What is LCL?
LCL (Less than Container Load) is a type of ocean freight where your goods share a shipping container with cargo from other companies. You only pay for the space your goods occupy, measured in cubic metres (CBM), rather than renting an entire container. A freight forwarder groups multiple LCL shipments together into a single full container, ships them, then separates them again at the destination. LCL is the standard choice for UK importers and exporters who do not have enough cargo to fill a whole container.
If you have just received a quote showing “LCL” and you are not sure what it means, this article explains it in plain English, from how consolidation works to what you will pay in pounds and pence.
LCL is one of the most useful tools available to UK small and medium businesses importing from Asia, Europe, and beyond. It makes ocean freight accessible when your shipment is too small for a full container. But LCL also comes with specific costs, risks, and timings that you need to understand before you book. This article covers all of it.
LCL stands for Less than Container Load. It means your shipment does not fill an entire 20-foot or 40-foot container on its own.
Instead of paying for an entire container, you pay only for the space your cargo occupies inside a shared container. The freight forwarder or shipping line consolidates your goods with cargo from several other shippers, sometimes dozens, into one full container.
This is different from FCL (Full Container Load), where one shipper books an entire container for their own exclusive use.
LCL is sometimes called groupage or consolidated freight. These terms all mean the same thing: your cargo travels alongside other companies’ goods, sharing the cost of the container.
LCL is an ocean freight service. It is not used for air freight, air cargo has its own pricing model based on chargeable weight.
LCL is most commonly used by:
If your shipment is below roughly 12–15 cubic metres (CBM), LCL is almost always cheaper than booking a full container.
LCL involves more steps than a standard FCL shipment because your cargo has to be grouped with other cargo at origin, and then separated again at destination. Here is the full process.
Step 1, You book with a freight forwarder.
You contact a freight forwarder and provide your cargo details: dimensions, weight, commodity, and the ports of origin and destination. The forwarder gives you an LCL quote based on your CBM volume. You confirm the booking.
Step 2: Goods are delivered to the origin CFS.
CFS stands for Container Freight Station. This is a warehouse at or near the origin port where LCL cargo is collected before it is loaded into a container. Your supplier delivers the goods to the CFS. The forwarder checks the cargo, inspects it against the packing list, and prepares it for loading.
Step 3: Consolidation (stuffing).
At the CFS, the freight forwarder’s consolidation team loads multiple LCL shipments from different customers into a single container. This process is called stuffing. Once full, the container is sealed and moved to the port terminal.
Step 4: Export customs clearance.
Export customs clearance is completed at the origin country. The relevant export documents are submitted, and the container is cleared for loading onto a vessel.
Step 5: Ocean transit.
The container is loaded onto a ship and begins its voyage. Depending on the origin port and the UK destination port, transit times vary majorly, typically 3–6 weeks from Asia, or 5–10 days from Europe.
Step 6: Arrival at the UK destination port.
The container arrives at a UK port, commonly Felixstowe, Southampton, London Gateway, or Tilbury. The container is unloaded from the vessel and moved to the destination CFS.
Step 7: Deconsolidation (de-stuffing).
At the destination CFS, the container is opened and all LCL shipments inside it are separated. This is called de-stuffing or deconsolidation. Each shipment is identified, checked, and set aside for its respective consignee.
Step 8: UK customs clearance.
Your freight forwarder or customs broker submits your import customs declaration through the UK Customs Declaration Service (CDS). You need a valid UK EORI number for this. Import duty and UK VAT are calculated and collected.
Step 9: Delivery to your premises.
Once customs is cleared and any charges are paid, the freight forwarder arranges delivery to your warehouse, office, or specified delivery address.
The decision between LCL and FCL usually comes down to volume. As a general rule, LCL is the more cost-effective option when your shipment is below 12–15 CBM. Above that, FCL starts to become cheaper, even if you cannot fill the container completely.
Here is a side-by-side comparison of the two options.
| Factor | LCL | FCL |
|---|---|---|
| Minimum volume | No strict minimum (typically billed per CBM, min. charge 1 CBM) | Full 20ft container (~25 CBM usable) or 40ft (~55 CBM) |
| Cost for small shipments | Lower — you pay only for space used | Higher — full container cost regardless of how full it is |
| Cost for large shipments | Higher per CBM than FCL | Fixed cost becomes cheaper at higher volumes |
| Break-even point | LCL cheaper below ~12–15 CBM | FCL cheaper above ~12–15 CBM |
| Transit time | Longer — consolidation and deconsolidation add 3–5 days vs FCL | Faster — no consolidation delays |
| Damage risk | Higher — cargo is handled more often (stuffing, de-stuffing) | Lower — container sealed at origin and opened at destination |
| Cargo security | Moderate — container shared with other shippers | Higher — container is exclusively yours |
| Flexibility | High — easier to ship smaller, more frequent orders | Lower — need enough volume to justify a container |
| Suitable for fragile goods | Less ideal — more handling events | More suitable — less handling |
| Scheduling | Dependent on consolidation schedule | More flexible departure options |
The practical break-even point where FCL becomes cheaper than LCL is around 12–15 CBM. This is not a fixed number, it depends on freight rates at the time, the route, and the forwarder you use. But it is a reliable rule of thumb to start with.
If your shipment is, say, 10 CBM, LCL will almost certainly save you money over an FCL booking. If your shipment is 18 CBM, it is worth getting both an LCL and an FCL quote and comparing them directly.
LCL is not just an ocean freight charge. There are several component charges involved in an LCL shipment, and understanding what each one covers helps you avoid surprises when the final invoice arrives.
Ocean freight charge. This is the base charge for the sea voyage. It is priced per CBM (or per tonne, see the next section). This charge covers the cost of carrying your cargo from origin port to destination port.
Origin CFS handling (origin stuffing charge). This covers the cost of receiving your cargo at the origin Container Freight Station, checking it, and loading it into the container alongside other LCL shipments. This is sometimes included in the freight rate, sometimes charged separately.
Destination CFS handling (destination de-stuffing charge). This covers the cost of unloading the container at the UK destination CFS, separating your cargo from other shipments, and making it available for collection or onward delivery. This charge appears on most UK LCL invoices.
Bill of Lading fee. A charge for issuing the House Bill of Lading (the LCL-specific transport document). This is typically £25–£60.
Documentation fee. Covers the cost of preparing export and import paperwork. Often £30–£80.
Customs clearance fee. Your UK customs broker charges a fee to submit your import declaration through CDS. Typically £60–£150 per declaration, depending on the complexity of the shipment.
UK import duty. Calculated as a percentage of the customs value of the goods. The rate depends on the commodity code (HS code) of your goods. You can find duty rates on the UK Global Tariff on GOV.UK.
UK import VAT. Charged at 20% on most goods, applied to the customs value plus duty plus freight costs.
Delivery (drayage). The cost of transporting your cargo from the destination CFS to your premises. Priced based on distance, weight, and volume.
Port terminal handling charges. Port-side charges applied by the terminal operator. These vary by port.
Carrier security surcharge and other surcharges. Fuel surcharges, peak season surcharges, and security fees are sometimes added. Always check the quote carefully.
LCL freight is priced using a system called W/M, Weight or Measure. This means the freight charge is calculated on whichever is greater: the actual weight of your cargo in tonnes, or the volume in cubic metres (CBM).
The rate is expressed as a price per CBM (or per revenue tonne).
Example: If the LCL rate from Shanghai to Felixstowe is £45 per CBM, and your shipment is 3 CBM and 1.2 tonnes, the chargeable unit is 3 CBM (greater of the two), so the ocean freight charge is £45 × 3 = £135.
CBM is calculated by multiplying the length, width, and height of your cargo in metres.
CBM = Length (m) × Width (m) × Height (m)
If you have multiple cartons or pallets, add the CBM of each piece together.
Example: You have 10 cartons, each measuring 0.6m × 0.4m × 0.4m.
CBM per carton = 0.6 × 0.4 × 0.4 = 0.096 CBM
Total CBM = 0.096 × 10 = 0.96 CBM
Most forwarders apply a minimum charge of 1 CBM (sometimes 0.5 CBM for short routes). Even if your shipment is 0.3 CBM, you will be billed for 1 CBM.
This matters for very small shipments. A 0.2 CBM parcel that fits in a couple of boxes will still attract the 1 CBM minimum, so for genuinely tiny shipments, courier services or air freight may actually be cheaper.
If your cargo is very light but bulky (low-density goods like foam, packaging, or soft furnishings), the volume measurement will be the chargeable basis. If your cargo is very dense (machinery, metals, tiles), the weight in tonnes may be higher than the CBM, and the freight charge will be based on tonnage instead.
LCL shipments take longer to reach their destination than equivalent FCL shipments on the same route. The reason is simple: your cargo has to be consolidated at origin and deconsolidated at destination, and that takes time.
A typical LCL shipment from China to the UK (Felixstowe or Southampton) takes around 35–45 days door to door. An equivalent FCL shipment on the same route often takes 28–35 days.
The key time additions in LCL are:
Here is a rough transit time comparison.
| Route | LCL Door-to-Door | FCL Door-to-Door |
|---|---|---|
| China (Shanghai) to UK (Felixstowe) | 35–45 days | 28–35 days |
| India (JNPT/Mumbai) to UK (Southampton) | 30–40 days | 25–35 days |
| Vietnam (Ho Chi Minh) to UK | 35–45 days | 30–38 days |
| Bangladesh (Chittagong) to UK | 35–45 days | 28–36 days |
| Germany (Hamburg) to UK (Felixstowe) | 10–14 days | 7–10 days |
| Netherlands (Rotterdam) to UK | 8–12 days | 5–8 days |
These are estimates. Actual transit times vary with the shipping line, the service level, port congestion, and seasonal factors. Always ask your forwarder for the current estimated transit time when you book.
Every LCL shipment that enters the UK is a separate customs entry. Even though your goods travel inside a shared container, your shipment is treated independently by UK Border Force and HMRC. There is no shared customs entry, each LCL consignee files their own declaration.
UK EORI number. An Economic Operators Registration and Identification (EORI) number is mandatory for anyone importing goods into the UK commercially. If you do not have one, register on GOV.UK, it is free and usually issued within three working days.
Commodity codes (HS codes). You need the correct 10-digit commodity code for each type of goods you are importing. The code determines the duty rate. Use the UK Trade Tariff on GOV.UK to look up codes.
Customs declaration via CDS. The UK Customs Declaration Service (CDS) replaced the old CHIEF system. Your customs broker will submit the import declaration through CDS on your behalf.
Commercial invoice. Must show the supplier name and address, buyer name and address, a detailed description of the goods, quantity, unit price, total value, and the currency.
Packing list. A document listing the exact contents of each package, carton count, dimensions, gross weight, and net weight.
Bill of Lading (House Bill of Lading for LCL). This is the transport document for the shipment. In LCL, you receive a House Bill of Lading (HBL) issued by the consolidating freight forwarder, rather than a Master Bill of Lading from the shipping line.
If you import regularly and want to defer duty payments (paying monthly rather than per shipment), you can apply for a Duty Deferment Account with HMRC. This requires a bank guarantee or a cash deposit. Many UK SME importers find this useful for managing cash flow.
Since Brexit, UK VAT-registered importers can use Postponed VAT Accounting (PVA). Instead of paying import VAT at the border and then reclaiming it, PVA lets you account for import VAT on your VAT return. This can majorly improve cash flow for regular LCL importers. You declare PVA on the customs declaration at the time of import.
Getting your documentation right is one of the most important things you can do to keep your LCL shipment moving smoothly. Missing or incorrect paperwork is the single most common cause of customs delays.
Here is a checklist of the documents typically required for a UK LCL import.
Commercial invoice. Issued by your overseas supplier. Must include: seller and buyer details, invoice number and date, description of goods (enough detail for customs purposes), quantity and unit price, total value and currency, country of origin, and Incoterms.
Packing list. A detailed breakdown of the contents of each package. Must match the commercial invoice in quantity and description.
House Bill of Lading (HBL). The LCL-specific transport document, issued by the consolidating forwarder. Contains the shipment reference, shipper and consignee details, vessel and voyage information, port of loading, port of discharge, and container number.
Proof of origin (if claiming preference). If your goods originate from a country with which the UK has a free trade agreement (FTA), you may be able to claim a reduced or zero duty rate. To do this, you need a valid proof of origin, this could be a supplier’s declaration on the invoice, a certificate of origin, or a REX statement (Registered Exporter), depending on the country and the FTA.
Dangerous goods declaration. Required if your goods are classified as dangerous goods under IMDG (International Maritime Dangerous Goods) code. Your supplier must provide this before the goods are accepted at the CFS.
Phytosanitary certificate or other regulatory documents. Required for certain goods, food, agricultural products, plants, and some materials with specific regulatory requirements. Check GOV.UK for the requirements that apply to your commodity.
Lower cost for small shipments. The most obvious advantage. You only pay for the space you use. A 3 CBM shipment pays for 3 CBM, not for an entire 20-foot container.
Access to ocean freight rates for smaller volumes. Without LCL, businesses with small orders would be forced into much more expensive air freight. LCL gives small UK importers access to ocean freight rates that were previously only available to large-volume shippers.
Cash flow friendly for growing businesses. LCL lets you import smaller, more frequent shipments rather than tying up large amounts of capital in a big FCL order. For a UK SME managing stock levels carefully, this can make a major difference to cash flow.
Test orders and samples. LCL is ideal for importing product samples or small trial orders before committing to a full container. You can test quality and market response with a modest initial import.
Regular, smaller replenishment shipments. Rather than importing six months of stock in one FCL hit, LCL lets you import more frequently in smaller quantities, reducing warehousing costs and the risk of being stuck with unsold stock.
No need to wait for a full container. You do not need to coordinate filling an entire container before your goods can ship. The forwarder handles consolidation with other customers’ cargo.
LCL is not the right solution for every shipment. There are genuine risks and downsides that you should understand before you book.
Higher damage risk. LCL cargo is handled more times than FCL cargo, at the origin CFS during stuffing, and again at the destination CFS during de-stuffing. Each handling event is an opportunity for damage. Fragile, breakable, or irregularly shaped cargo is at higher risk in LCL than in an FCL container.
Longer transit times. As covered in the transit time section, LCL adds 3–5 extra days compared to FCL on the same route, due to consolidation and deconsolidation. If your supply chain is time-sensitive, this matters.
More complex invoicing. An LCL invoice contains more line items than a simple FCL invoice, origin CFS charges, destination CFS charges, documentation fees, and other surcharges. Hidden or unexpected charges are a common complaint from first-time LCL users.
Contamination risk from other cargo. In rare cases, other shippers’ cargo in the same container can affect yours: for example, if another consignment leaks, smells strongly, or has a pest infestation. This risk is low but real.
No control over consolidation timing. The forwarder determines the consolidation schedule. If cargo volumes are low on a given week, your shipment may be delayed while the forwarder waits for enough cargo to fill a container.
Not cost-effective above 12–15 CBM. Once your shipment grows beyond about 12–15 CBM, LCL starts to become more expensive than booking a full 20-foot container. At that volume, you should get both quotes and compare.
Higher cost per CBM than FCL. On a per-CBM basis, LCL freight rates are higher than FCL rates. You are paying for the forwarder’s consolidation service, the CFS handling at both ends, and the added complexity of the shared container model.
Measuring cargo inaccurately. If you underestimate your CBM, you will receive a revised invoice at a higher cost once the goods are physically measured at the CFS. Always measure all cartons accurately and include pallet dimensions if the goods will be palletised. Give yourself a small margin of error, it is better to quote slightly over than to be surprised by a re-measurement surcharge.
Missing the CFS cut-off. LCL consolidations operate to a strict schedule. Missing the origin CFS cut-off means your goods miss that sailing and must wait for the next consolidation, which could be days or even a week later. Confirm the cut-off date and make sure your supplier delivers on time.
Not having a UK EORI number ready. If you do not have a UK EORI number, your goods will be held at the border. EORI registration is free and straightforward on GOV.UK, but it is not instant. Apply before you book your shipment, not after the goods arrive.
Using the wrong commodity code. An incorrect HS code can result in paying the wrong amount of duty, either too much (money wasted) or too little (an HMRC query, possible penalties). If you are unsure, ask your customs broker to help you classify the goods correctly.
Not getting cargo insurance. LCL cargo is not automatically insured beyond the carrier’s very limited liability (usually SDR 2 per kilo or similar). If your goods are damaged or lost, the recovery without insurance will be minimal. Always arrange cargo insurance for LCL shipments, the premium is typically 0.1–0.5% of the goods value.
Assuming the LCL quote is all-inclusive. Many LCL quotes cover only the ocean freight element. Destination CFS charges, port handling, customs clearance, duty, VAT, and delivery to your door are often additional. Ask your forwarder for a full, itemised, door-to-door cost before you book.
Not allowing enough time. Importing by LCL from Asia takes 6–8 weeks door to door as a realistic planning figure, once you include supplier lead time, CFS cut-offs, transit, deconsolidation, and customs clearance. Plan your stock ordering timelines accordingly.
Brexit introduced major changes to UK import procedures, and LCL importers need to be aware of the key requirements.
EORI number is mandatory. A UK EORI number (GB EORI) is required for all commercial imports. You cannot clear goods through UK customs without one. This applies to every LCL shipment regardless of value. If you are importing for the first time since Brexit, this is the first thing to sort.
Customs declarations are required for all goods. There is no longer a simplified low-value goods threshold for EU imports that bypasses customs. All commercial imports from the EU, and from everywhere else, require a full customs declaration through CDS. This includes LCL shipments from EU countries such as Germany, the Netherlands, Italy, and France.
Rules of origin matter for duty. The UK has trade agreements with many countries, including the EU (TCA), Japan, Australia, and others. To claim a reduced or zero duty rate under one of these agreements, your goods must meet the agreement’s rules of origin requirements, and you must have the correct proof of origin documentation. Your supplier needs to provide this, ask them before the goods ship, not after.
Import duty on EU goods. Since Brexit, goods imported from the EU that do not meet UK-EU Trade and Cooperation Agreement (TCA) rules of origin are subject to UK import duty. For many manufactured goods imported from EU-based suppliers who source materials from outside the EU, this is a real cost to factor in.
Postponed VAT Accounting (PVA) for VAT-registered businesses. If your business is VAT-registered in the UK, you can use PVA on all LCL imports. This is almost always beneficial, it eliminates the need to pay import VAT upfront and reclaim it later, improving your cash flow. Ensure your customs broker knows to apply PVA on your declarations.
Goods Vehicle Movement Service (GVMS) and entry requirements at ports. For shipments arriving by ferry from Europe (rather than by deep-sea container vessel), your haulier will need to use GVMS. This applies to LCL shipments from short-sea routes. Discuss this with your freight forwarder to make sure the port arrival process is correctly managed.
Here is a realistic scenario to show how LCL works and what it costs in practice.
The situation: A small UK clothing retailer. Maple & Thread Ltd, based in Bristol, is importing a sample order of 500 garments from a manufacturer in Guangzhou, China. They are testing a new product line before committing to a full container order.
The cargo details:
– 20 cartons, each measuring 0.6m × 0.4m × 0.5m
– Gross weight: 280 kg
– Total CBM: 20 × (0.6 × 0.4 × 0.5) = 20 × 0.12 = 2.4 CBM
– Goods value: £4,200 (on the commercial invoice)
Step 1: LCL freight quote from Guangzhou to Felixstowe.
Maple & Thread’s freight forwarder quotes the following:
| Charge | Basis | Amount |
|---|---|---|
| Ocean freight (LCL) | 2.4 CBM × £55/CBM | £132 |
| Origin CFS handling (Guangzhou) | Per CBM | £36 |
| Destination CFS handling (Felixstowe) | Per CBM | £55 |
| House Bill of Lading fee | Per shipment | £45 |
| Documentation fee | Per shipment | £60 |
| Port terminal handling (Felixstowe) | Per CBM | £22 |
| Total freight charges | £350 |
Step 2: UK customs clearance.
The customs broker charges £95 for the import declaration. Maple & Thread’s clothing attracts UK import duty at 12%. The customs value is the invoice value plus the freight cost: £4,200 + £350 = £4,550.
Maple & Thread is VAT-registered and uses Postponed VAT Accounting, so the £1,019 VAT does not need to be paid at the border, it is accounted for on their next VAT return. They do need to pay the £546 duty.
Step 3: Cargo insurance.
The forwarder arranges cargo insurance at 0.3% of the goods value: 0.3% × £4,200 = £12.60.
Step 4: Delivery from Felixstowe to Bristol.
A pallet delivery from Felixstowe to Bristol is quoted at £95.
Total landed cost summary:
| Item | Amount |
|---|---|
| Ocean freight and handling charges | £350 |
| Customs clearance fee | £95 |
| Import duty | £546 |
| Import VAT (deferred via PVA) | £1,019 |
| Cargo insurance | £13 |
| Delivery to Bristol | £95 |
| Total landed cost (excluding deferred VAT) | £1,099 |
Transit time: The forwarder confirms an estimated door-to-door transit of 38–42 days. Maple & Thread places the order and makes sure their supplier delivers to the Guangzhou CFS at least five days before the vessel cut-off.
The sample order arrives, the garments sell well, and Maple & Thread places a full FCL order for the next season.
What does LCL stand for?
LCL stands for Less than Container Load. It means your shipment does not fill a full shipping container, so it is grouped with other shippers’ cargo inside a shared container.
What is the minimum shipment size for LCL?
There is no strict minimum volume for LCL, but most freight forwarders apply a minimum charge of 1 CBM. Very small shipments (under 0.5 CBM) may be more economically sent by air freight or international courier, depending on the route and the goods.
What is CBM and how do I calculate it?
CBM stands for cubic metre. It is the standard unit for measuring LCL cargo volume. Calculate it by multiplying the length, width, and height of your cargo in metres. For multiple cartons, add the CBM of each carton together. Most freight forwarders will also physically measure your cargo at the CFS, so accuracy matters.
How long does LCL shipping take from China to the UK?
A realistic door-to-door estimate from China (Shanghai or Guangzhou) to a UK port (Felixstowe or Southampton) is 35–45 days. This includes time at the origin CFS, the ocean voyage (around 28–30 days), arrival at the UK CFS, deconsolidation, and customs clearance. Add a few extra days for delivery to your premises.
Do I need a customs broker for LCL imports?
You do not legally have to use a customs broker, but it is strongly advisable, especially if you are new to importing. Customs declarations submitted through CDS are complex, and errors can lead to delays, fines, or paying the wrong amount of duty. A good customs broker will also help you use Postponed VAT Accounting and claim any duty preference you may be entitled to.
Is LCL cargo insured automatically?
No. The shipping line and the forwarder have very limited liability, typically based on SDR (Special Drawing Rights) per kilogram, which usually works out to far less than the actual value of the goods. You should always arrange your own cargo insurance for LCL shipments. Ask your forwarder to quote you insurance when you book.
What is a House Bill of Lading in LCL?
A House Bill of Lading (HBL) is the transport document issued by the consolidating freight forwarder for your individual LCL shipment. It is different from the Master Bill of Lading (MBL), which is the document between the forwarder and the shipping line covering the whole container. For customs and banking purposes, your HBL is the key document, it names your company as the consignee and describes your specific cargo.
At what volume should I switch from LCL to FCL?
The general break-even point is around 12–15 CBM. If your shipment is close to this range, get quotes for both LCL and FCL and compare the full cost, including CFS handling, delivery, and customs for LCL, versus the FCL rate plus delivery. At 10 CBM, LCL is almost always cheaper. At 15 CBM or above, FCL typically wins.
LCL means your cargo shares a container with other shippers’ goods. You pay only for the space your shipment occupies, measured in CBM.
LCL is priced on W/M, whichever is greater, your cargo’s volume in CBM or its weight in tonnes. Most forwarders apply a minimum charge of 1 CBM.
The break-even point vs FCL is roughly 12–15 CBM. Below that, LCL is usually cheaper. Above it, a 20-foot FCL container becomes more cost-effective.
LCL takes longer than FCL: typically 3–5 days more, due to consolidation at origin and deconsolidation at destination. From Asia, allow 35–45 days door to door.
Every LCL shipment needs its own UK customs entry. You need a UK EORI number, correct commodity codes, a commercial invoice, packing list, and a House Bill of Lading.
Brexit changed things for UK importers. All imports, including from the EU, now require a customs declaration via CDS. Use Postponed VAT Accounting if you are VAT-registered.
Cargo insurance is not automatic. Arrange your own policy. The carrier’s liability is very limited and rarely covers the actual value of your goods.
Get a full, itemised quote. An LCL quote that shows only the ocean freight charge is incomplete. Ask for all charges to be shown: CFS handling (origin and destination), documentation, customs, duty, VAT, and delivery.
LCL is ideal for small orders, samples, and growing businesses that do not yet have the volume to justify a full container. It makes ocean freight accessible to UK SMEs at any scale.
This article is part of a learning path — return to explore more topics.
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