When it comes to international shipping, understanding the difference between FCL (Full Container Load) and LCL (Less than Container Load) is crucial for businesses and individuals who want to ship goods. Both FCL and LCL are sea freight services provided by freight forwarders and are an important part of the logistics and supply chain. The following are the main differences between FCL and LCL in international shipping:
1. Quantity of goods:
- FCL: Full Container Load is used when the volume of cargo is sufficient to fill an entire container, or less than a full container. This means the entire container is dedicated to the shipper's cargo. The shipper charters the entire container to carry their cargo, avoiding mixing with other goods. This is particularly suitable for situations with large volumes of cargo, such as factories exporting bulk shipments, traders purchasing industrial goods in bulk, or shippers sourcing products from multiple suppliers for consolidated shipment.
- LCL: When the volume of cargo does not fill an entire container, LCL (Less Container Load) is used. In this case, the shipper's cargo is combined with other shippers' cargo to fill the entire container. The cargo then shares space within the container and is unloaded upon arrival at the destination port. This is designed for smaller shipments, typically between 1 and 15 cubic meters per shipment. Examples include small batches of products from startups or small, batch orders from small and medium-sized traders.
Note: 15 cubic meters is usually the dividing line. If the volume is larger than 15 CBM, it can be shipped by FCL, and if the volume is smaller than 15 CBM, it can be shipped by LCL. Of course, if you want to use a whole container to load your own goods, that is also possible.
2. Applicable situations:
-FCL: Suitable for shipping large quantities of goods, such as manufacturing, large retailers or bulk commodity trading.
-LCL: Suitable for shipping small and medium-sized batches of cargo, such as small and medium-sized enterprises, cross-border e-commerce or personal belongings.
3. Cost-effectiveness:
- FCL: Although FCL shipping may be more expensive than LCL, due to "full container" pricing, the fee structure is relatively fixed, primarily consisting of "container freight (charged per container, such as approximately $2,500 for a 40HQ container from Shenzhen to New York), terminal handling charges (THC, charged per container), booking fees, and document fees." These fees are independent of the actual volume or weight of the cargo within the container (as long as it falls within the required weight or volume). The shipper pays for the entire container, regardless of whether it is fully loaded. Therefore, shippers who fill their containers as full as possible will see lower "freight costs per unit volume."
- LCL: For smaller volumes, LCL shipping is often more cost-effective because shippers only pay for the space their goods occupy within the shared container. Less than Container Load (LCL) costs are charged on a "volume-based" basis, based on either the volume or weight of the shipment (the higher of "volume weight" and "actual weight" is used for calculation, i.e. "the larger one is charged"). These costs primarily include a per-cubic-meter freight rate (e.g., approximately $20 per CBM from Shanghai port to Miami port), a LCL fee (based on volume), terminal handling fees (based on volume), and a devanning fee (charged at the port of destination and based on volume). Furthermore, LCL may incur a "minimum freight rate." If the cargo volume is too small (e.g., less than 1 cubic meter), freight forwarders typically charge a "1 CBM minimum" to avoid inflated costs due to small shipments.
Note: When charging for FCL, the cost per unit volume is lower, which is beyond doubt. LCL is charged per cubic meter, and it is more cost-effective when the number of cubic meters is small. But sometimes when the overall shipping cost is low, the cost of a container may be cheaper than LCL, especially when the goods are about to fill the container. So it is also important to compare the quotations of the two methods when encountering this situation.
Let Senghor Logistics help you compare
4. Safety and Risks:
- FCL: For Full Container Shipping, the customer has full control over the entire container, and goods are loaded and sealed in the container at the origin. This reduces the risk of damage or tampering during shipping as the container remains unopened until it reaches its final destination.
- LCL: In LCL shipping, goods are combined with other goods, increasing the risk of potential damage or loss during loading, unloading and transshipment at various points along the way. More importantly, LCL cargo ownership requires "shared container supervision" with other shippers. If a problem arises during customs clearance of a shipment (such as document discrepancies), the entire container could be detained by customs at the port of destination, preventing other shippers from picking up their goods on time and indirectly increasing "joint risks."
5. Shipping time:
- FCL: FCL shipping typically has a shorter shipping time than LCL shipping. This is because FCL containers depart from the supplier's warehouse, are picked up and loaded directly at the warehouse, and then transported to the port yard at the departure port to await loading, eliminating the need for cargo consolidation. During loading, the FCL is hoisted directly onto the vessel, unloading it from the ship directly to the yard, preventing delays caused by other cargo. Upon arrival at the destination port, the FCL container can be unloaded directly from the ship to the yard, allowing the shipper or agent to collect the container after completing customs clearance. This streamlined process reduces the number of steps and intermediate turnover, eliminating the need for additional container deconsolidation. FCL shipping is typically 3-7 days faster than LCL. For example, from Shenzhen, China to Los Angeles, USA, FCL shipping typically takes 12 to 18 days.
- LCL: LCL shipping requires consolidating cargo with other shippers' cargo. Shippers or suppliers must first deliver their cargo to a designated "LCL warehouse" designated by the freight forwarder (or the freight forwarder can pick up the cargo). The warehouse must wait for the cargo from multiple shippers to arrive (usually taking 1-3 days or longer) before consolidating and packing the cargo. Customs clearance issues or delays with any shipment before loading the entire container will delay the loading of the entire container. Upon arrival, the container must be transported to the LCL warehouse at the destination port, where the cargo from each shipper is separated and then the shipper is notified to collect the cargo. This separation process can take 2-4 days, and customs clearance issues with other shippers' cargo may affect the collection of the container's cargo. Therefore, LCL shipping can take longer. For example, LCL shipping from Shenzhen to Los Angeles typically takes 15 to 23 days, with significant fluctuations.
6. Flexibility and control:
- FCL: Customers can arrange the packing and sealing of goods on their own, because the entire container is used to transport the goods. During customs clearance, shippers only need to declare their own goods separately, without having to check the documents of other shippers. This simplifies the process and prevents customs clearance from being affected by others. As long as their own documents (such as bill of lading, packing list, invoice, and certificate of origin) are complete, customs clearance is typically completed within 1-2 days. Upon delivery, shippers can directly pick up the entire container at the port yard after customs clearance, without having to wait for other cargo to be unloaded. This is particularly suitable for scenarios requiring fast delivery and tight subsequent transportation (e.g., a batch of cosmetic packaging materials shipping from China to USA that arrives to port and needs to be immediately transported to the factory for filling and packaging).
- LCL: LCL is usually provided by freight forwarding companies, who are responsible for consolidating the goods of multiple customers and transporting them in one container. During customs clearance, although each shipper declares their goods separately, since the goods are contained in the same container, if customs clearance of one shipment is delayed (e.g., due to a missing certificate of origin or classification dispute), the entire container cannot be released by customs. Even if other shippers have completed customs clearance, they cannot pick up their goods. When picking up goods, shippers must wait until the container is delivered to the LCL warehouse and unpacked before they can pick up their goods. Unpacking also requires waiting for the warehouse to arrange for the unpacking process (which may be affected by the warehouse's workload and the progress of other shippers' picking up). Unlike FCL, which offers "immediate pick-up after customs clearance," this reduces flexibility.
Through the above description of the difference between FCL and LCL shipping, have you gained some more understanding? If you have any questions about your shipment, please consult Senghor Logistics.
Post time: Aug-23-2024
