enables organizations to monitor and improve key performance metrics and how business is getting impacted on a day-to-day basis.
Improving Supply chain Profitability & Other KPIs
There is an urgent need for workable solutions given the expanding list of difficulties the logistics sector faces. Fortunately, there are remedies accessible.
The majority of current problems can be resolved by digitization and collaborative logistics, which also makes it easier for businesses to plan, manage, and keep an eye on the flow of goods. Listed below are some of the most important KPIs
SCIKIQ has demonstrated its expertise by collaborating with one of the largest players in the logistics industry. This partnership highlights SCIKIQ’s ability to enhance data management practices, improve operational efficiency, and drive significant business growth.
Profitability
- Trade lane
- Customer level
- Organization-wise (Entity, office etc)
Business performance
- TYield (E2E)
- Booking
- Conversions
Customer analytics
- Profitability
- Retention
- New Accounts
- Receivables
- Pre-sales
Finance
- Operational Pnl
- Financial Pnl
- AR/AP Analysis
Sales Analytics
- Conversions/bookings
- Revenue Trends
- Sales Quota management
Operations
- Lost, New, Active
- Utilizations
- Detailed view
- Gross profit
SCIKIQ Case study with one of the market leaders in LCL Logistics segment.
- Enhance Sales: Aim to boost sales by 20% and productivity by 1.5 times.
- Digital Enablement: Increase by 25%.
- Upfront Costs: Provide traffic and tariff costs across 65+ countries.
Pain Points:
- No single source of truth.
- Data primarily used for operational reports.
- Reliance on manual methods for tracking profitability, business performance, and operations.
Scale of Complexity
- Operating in 75+ countries with multiple clusters.
- Involves 3 product lines, 6 data centers, and 40 non-standardized sources.
SCIKIQ’s Deployment
- Supply Chain Control Tower: Improved profitability and daily operations, accelerated sales, and predicted disruptions.
- Data Management: Managed 100+ daily schedules, processing 300K records daily, integrated across 30 systems feeding 100+ Power BI reports.
Impact and Benefits
- Operational Efficiency: 30% reduction in processing time.
- Sales Growth: 20-40% increase across 20+ countries.
- Customer Adoption: 25% increase with enhanced digital platform.
- Productivity: 150% boost with new sales app.
- Improved Metrics: Profitability, finance, operation, customer analytics, sales analytics, and business performance.
Have a look at the detailed case study here. https://scikiq.com/blog/revolutionising-data-reporting-dashboards-for-a-global-logistics-leader/
Discover how SCIKIQ can revolutionize your logistics operations with cutting-edge data solutions. Our advanced data management and analytics tools provide real-time insights, ensuring efficient operations and cost savings. Experience enhanced coordination and increased profitability with SCIKIQ’s comprehensive suite of logistics solutions.
Connect with us and see how we can manage Data and Analytics for Logistics Sector and LCL and other segments.