What does LCL and FCL mean?
Less than Container Load (LCL) and Full Container Load (FCL) are two terms commonly used in the shipping industry.
LCL refers to goods that are smaller than a full box. When you ship LCL, you share container space with other shippers. Your cargo is combined with other cargo to fill a container, reducing shipping costs for small shipments.
FCL, on the other hand, refers to Full Container Load. When you choose a full container load, you rent a complete container for your own exclusive use. You can load your own goods into the container until it is full.
How do FCL and LCL work?
FCL and LCL are two different shipping methods. The first involves leasing a complete container for a single shipper, while the second involves consolidating cargo from multiple shippers into a single container. Let’s see how they work:
How does FCL shipping work?
When working with FCL, the buyer rents the entire container space for a fixed price. In addition to the fixed cost of ocean freight, the buyer must also consider certain additional fixed costs, such as handling and chassis fees.
As with commercial air travel, shipping lines often modify rates based on trip demand, so it’s a good idea to check rates based on when and where the container will be transported.How does LCL shipping work?
In LCL shipping, different shippers share a container. When the quantity of goods is not sufficient to fill an entire container, LCL shipping is often cheaper because the cost of shipping the entire container is spread. When comparing the CBM costs of LCL and FCL shipping, LCL will be higher, but the total price will tend to be lower.
What is the difference between FCL and LCL transportation?
The main difference between FCL and LCL is that the buyer shares the space within the container in LCL shipping rather than leasing the entire container space under an FCL agreement.
What are the advantages and disadvantages of FCL and LCL transportation?
FCL and LCL are two different ways of shipping goods by sea. Each of these methods has unique advantages and disadvantages:
What are the advantages of FCL shipping?
Cost-Effectiveness: FCL shipments have a flat rate for the entire container, resulting in a lower cost per cubic meter (cbm) compared to LCL shipments, where you pay based on the area you use.
Faster shipping times: Due to the streamlined process, FCL shipments often arrive several days earlier than LCL shipments. LCL shipments involve additional loading and unloading steps because they combine multiple shipments. If you have a tight delivery deadline, choosing full container shipping can help ensure timely delivery.
Reduced Damage: When using FCL shipping, only you and your supplier handle the shipment, reducing the risk of damage. Containers are loaded and sealed by your supplier, ensuring the goods remain intact during transportation. This is especially beneficial for delicate items.
What are the disadvantages of FCL shipping?
Higher Cost: One of the disadvantages of using an FCL container is that you are responsible for paying the full cost of the container, regardless of whether the container is fully utilized. This can result in higher charges, especially if you don’t have enough cargo to fill an entire container.
Not suitable for small packages: FCL is usually more suitable for importers and exporters with larger volumes of goods. If your shipment or package is smaller, FCL shipping may not be the best option.
What are the advantages of LCL shipping?
Cost Savings: One of the advantages of shipping products via LCL is that you benefit from cost savings. Since you share the container with other suppliers, you can spread the shipping costs among all parties involved. This can be particularly advantageous if your shipments are smaller, as you only pay for the space you use in the container.
Reduced Inventory Costs: The advantage of LCL is that it reduces the need to maintain large inventories of products. LCL shipping gives you the flexibility to ship smaller shipments more frequently. This allows you to manage your inventory more efficiently and avoid the fees associated with storing excess inventory. By shipping smaller quantities as needed, you can optimize inventory levels and minimize shipping costs.
What are the disadvantages of FCL shipping?
Higher cost per cubic meter: The cost per cubic meter of LCL shipping is usually higher compared to FCL shipping because the container space is shared by multiple goods, resulting in a relatively higher cost per unit volume.
Potential Customs Delays: Because containers contain various LCL shipments from different suppliers, customs authorities may need to inspect individual items or specific items within the container. These additional customs steps may cause delays throughout the shipping process, which may impact delivery times for all LCL products within the container.
Increased handling risk: LCL shipping involves additional stages of handling, increasing the potential risk of damage or loss during unloading and transshipment, especially for fragile or delicate goods.
Difference Between FCL And LCL
How to choose between FCL VS LCL
Depending on your event, FCL or LCL may be more beneficial to you. Let’s see which of the following shipping methods is best for you:
Is FCL shipping right for my business?
FCL Image If your business involves frequent shipments and expects to transport large quantities of goods over 15 cubic meters, FCL shipping is suitable for your business. FCL shipping is usually the most cost-effective sea freight option. By utilizing the entire container capacity or filling it fully, you benefit from economies of scale. This allows the use of fewer containers to transport greater quantities of product, resulting in potential cost savings.
Additionally, if your supplier requires expedited shipping or time-sensitive deliveries, FCL shipping proves to be an ideal option. Unlike LCL (less than box load) shipping, where goods from multiple suppliers are consolidated and unpacked at various ports, FCL shipping follows a more direct route. Containers are unloaded from the ship and transported directly to their final destination, reducing overall shipping time.
Additionally, it is important to consider the nature of the goods you intend to transport. Full boxes are particularly suitable for handling delicate and high-value items. Dedicated routes for containers and a single consignee reduce the chance of damage, theft or loss during transportation.
Is LCL suitable for my business?
LCL Image Container Firstly, if your shipment is relatively small, typically less than 15 cubic meters (CBM), LCL offers a cost-effective solution. This is particularly advantageous if your cargo weighs less than 1 cubic meter but exceeds 150 kilograms.
Additionally, if your business involves splitting goods to multiple destinations, or if you need flexibility in shipping to different locations, LCL shipping is highly recommended. It allows you to split your shipment instead of sending multiple complete containers, which is beneficial when shipping to multiple Amazon FBA locations or 3PLs. LCL allows you to optimize your logistics by shipping goods to different ports based on specific delivery locations.
With these factors in mind, if you frequently handle smaller shipments, need a cost-effective solution, and need the flexibility to ship to multiple destinations, LCL may be the best option for your business. Assessing your specific needs and evaluating the benefits of LCL will help determine if it fits your business needs.
What’s FCL And LCL Transportation From China To The US
The Cost Of International Shipping LCL And FCL
The difference between FCL VS LCL and how to choose guide
Let’s take a closer look at the differences between the two shipping methods: FCL and LCL:
Shipment’s Volume
The table below highlights the differences in shipping volume between FCL and LCL :
| Criteria | FCL | LCL |
|---|---|---|
| Shipment’s volume | Here are the common container sizes for FCL shipments and their approximate capacities: – 20′ container: approximately 33 CBM – 40′ container: approximately 67.5 CBM – 40′ HQ container: approximately 76 CBM FCL can be used for any shipment, regardless of volume. However, it is recommended to book a full container if the total load occupies 15 CBM or more. | LCL can accommodate shipments as small as 1 CBM, with a minimum chargeable volume of 1 CBM . However, it is advisable to explore Air freight for shipments less than 1 CBM and with a chargeable weight of less than 200kg.For shipments with a volume of less than 15 CBM, LCL is an ideal choice. |
You may want to know the details : Guide To The Differences Between 20ft, 40ft And 40ft HC Containers
Shipment’s Weight
The following table shows the differences in shipping weights between FCL and LCL:
| Criteria | FCL | LCL |
|---|---|---|
| Shipment’s weight | It’s important to be aware of the maximum allowable weight for each container size. These weight restrictions are typically indicated on the container itself for easy reference. However, different countries may have specific regulations regarding maximum loads.Here are the maximum payload weights for common container sizes: – 20′ container: Up to 18.6 tons – 40′ and 40′ HC containers: Up to 28.6 tons The maximum weight per cubic meter (CBM) is 1 ton or 1,000 kg. If the shipment exceeds this limit, the chargeable weight is based on the gross weight. For example, a 1 CBM load weighing 1,300 kg would be charged as 1.3 CBM. | In the case of small shipments below 1 CBM but weighing more than 150 kg, LCL can offer a more cost-effective solution compared to air freight. Airlines calculate the chargeable weight based on either the gross weight or the volumetric weight, whichever is higher. For instance, a 0.8 CBM shipment with a gross weight of 300 kg may have a volumetric weight of 133 kg. However, regardless of the actual space occupied, airlines charge based on the gross weight of 300 kg for freight purposes. |
Freight Cost
The table below shows the variations in freight costs between FCL and LCL:
| Criteria | FCL | LCL |
|---|---|---|
| Freight cost | FCL can be cheaper for shipments with a volume of around 15 CBM. There is no specific volume when an FCL is less expensive, since CBM rates differ depending on the route.The price per CBM of the container (maximum load divided by the container cost for the ocean freight) is not always lower than LCL. However, the overall cost for a full container load can be less expensive since the local charges for an FCL is a fixed rate per container. | In LCL shipping, smaller loads below 15 CBM generally have lower costs, while larger loads exceeding 15 CBM can potentially result in higher overall expenses depending on the chosen route. Local fees typically surpass those for full container loads (FCL). If the shipment is around 2 CBM more or less than 15 CBM, it is advisable to consider the full container load option. |
Transit time
The following table compares transit times between FCL and LCL:
| Criteria | FCL | LCL |
|---|---|---|
| Transit time | The transit time for FCL shipments can vary but typically ranges from a few days to a few weeks. The overall transit time is typically shorter for FCL shipments as the containers are directly unloaded from the vessel and transported to the final destination. | LCL shipments generally take at least four days or more compared to FCL. This longer duration is primarily due to the additional time required for unloading, sorting, and deconsolidation of multiple consignments. Moreover, if a single consignment within the same LCL container is selected for customs inspection, the entire container will be placed on hold by customs, further adding to the transit time. |
Security and Damages
The table below examines the security aspects and damage risks associated with FCL and LCL:
| Criteria | FCL | LCL |
|---|---|---|
| Security and damages | There is a lower risk of the cargo getting damaged, stolen, or lost because the container travels on a direct route with a single consignee. Insurance and container loading inspections are also available as an extra layer of protection. | There’s a higher risk for damages, theft, or loss since the container is shared with other shipments. Freight insurance is available for an extra layer of protection for the buyer. |
Customs Clearance and Customs Exam
Both LCL and FCL shipments go through the same customs clearance process. The following table presents the differences in terms of customs clearance and customs inspection between FCL and LCL:
| Criteria | FCL | LCL |
|---|---|---|
| Custom clearance and customs exam | Customs inspections of containers are conducted randomly, which means that any shipment, regardless of consistency in product and route, can be subject to examination. In such cases, it is the buyer who bears the costs associated with the customs examination, including port and warehousing fees. It is wise to always consider the possibility of incurring these examination-related expenses when planning and arranging shipments. | In LCL shipments, there is a potential challenge if one consignment within the container triggers a customs examination, as the entire container will need to undergo the examination. This can range from a simple X-Ray scan to a more thorough CET (Contraband Enforcement Team) examination. It’s worth mentioning that the likelihood of examination increases with the number of consignees sharing the container.The cost of the customs examination, as well as any associated warehousing and port fees, will be divided among all the consignees who are utilizing the container. This ensures a fair distribution of the expenses. |
Traceability
The table below highlights the levels of traceability offered by FCL and LCL:
| Criteria | FCL | LCL |
|---|---|---|
| Traceability | Tracking for FCL and LCL shipments is similar, where you can track either the vessel or the container’s location using the information from the House Bill of Lading. However, FCL is generally easier to track as the full container is transported under one consignee. Your China freight forwarder can provide you with a shipping plan estimate for better visibility. | While tracking the vessel and container using the information from the Bill of Lading is possible, it may not provide accurate updates once the container reaches the port or during cargo unloading due to multiple handlers. In such cases, it is advisable to consult your freight forwarder for more detailed information. |
Split Shipment
The following table compares the split shipment possibilities between FCL and LCL:
| Criteria | FCL | LCL |
|---|---|---|
| Split shipment | It is important to consider the option of splitting your shipment under an FCL agreement. However, it is crucial to thoroughly assess the available options and determine the most cost-effective approach. While FCL containers do not require transportation to a warehouse, splitting the shipment may involve additional steps such as warehousing, labeling, sorting, loading, unloading, and delivery, which can incur extra fees. To avoid unexpected expenses, it is highly recommended to consult with your freight forwarder to identify the optimal route and avoid unnecessary costs. | Splitting shipments for delivery to different locations is more feasible with LCL shipments, as the full container is sent to a warehouse for sorting. If you have multiple destinations that are far apart, LCL might be a more suitable choice, considering the total volume of the shipment. By dividing the load, you can utilize different ports depending on the delivery locations. This flexibility can offer practical advantages for managing complex shipping requirements. |
