Together with LCL shipment, FCL is also a common method in shipping terms, used to ship large and heavy cargo.
What does FCL mean? Is it similar to LCL shipment?
FCL is one of the most common terms used in ocean freight along with LCL shipment. It stands for “full container load”, which contrasts with “less than container load”. When it comes to FCL shipment, a shipper books one entire container to deliver his cargo. It’s not compulsory to fill up the whole space of the container. To be more precise, the shipper has exclusive rights to the booked container.
There are many differences between FCL shipment and LCL shipment. An LCL container is shared by multiple shippers to transport partial loads, which are often smaller than the total space of the container. With the LCL shipment method, the shipper is only responsible for the space occupied by their goods.
Advantages and Disadvantages of FCL compared to LCL shipment
When considering whether FCL or LCL shipment is suited for your business, here are some major benefits and drawbacks of FCL.
FCL benefits:
- After only airfreight, it’s best way to ship cargo on time
- It costs less than airfreight
- In case of shipments with total volumes of 13 CBM and above, it is cheaper than LCL shipment
- FCL loading and unloading just happen at once. That means its transit time is often shorter than LCL shipment
- The FCL container are sealed during transit process, which lessens the risk of cargo damage
- It’s free from risk of contamination from other goods
- For large, hazardous, expensive and fragile goods, it’s the best choice to ship
- For typical goods as fresh produce, FCL refrigerated containers are used to ensure the appropriate condition. Refrigerated container is not commonly used in LCL shipment
FCL drawbacks:
- Unlike LCL shipments, FCL rates change continuously
- There’s probably a reduction of availability in peak season
- There Are added charges for inventory space. For example, in Mumbai port, the cost for a 1,000-square-foot warehouse for your FCL shipments would be Rs 60,000 a month in rent. Meanwhile, at a monthly rent of Rs 20,000 for a 300- square- foot warehouse would suffice your LCL shipment
- As a large shipment, it requires more manpower and equipment
- It’s not a good choice for small shipments except the case of valuable or fragile goods shipping
How about FCL rates? Is it cheaper than LCL shipment?
When it comes to FCL shipping, you need to pay for the container known as “commodity box rate”. Here are charges quoted under FCL shipping terms:
- Collecting charges from your warehouse
- Terminal handling charges at port of origin for storage and equipment
- The cost of delivery called sea freight
- Terminal handling charges at port of destination
- Transit charges for delivering cargo by truck to the warehouse at destination
When considering the total costs, shipping cargo under FCL terms is usually more expensive than in case of LCL shipment. However that rule is only true when based on sheer volume. When looking at the dimension-wise side, FCL is often cheaper.
When does FCL outweigh LCL shipment?
The general rule is to deliver heavy, large and bulk cargo with FCL shipment, smaller ones with LCL shipment. However, consider these factors as well:
- By shipping practice, it’s better to use FCL containers for consignment with a volume of 13 CBM and above. LCL shipment is not available in these cases due to the excess volume. As you have exclusive rights for the container, you can fully utilise its space and weight capability
- FCL is best for time-sensitive shipments thanks to its shorter delivery time compared to LCL shipments. FCL transit time usually falls between three to six weeks, depending on the trade routes
- FCL is ideal for cargo which is valuable, fragile and sensitive to change such as fresh produce. As there is higher risk of contamination from other cargo in LCL shipment, thus it’s not suitable for mentioned goods
Helpful tips for FCL shipment
- To get a good rates, book FCL containers in advance
- For both ocean and inland transport, weigh your cargo precisely to determine what kind of container you need
- Though you cannot control the former but can avoid errors stemming from your part. Do this by booking in advance, choosing accredited freight forwarder, skipping peak season whenever possible, handing over cargo on time. There are potential risks which can happen during the shipping process. They can be caused by the negligence of the carrier (overbooking, skipping ports) and shipper (paper work, non-compliance issues)
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