When it comes to shipping out of the country, it can be difficult to decide between Full Container Load (FCL) and Less Than Container Load (LCL). By understanding the differences between these two shipping methods, you will be able to determine which one is more suited to your business or personal shipping requirements. First, let’s take a look at what FCL and LCL shipments are, different stages that these shipments encounter, and the key factors to consider to determine the right mode of expedition for your shipment.
What is Less Than Container Load (LCL) shipping?
Less than container load shipping or LCL shipping refers to consolidating smaller shipments from various customers into a single container for shipping. An LCL shipment is the ideal choice when your goods don’t completely fill a container because your goods is less likely to be filling one container per load and less likely to be sharing the fcl full container load of space with other LCL shipments. LCL is cost effective when you have smaller shipments because you pay only for the space your goods occupy.
Advantages of LCL Shipping:
- Pay Only for the Space You Occupied: Cost–Effective for Small Shipments.
- Flexible for Smaller Loads: Ideal for businesses or individuals shipping smaller quantities.
- LCL is available on most major shipping routes & is thus widely available.
Disadvantages of LCL Shipping:
- Transit Times Can Be Longer As Delays Can Happen Because Of The Consolidation Process.
- With multiple shipments in one container, freight processing is increased and therefore increased risk of damage.
- Additional Fees: Potential extra charges for handling, storage, and documentation.
What is Full Container Load (FCL) shipping?
On the other hand, Full Container Load (FCL) is the shipping of goods that make up the whole container. With FCL shipments you are using the entire container, exclusively – it is not combined with others’ shipments. Large shipments, in which the cargo ship can fill the packages in a container that’s full capacity, are suitable for this shipping method.
Advantages of FCL Shipping:
- No Waiting for other shipments: The container leaves as soon as it has been loaded.
- Lower Risk of Damage: Your cargo is now handled less often and therefore there is less chance for damage.
- A lesser risk of theft or loss: Since your goods are the only contents of the container.
- FCL is More Cost-Effective for Large Shipment if You can Fill the Container.
Disadvantages of FCL Shipping:
- Smaller Shipments Pay Higher: If your shipment does not fill the container, you will pay for unused space.
- Presents a Major Disadvantage: It is best suited for businesses that require higher volumes compared to businesses that require small loads.
- Some costs such as storage and handling fees may apply if you rent a full container.
Mode FCL or LCL: Key Factors to Decide the Best Option for Your Shipment
There are some key factors that determine whether FCL or LCL would be suitable for a company:
- Fee structure – FCL is the most ideal method if you have a shipment filling at least 80% of a container, but if you do not have enough volume for a container, LCL suits your requirements as you are only paying for the amount of space you are using.
- Cost Considerations – FCL is economical if you are shipping bulk cargo while LCL is economical if you are shipping small amount of cargo but includes handling fee.
- Faster – FCL is faster as there is no delay due to consolidation bottleneck, while LCL is slower due to cargo grouping and multiple transit points.
- Less Handling – Handling is less in FCL, reducing risk of damage. The goods handled in LCL are more frequent, which enhances the probability of the goods to be wear and tear.
- Security & Control – FCL provides greater security because your shipment is the exclusive load in its container. This also means that LCL shipments share space hence increasing the exposure to theft or damage.
- LCL Destinations and Availability – Many shipping routes are available for LCL, and for FCL, major trade – hubs seem to work better.
FCL and LCL in other Modes of Transports
Though used primarily in ocean freight, the FCL and lcl (Full Container lcl less than container load) and LCL (Less than Container Load) are similar conceptual terms in other transport modes.
At Air freight, cargo will be loaded in the Unit Load Device (ULD), a full unit like lcl and FCL have a faster transit without much handling, consolidated air freight is like LCL and fcl, small shipments are combined to make shipment cheaper.
In Rail freight, the major structure is similar to such that full container bookings function as FCL and shared container load and less space as LCL, which is cost effective form of freight forwarder and of transportation long distance.
FTL and LTL are the trucking equivalents—FTL means that the entire truck is dedicated to just one shipment and delivers to the one end location fastest and most direct, while LTL means multiple shipments consolidate into a single LTL truck for more economical, but generally slower, delivery.
Conclusion
Ultimately, when it comes to deciding between choosing FCL and LCL, your shipment size, budget and speed of arrival to the port destination the packages’ port, and security priorities will determine which service you will choose to use. Larger shipments, those that need to arrive faster, and have minimal handling, are best sent via FCL, since the shipper pays for the space whether it is full or not; whereas LCL is more cost effective for minimal loads that do not justify renting a full container.
