Introduction
When you are shipping internationally, a number of factors are to be considered to ensure an efficient delivery procedure. You need to carefully make decisions regarding the impact cost, delivery timelines, shipment tracking procedure, reliability, and more. Another option to be considered is whether you should go for FCL or LCL shipping.
What is Full Container Load (FCL) Shipping?
When you have a larger volume to ship, you may usually book an entire container to ship your goods, FCL or Full Container Load is the shipment mode where a single shipper sends the goods in one complete container. This container is completely sealed until it reaches its destination. FCL shipping is often preferred for large shipments where the volume or quantity of goods can fill an entire container.
What is Less than Container Load (LCL) Shipping?
No single shipper is involved in Less than Container Load (LCL). Not all businesses or shippers have a larger volume to send; some may only have small bundles or even one. In such cases, LCL shipment shines. Instead of giving one container to one shipper, goods from various shippers are collected and a container has shared shipment items from various skippers. This is a beneficial option for shippers sending lower volume as this would cost you less.
What are The Advantages of FCL?
- Cost-Effectiveness for Large Shipments
- A perfect option to choose if you are shipping a larger quantity. When you ship more, the total cost per unit reduces, and thus, costs for FCL shipping are quite lower than LCL if you are sending goods in bulk. So, in this scenario, FCL seems an economical option.
- Speed
- FCL shipments are for single shippers, so the hassle of consolidating goods and dividing them again is absent in this shipping mode. Thus, this makes FCL a faster shipment method than LCL.
- Security
- As we discussed above already, from the beginning till the destination, the container is well sealed, so security is top-notch in this case. The risks of damage or items being stolen are reduced.
- Flexibility in Packaging
- As the material goods are from a single shipper, you have complete control over the packaging of the items. You can pack the goods and arrange them as per your requirements.
- Reduced Handling
- Don’t worry about your goods being mishandled. During this shipment, you will have to go through just a few touchpoints so your package will be safe and secure the way it left.
Understanding “what is full container load shipping” highlights its advantages, especially when comparing FCL vs LCL shipping. For businesses dealing in large volumes, FCL can be a game-changer.
Disadvantages of FCL Container Shipping
Less Flexibility for Small Shipments: An FCL shipping arrangement requires locking in a complete vessel container even if the contents use only a small portion of its capacity which leads to both wasted storage space and inflated shipping expenses.
Higher Initial Cost: The complete cost to reserve an entire container presents significant tab for businesses operating with constrained budgets and performing few shipping orders.
Less Frequent Shipments: Companies need to accumulate enough cargo to use an entire container before shipping which limits their ability to transport cargo frequently.
Logistics and Storage Challenges: Managing full-sized shipping containers at ports becomes difficult because ports lack necessary space and equipment, and service infrastructure.
Underutilized Space: FCL shipping becomes less economical when business operations fail to use their full container capacity effectively.
What are The Advantages of LCL?
- Cost-effective for Small Shipments
- If your business does not require you to send larger volumes of shipment, then LCL is the option you must go for. It will cost you less if you have smaller shipments.
- Flexibility
- You can ship smaller loads without needing to wait until you have enough goods to fill an entire container.
- Sustainability
- LCL can also be a sustainable shipment option. Sharing container space optimizes resources and reduces the environmental impact of shipping.
- Scalability
- Businesses that have just started and do not need an entire container to ship goods can benefit from this.
Disadvantages of LCL Shipping
The flexible approach of LCL shipping delivers significant drawbacks that customers need to consider.
Longer Transit Times: The containerized shipment procedure of LCL needs combined loading at shipping points and separate unloading at delivery locations therefore it extends delivery times and creates possible delays.
Higher Risk of Damage: The process of sharing transportation space with multiple shippers raises the chances that cargo will get damaged or stolen or disappear at handling points particularly for goods that are sensitive to handling damage or high in market value. Complex Customs Clearance: The combination of multiple shipments into one container makes customs procedures more difficult and produces greater risks of both processing delays and documentation mistakes.
Less Cargo Security: When shipping via LCL methods users sacrifice some security measures because the cargo space is shared between multiple customers.
Potentially Higher Costs per Unit: The cost effectiveness of LCL shipments remains beneficial only for smaller quantities yet becomes uneconomical when your shipment volume surpasses moderate levels.
What are the Key Differences Between FCL and LCL?
| Key Aspect | FCL (Full Container Load) | LCL (Less than Container Load) |
| Definition | FCL means one shipper books an entire shipping container exclusively for their goods, without sharing space with others. | LCL means multiple shippers share space within a single shipping container, each paying only for the space used. |
| Shipment Volume | Ideal for larger cargo volumes (typically more than 15 cubic meters) sufficient to fully utilize container capacity. | Best suited for smaller cargo volumes (typically less than 15 cubic meters) that do not fill an entire container. |
| Cost | Charged at a fixed rate per container, making it economical when shipping larger quantities. | Charged based on cargo volume (per cubic meter or CBM) or weight, making it cost-effective for smaller shipments. |
| Transit Time | Usually faster since cargo is loaded at the origin and delivered directly without intermediate stops for consolidation. | Usually slower because cargo undergoes consolidation at departure and deconsolidation at the destination port. |
| Cargo Handling | Minimal handling involved, reducing the risk of damage. Goods remain sealed and secure from origin to destination. | Higher handling involved due to repeated loading/unloading at various points, increasing potential risk of damage or loss. |
| Security Level | Offers higher security because the container is exclusively used by one shipper and remains sealed throughout transit. | Relatively lower security as multiple cargoes share container space, increasing exposure to handling risks and potential theft. |
| Customs Clearance | Simpler and faster customs procedures due to single cargo documentation, reducing clearance delays. | Complex customs processes because of multiple shippers’ cargo in one container, potentially causing clearance delays. |
| Flexibility | Less flexible since the shipper must fill or pay for the entire container space, beneficial primarily for large, planned shipments. | Highly flexible, allowing shippers to send smaller, frequent shipments economically without committing to an entire container. |
1. FCL vs LCL Cost Difference
FCL Costs: Users of FCL pay a static container price which remains constant even if they fill their shipping containers partially. The shipping price becomes astonishingly affordable for large cargo volumes exceeding 15 cubic meters because each unit cost diminishes when shipment volumes increase.
LCL Costs: The cost of LCL shipping depends on the highest value between warehousing cargo through CBM measurement or weight value. The cost-per-unit rises excessively with increasing shipment size before FCL becomes more efficient than LCL for transportation.
LCL stands as the most suitable option for small-volume shipments in scenarios where full container purchases become uneconomical but FCL provides the best solution for large-volume price-efficient shipping requirements.
2. Transit Time
- FCL shipments are faster as there’s no need for consolidation or deconsolidation.
- LCL shipments can take longer due to the additional handling involved.
3. Suitability for Shipment Size
- FCL is ideal for large or bulk shipments that can fill an entire container.
- LCL is best for small shipments that don’t justify the cost of a full container.
3. Packaging Requirements
- FCL allows for flexible packaging as the shipper has full control over the container.
- LCL requires careful packaging to protect goods, as they will be sharing space with other shipments.
4. Security
- FCL offers greater security since the container remains sealed from origin to destination.
- LCL involves more handling, which can increase the risk of damage or theft.
5. Availability
- FCL containers might require more lead time for booking.
- LCL services are often more readily available for small or irregular shipments.
Understanding these differences, such as the “difference between FCL and LCL container” options, is crucial when deciding between full container load vs less than container load.
When Should You Choose FCL?
- Large Volume Shipments: When your goods can fill an entire container.
- High-Value Goods: For added security and minimal handling.
- Time-Sensitive Deliveries: To benefit from faster transit times.
- Customized Packaging Needs: When control over packaging and arrangement is essential.
- Long-Term Cost Efficiency: For regular and bulk shipments that lower per-unit costs.
When Should You Choose LCL?
- Small Shipments: When your goods don’t require a full container.
- Cost-Sensitivity: To save money by sharing container space.
- Irregular Shipping Needs: For businesses shipping smaller volumes less frequently.
- Eco-Friendly Goals: Sharing space optimizes resources and reduces environmental impact.
How to Calculate Shipping Costs for FCL and LCL
FCL Shipping Costs
- Flat Rate: No matter if you fully utilize the container or not, a Flat rate will give you the cost of the complete container.
- Container Type and Size: The standard container sizes are 20ft and 40ft, so the price can vary with that.
- Additional Charges: Includes port fees, customs clearance, and transportation.
LCL Shipping Costs
- Volume or Weight-Based: Charged per cubic meter (CBM) or metric ton.
- Shared Costs: Costs are divided among multiple shippers sharing the container.
- Extra Fees: This may include consolidation, deconsolidation, and handling charges.
Accurately calculating costs for FCL and LCL helps businesses budget effectively and choose the most economical option.
Conclusion
In the detailed guide above, we have discussed the different container shipments, their usage, the benefits of choosing them, and which option you should select as per your situation. Carefully consider the scenarios and look for a reliable delivery partner for an efficient shipment delivery.
Frequently Asked Questions
1. What is FCL and LCL?
FCL is Full Container Load, and LCL is Less than Container Load mode of shipping. In FCL, a single shipper has the option to send their goods in a complete container, which remains sealed from the point of origin until it arrives at its destination.
However, in LCL, there is not one shipper but a number of shippers who send their goods in a container. This option is better if you are shipping a lower volume.
2. What does 40 FCL mean?
In FCL shipment, there are standard container sizes, 20’ and 40’. You can choose the container as per your shipment volume requirement.
3. What is cheaper, LCL or FCL?
LCL can be a cheaper option if the volume of shipment you are sending is lower, as in LCL, you only pay for the total weight you send. However, if you are shipping a larger quantity, FCL would be more economical for you.
4. How much is 1 FCL in kg?
A Full Container load can be of different sizes; a 20-foot container can load up to 28,200 kg of shipment weight, and a 40-foot container can carry up to 28,800 kg.
