In international logistics, FCL (full container load) and LCL (less than container load) are two common modes of transportation. They each have different advantages and disadvantages and applicable scenarios. Understanding their differences is crucial to choosing the right mode of transportation. This guide will introduce the characteristics, advantages and disadvantages of FCL and LCL in detail to help you make the most sensible choice in cargo transportation.
What is FCL Shipping (Full Container Load)?
FCL stands for “Full Container Load”, which means a whole container of goods that is completely owned by a single customer. Whether it is sea, air or rail transportation, FCL usually means that the entire container space is used by one customer. This method is suitable for situations where the cargo volume is large or a dedicated container is required.
Advantages of FCL transportation:
- Cost advantage: For bulk cargo, the unit transportation cost of FCL is usually lower. Because there is no need to share containers with other customers, the distribution of transportation costs is more reasonable and the overall cost is relatively stable.
- High security: During the full container transportation process, the goods do not need to be frequently handled and transferred, reducing the risk of damage and loss. Especially for valuable or fragile goods, FCL provides better protection.
- Flexibility: The schedule of FCL transportation is relatively fixed, and customers can adjust the shipping time according to their needs, avoiding some time uncertainties in LCL transportation.
Disadvantages of FCL transportation:
- Higher minimum cost: The minimum cost of FCL is usually higher, so if the cargo volume is small, it may not be suitable to choose full container transportation.
- Waste of space: If the cargo volume is not enough to fill the entire container, customers will face a situation of wasted space, which is not cost-effective for small or bulk cargo.
What is LCL Shipping?
LCL stands for “Less than Container Load”, which means that the goods of multiple shippers are loaded into one container. Each customer shares the shipping cost of the container according to the volume or weight of their goods. LCL is suitable for transportation needs with small quantities or that do not require a dedicated container.
Advantages of LCL transportation:
- Flexibility: LCL transportation is suitable for small quantities of goods, and can combine the goods of multiple customers for transportation, reducing the minimum requirements for transportation. Even if your goods are not enough to fill a container, you can choose LCL to avoid waste.
- Lower cost: Since the cost of LCL is calculated based on the volume or weight of the goods, LCL transportation is more economical than FCL for small quantities of goods. It is especially suitable for small and medium-sized enterprises with small quantities of goods.
- Save storage space: LCL’s consolidation mode can arrange goods more flexibly, so that enterprises do not need to pay additional space fees for less than a full container, thereby saving storage costs.
Disadvantages of LCL transportation:
- Long transportation time: LCL needs to wait for other customers’ goods to be loaded, which may cause delays in loading. In addition, during LCL transportation, the goods will go through multiple transfers and sorting, and the transportation time is usually longer than FCL.
- Lower safety: Since LCL is the goods of multiple customers assembled in one container, the goods may be affected by other goods during transportation, causing collisions or squeezing, increasing the risk of damage.
- Additional costs: Although the initial cost of LCL is lower, because additional costs may be incurred at each transfer (such as LCL fees, devanning fees, etc.), the final total cost may not be as expected.
The difference between FCL and LCL
Full container load and less than container load are 2 different modes of ocean shipping. The main difference between the two is that in LCL shipping, the buyer shares the space inside the container, as opposed to leasing the entire container space under an FCL agreement.
LCL: Less than Container Load
- Definition: LCL or Less than Container Load is a method of shipping where your goods will share space with other goods within the same container. This method of shipping is ideal for shipments that are too small to fill an entire container.
- When to use: If your shipment does not exceed 13-15 CBM (cubic meters), choose LCL shipping between China and France. This provides flexibility because it allows you to ship your goods when they are ready, rather than waiting for enough to justify the cost of a full container.
- Example: Let’s say you are a boutique fashion retailer importing unique items from China. Your orders may be irregular and each shipment may not be large enough to fill a container. In this case, using LCL shipping allows you to better manage freight rates and inventory levels.
- Cost impact: With LCL shipping, you only pay for the space your goods take up in the container. However, keep in mind that the per-unit shipping cost may be higher compared to FCL shipping. Still, for smaller or inconsistent shipments, the overall cost and enhanced supply chain flexibility offered by LCL shipping may still make it a more attractive option.
FCL: Full Container Load
- Definition: FCL or Full Container Load is a unique mode of ocean shipping where the goods fill an entire container, usually 20 feet or 40 feet. It is called FCL shipping because it provides security as it remains sealed from origin to destination.
- When to use: FCL shipping is the ideal mode of shipping when dealing with larger volumes of goods, usually more than 13/14/15 cubic meters. This is because of economies of scale, where shipping in larger quantities is more cost-effective.
- Example: Let’s say you are shipping a large shipment of electronics from Shanghai to Paris. Considering the size and value of the shipment, choosing FCL shipping allows your goods to be safely packed in a single container, reducing the potential for loss or damage during transportation.
- Cost Impact: In FCL shipping, you are responsible for the cost of the entire container; hence the cost may seem high. However, since the cost per cubic meter will be lower, it will be less for larger shipments. Getting a FCL shipping quote is essential to understand your financial situation. The quotation usually includes terminal handling charges at origin and destination, freight charges and possible surcharges depending on the cargo and route.
| LCL: Less than Container Load | FCL: Full Container Load | |
| Shipment’s Volume | It can be used for shipments as little as 1 CBM, or less, although the minimum chargeable volume is 1 CBM. (Note: It is also advisable to check the air options if the shipment is less than 1 CBM and the chargeable weight is less than 200kg).LCL is ideal for shipments with a volume of less than 15 CBM. | Any shipment can use the FCL agreement, regardless of the volume. However, it is best to consider booking a full container if the total space that the load consists of 15 CBM or more.Below are the most common container sizes for FCL shipments as well as their approximate capacity: 20ft container – 33 CBM 40ft container – 67.5 CBM 40’ HQ – 76 CBM |
| Shipment’s Weight | The maximum weight per CBM is 1 ton or 1,000 kg. If the shipment’s weight exceeded the allowable load, then the chargeable weight will be based on the gross weight. (Ex: a 1CBM load weighs 1,300 kg, the chargeable weight is going to be 1.3 CBM instead of 1 CBM)Small shipments below 1 CBM but weighs more than 150kg or more can be more economical to be shipped using LCL instead of Air freight. This is because airlines base the chargeable weight of a shipment either by its gross weight or volumetric weight, whichever is higher. (Ex: A 0.8 CBM shipment with 300 kg gross weight will have a volumetric weight of 133 kg. However, no matter how small the shipment occupies, airlines will charge 300kg as the base weight for charging the freight.) | Each container size has a different maximum allowable weight, which is always posted on the container as a reference. Some countries have various rulings on the maximum load. Below are the maximum payload for the basic container sizes. 20’ – 18.6 tons 40’ and 40’ HC – 28.6 tonsThe US has several maximum gross allowable cargo weight for different states; below is the safe payload weight per container: 20’ – 17 tons 40’ and 40’ HC – 21 tonsAfter exceeding the maximum weight, the shipper must move the remainder of the cargo to a different container. |
| Freight Cost | The costs are usually cheaper for smaller loads under 15 CBM.The overall cost can be higher for loads over 15 CBM depending on the route. The local fees are usually higher than the FCL. If the shipment is +/- 2 CBM of 15 CBM, it is best to check the full container load option. | 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 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. |
| Speed | LCL can take at least four days or more in total transit time compared to FCL. Additional days required to account for unloading, sorting, and deconsolidation. If one consignment in the same container gets chosen by the customs to undergo an inspection, the entire container will be put on hold by the customs. | The total transit time is usually shorter compared to LCL because the containers are unloaded from the vessel and delivered to the final destination. |
| Security and Damages | 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 on the buyer. | There is a lower risk of the cargo getting damaged, stolen, or lost because the container travels are direct route with a single consignee. Insurance and container loading inspections are also available as an extra layer of protection. |
| Trackability | The vessel and container can be tracked by using the information found on the Bill of Lading. Unfortunately, the tracking ends when the container arrives at the port or when the cargo unloads from the container. The tracking might also not be accurate, especially for multiple handlers. You can get more information from your freight forwarder for instances like this. | The tracking for FCL is the same for LCL. You can either track the vessel or the container’s location using the information found on the House Bill of Lading. FCL is much easier to follow than LCL since the full container is transported under one consignee. Your freight forwarder will also give you an estimate of the shipping plan. |
| Split Shipment | It is easier to split shipments to be delivered to different places for an LCL shipment since the full container is going to a warehouse for sorting. If the shipments are going to several addresses that are far from each other, LCL might be a better option depending on the total volume. The load can be divided so you can use different ports depending on where the shipment will be delivered. | You can also split the shipment under an FCL agreement; however, it’s best to check what your options are and which will be more economical. Since the container for an FCL doesn’t need to be transported into a warehouse, splitting the shipment will require this extra step, equating to warehousing fees, labeling fees, sorting fees, loading, and unloading fees, delivery fees, etc. It is best to consult your freight forwarder on the best route for your shipment not to end up paying more. |
| Delivery Appointments | Depending on where the shipment is going, LCL shipments might be easier to book with fulfillment warehouses for deliveries than higher volume, loads, because the overall size is not as large as a full container’s volume. | There are times wherein the wait time for a delivery appointment to deliver an FCL container to a fulfillment warehouse takes a longer time for approval compared to an LCL delivery. Shippers sending their cargo to Amazon FBA have been known to face these issues. |
| Booking a Container Space During China Holidays | There are times when booking space in an LCL shipment is easier before a long holiday in China compared to FCL. Because there is a demand for space, LCL consolidators maximize availability by allowing a significant amount of shippers to share space and not ship partially empty containers. | Because of the high demand for shipping before a China holiday such as the Chinese New Year, the availability of the containers for an FCL shipment might have scarcity. |
| Amazon FBA | The carrier will make an appointment with the Amazon warehouse for truckload delivery. Cartons are usually palletized under Amazon’s requirements during deconsolidation and before the load is shipped to Amazon’s warehouse. | Like LCL, the carrier will also make an appointment with Amazon’s warehouse for truckload delivery under an FCL shipment. Cartons are usually palletized with pallets acceptable to Amazon in the country of origin before the goods are loaded into a container. Pallets can either be added by the supplier or by the freight forwarder. It is much easier if the supplier can include pallets to avoid delays and possible additional fees incurred by bringing the goods into a warehouse for sorting and palletizing. |
| Local Charges | Shipments under LCL shipments are billed per CBM. Rates include the local charges for both outgoing and incoming ports. It is common to pay more on the local charges when you’re doing LCL compared to your previous FCL shipment. | The local charges for an FCL shipment are a fixed amount and are usually billed per container. These charges are generally lower than the costs incurred on LCL shipments. |
| Customs Clearance and Customs Exam | There is no difference with how an LCL and FCL shipment clears customs. Although the challenging part for LCL is that if a single consignment gets flagged by customs from an examination, the whole container would need to undergo an examination. This can be as simple as an X-Ray exam or as thorough as the intensive CET (Contraband Enforcement Team) Exam. Either way, due to the increased number of consignees in a single container, the chance for an examination increases.The cost for the custom examination, and any corresponding warehousing and port fees will be shared among all of the consignees using the container. | Customs do a random inspection of containers. That being said, the risk of a container being checked or inspected is always possible, even if you are consistently shipping the same product and using the same route. The cost for the customs examination, as well as any port or warehousing fees incurred during the exam, will all be shouldered by the buyer. That is why it is best always to consider the possibility of paying customs examination when you’re making a shipment. |
Should I choose FCL or LCL when shipping from China?
When choosing between FCL and LCL, there are several factors to consider:
Cargo volume and volume: If your cargo volume is large and can completely fill a container, FCL is undoubtedly a more cost-effective choice. For small batches or irregular cargo, LCL can effectively avoid wasting space. If the cargo is less than 15 cubic meters, you can choose LCL. If the cargo is about 2 cubic meters more or less than 18 cubic meters, it is recommended to consider full container transportation.
Transportation time requirements: If you have high requirements for transportation time, FCL may be more suitable because its transportation time is usually more fixed, while LCL may have uncertainty in time due to waiting for LCL and transit.
Safety considerations: If your cargo is particularly fragile or valuable, choosing FCL can avoid the risks of consolidating with other customers’ cargo. FCL can provide more protection and ensure the safe arrival of the cargo.
Budget constraints: If your budget is tight and the cargo volume is small, LCL may be a more economical choice. But it should be noted that when choosing LCL, the final total cost may increase due to multiple transits.
In general, FCL and LCL have their own advantages and disadvantages, and companies should make reasonable choices based on the characteristics of their goods and transportation needs. For bulk goods or customers with strict time requirements, FCL may be more suitable; while for small quantities of goods, LCL provides a more flexible and economical solution. Understanding the differences between these two modes of transportation can help companies optimize costs and improve efficiency in global logistics and transportation.