Why is LCL more expensive?

LCL transportation may appear more expensive compared to other transportation methods, mainly due to the combined influence of various factors. Here are some possible reasons for the high cost of LCL transportation:
Sorting and processing costs: LCL transportation usually involves consolidating multiple goods from different shipping points to a single consolidation point, and then sorting them and sending them to various destinations. This involves more complex logistics and higher labor costs, which may ultimately be passed on to customers.
Low space utilization: LCL transportation often requires mixing goods from different customers in the same container to fully utilize space. However, this may result in less compact cargo placement and waste of container space. This inefficient space utilization may lead to an increase in transportation costs per unit of goods.
Customized service requirements: Some customers may have customized requirements for special services during transportation, such as special packaging, insurance, or rapid transportation. These additional services usually lead to an increase in LCL transportation costs.
Complex transportation network: LCL transportation may involve multiple transportation nodes and transfer stations, especially in international transportation. This makes the entire transportation network larger and more complex, increasing the difficulty of management and coordination, while also increasing costs.
Risk management cost: Due to the fact that LCL transportation involves the transportation of goods from multiple shippers in the same container, there is a risk of mixed loading of goods. To prevent loss and confusion of goods, additional risk management measures need to be taken, which may also increase overall transportation costs.
Timeliness and flexibility: Some customers have strict requirements for the arrival time of goods, and LCL transportation is often affected by multiple factors, such as transit time, customs clearance time, etc. In order to provide higher timeliness and flexibility, transportation companies may need to invest more resources, thereby increasing costs.
Investment in environmental protection and sustainability: In recent years, there has been an increasing focus on reducing the impact of transportation on the environment. Some transportation companies may invest in more environmentally friendly and sustainable modes of transportation, which may lead to an increase in transportation costs.