In the field of international logistics and shipping, full container load (FCL) and less than container load (LCL) are two common modes of cargo transportation. They are suitable for cargoes of different quantities, specifications and budgets.
This article will analyze FCL and LCL in detail, and help enterprises or individuals better understand and choose the appropriate mode of transportation through comparison.
Introduction to FCL and LCL
- FCL: refers to the shipper renting a container alone, and the goods in the container are owned by only one shipper. This mode is suitable for large-volume cargo transportation to ensure that the goods are not mixed with other goods.
- LCL: refers to the shipper’s goods are not enough to fill a container, and need to be packed together with other shippers’ goods. This mode is suitable for small-volume cargo, and the freight is shared by the volume or weight of the cargo.
The Main Difference Between FCL and LCL
Cargo shipping volume
- FCL: Suitable for the transportation of large quantities of goods, such as manufacturing, large retailers or bulk commodity trading.
- LCL: Suitable for the transportation of small and medium-sized batches of goods, such as small and medium-sized enterprises, cross-border e-commerce or personal belongings.
Cost
- FCL: Due to the large volume of goods, the transportation cost per unit of goods is relatively low. The cost of a single container is usually lower than LCL
- LCL: Due to the small volume of goods, the transportation cost per unit of goods is relatively high, and it is charged according to the volume (CBM) or weight (kg) of the goods, but multiple shippers share the same container, and each shipper can share part of the transportation cost.
Shipping time
- FCL: Since the container is loaded with only one kind of goods, it can be quickly loaded and unloaded at the port, which improves transportation efficiency and has a relatively short transportation time.
- LCL: It is necessary to wait for the container to be full or wait to be transported with other goods, and the transportation time is relatively long, and it may be unpacked at the destination port, resulting in a longer stay time.
Security
- FCL: The goods are owned by only one shipper, which is safer and not affected by other goods.
- LCL: Mixed with other goods, there is a certain risk of loss or damage of goods.
Advantages and Disadvantages of FCL
Advantages:
- Control: Customers have full control over the entire container and can arrange the packing and sealing of the goods independently.
- Safety: The entire container is loaded with only one customer’s goods, reducing the risk of theft or damage to the goods during transportation.
- Flexibility: Customers can arrange the type (such as ordinary box, refrigerated box, etc.) and size of the container according to their needs.
- Transportation speed: Fast and convenient, supporting self-pickup service, avoiding the trouble of picking up goods by detour.
- Service convenience: Provide full tracking service, fast handling procedures and personalized customization services.
- Transportation cost advantage: Suitable for large quantities of goods, the larger the amount of goods, the lower the unit freight.
Disadvantages:
- High cost: If the amount of goods is not enough to fill the whole container, empty container costs will be incurred, resulting in increased costs.
- Requires sufficient cargo volume: FCL is more economical only when the amount of goods is large, otherwise it may cause unnecessary expenses.
Advantages and Disadvantages of LCL
Advantages
- Cost-effectiveness: Multiple shippers share the same container, and each shipper shares part of the transportation cost, which is more economical.
- Flexibility: Suitable for the transportation of small quantities of goods, providing shippers with more flexible transportation options.
- Simplified process: Freight forwarding companies usually provide services such as cargo collection, packing, customs declaration, transportation and unpacking, which simplifies the logistics process of shippers.
Disadvantages:
- Uncertain timeliness: LCL goods need to wait for collection, which may extend the transportation time.
- Low safety: Mixed with other goods may increase the risk of loss or damage of goods.
How to Choose FCL and LCL
Two key factors to consider when choosing between FCL and LCL are the weight and size of your shipment. If your shipment consists of only one or a few pallets, it may be more cost-effective to choose a consolidated container in the form of LCL.
By choosing LCL, you can save costs by sharing container space with other shippers. This sharing arrangement allows for efficient use of container capacity, reducing the overall shipping cost of small shipments. Instead of paying for the entire container, you only pay for the space that your specific shipment occupies.
In addition, LCL shipping offers flexibility in terms of the size of your shipment. If the weight and size of your shipment does not require a full container, LCL shipping is a viable and economical solution. It allows you to ship your shipment without waiting for other shipments to fill a container, ensuring a timely and efficient shipping process.
Considering the weight and size of your shipment is essential to determining whether FCL or LCL is the most appropriate option. While FCL may be more advantageous for large shipments that require a dedicated container, LCL is a cost-effective alternative for small shipments that can be consolidated with other shipments.
When choosing between FCL and LCL, in addition to considering the weight and size of your shipment, you must also consider the nature and urgency of your shipment. Factors such as the presence of hazardous goods and the speed of shipping required play a major role in determining the most appropriate option.
For hazardous goods shipments that require special handling and adherence to safety regulations, FCL shipping is often recommended. Having exclusive control over the container allows for better management and adherence to necessary safety protocols throughout the shipping process.
Similarly, if time sensitivity is a priority for you and you require fast delivery, FCL offers a distinct advantage. With FCL, there is typically a more direct, streamlined route from origin to destination, minimizing shipping time and reducing potential delays associated with the consolidation and deconsolidation process of LCL shipments.
With FCL shipping, you have greater control over your shipment, ensuring the integrity, safety, and compliance with any specific requirements. This option is particularly useful when shipping hazardous goods or when time is of the essence.
Finally, when choosing between FCL or LCL, consider not only weight and size, but also the nature of the shipment and the speed at which it is required to be delivered. Evaluating these factors will help you make an informed decision to best meet your shipping requirements.
Cost Composition of FCL and LCL
FCL Cost Composition
- Basic freight: charged according to the type of container (20 feet or 40 feet) and the route distance.
- Loading and unloading fees: container loading and unloading and port service fees.
- Customs clearance fees: customs clearance fees for goods in the exporting and importing countries.
- Insurance costss: usually charged in proportion to the value of the goods to ensure the safety of goods during transportation.
LCL Cost Composition
- Basic freight: charged according to the volume of goods (CBM) or weight (kg), the cost is higher than the unit freight of FCL.
- Unpacking fee: unpacking operation fee at the destination port.
- Customs clearance fee: due to the involvement of multiple consignees, the customs clearance fee of LCL cargo is usually higher.
- Management fee: due to the need to coordinate multiple shippers and cargo management, LCL usually increases management fees.
Size and Volume of FCL and LCL
FCL transportation means that the shipper rents the entire container for cargo transportation. The volume and size of the container are standardized. Common container types include 20-foot containers and 40-foot containers. Their sizes are as follows:
20-foot container
- Volume: about 33 cubic meters
- Carrying weight: about 28 tons (may vary depending on the route and packing requirements)
40-foot container (40ft Container)
- Volume: about 67.7 cubic meters
- Carrying weight: about 28 tons
LCL is mainly charged according to the volume (cubic meters) or weight (kilograms) of the goods. There is no fixed requirement for the volume and size of the container for a single shipper. Usually, LCL containers also use standard 20-foot or 40-foot containers, and the goods of multiple shippers share the volume of these containers.
Cargo size requirements: Generally speaking, LCL has a limit on the maximum size of a single piece of cargo to ensure that it can be safely packed with other goods.
When choosing between FCL and LCL modes of transport, multiple factors need to be considered comprehensively. Through this article, we can understand the characteristics and cost structure of FCL and LCL, so that enterprises can make the best choice according to their cargo needs, thus achieving efficient and economical cross-border transportation.