Whether you run an eCommerce business or brick-and-mortar retail location, shipping products to customers is just a part of the job. There will be times you have to ship freight overseas or along the coast to fulfill a client’s order.
If there’s no rush for the delivery, sending the items by sea is your best option. As you look at shipping costs, you’ll notice freight companies want to know if you’re shipping an FCL or LCL.
If you don’t know what those terms mean, this article will explain and compare each to determine which is beneficial for your business.
What Is FCL?
FCL stands for Full Container Load, which is a shipment mode. FCL is used when you have enough items to fill an entire container or don’t want to share cargo space with goods from other merchants, so you pay the cost for the whole container.
The risk for damage and loss when shipping FCL cargo is low. That’s because there aren’t other crates bumping into yours, and when the container is unloaded, everything is going to one destination. FCL shipments also have a shorter transit time.
What Is LCL?
For shipments that don’t take up the capacity of a container and are consolidated with goods being shipped by other businesses, Less Than Container Load, or LCL, shipping is available.
Although rates for FCL are cheaper, LCL shipping can be a more cost-effective option when you’re not shipping bulk. You only pay for the space your item occupies in the container, which is cheaper than the cost of a full container.
Comparing FCL & LCL
Now that you know the difference between the two shipment modes, it’s time to compare FCL vs LCL in several areas, so you know which option to choose when dealing with ocean freight.
Weight
LCL containers have a maximum weight allowance of one ton for every 35 cubic feet. Anything outside of what’s allowed will be charged more. Small but dense shipments weighing over 330 lbs. should be shipped LCL when the delivery time is flexible.
Shipping it by ocean rather than air can save hundreds of dollars. The maximum allowable weight for an FCL depends on the container size and state it’s being shipped from.
The best way to stay safe is, 20’ containers can hold 17 tons and 40’ containers have a limit of 21 tons. Any cargo exceeding that weight must be moved to another container. Check with your state for their exact guidelines.
Volume
Your shipment’s volume is measured in cubic feet or cubic meters and is one of the determining factors when choosing between FCL and LCL shipping. The capacity consumed by the cargo is its volume, and for low-volume shipments, LCL is the better option. If you’re sending an FCL, most rates decrease after the tenth pallet or if the cargo is more than 500 cubic feet.
Freight Cost
Shipping rates are affected by the route they take, which causes the overall price to fluctuate for both FCL and LCL shipments. But smaller loads are generally cheaper than full shipments, so LCL wins this battle.
Depending on the shipment’s volume, you should check the final destination’s local fees first, as the total cost may be more than an FCL.
Speed
How urgently does the client need the shipment? The answer to that question will decide which option you choose for shipping. If you need a shipment to reach its destination by a specific date, FCL is the clear winner.
LCL shipments experience delays because they’re unloaded and reloaded each time they reach a transshipment port. The other merchants shipping items with yours may have the goods delivered to a different zone. That slows the shipping process down significantly.
Security and Damages
For your freight to reach its destination undamaged, it must be secured properly while in transit. Both FCL and LCL are subject to damage or security issues. If security is a high priority for your shipment, FCL is best as you’ll have exclusive rights to the container.
The merchandise doesn’t come into contact with other companies’ goods, so your risk for contamination and damage is lower. The container also isn’t being unloaded and loaded every time it reaches a destination port.
Less handling means a reduced risk of theft, loss, or damage. However, LCL shipments are packed tightly, leaving no extra room for cargo to slide around the container and end up damaged.
Trackability
The freight company you choose plays a huge role in your ability to track the shipment. Companies use different methods to allow you to view the shipment’s progress, but the most common tracking process uses the information on the bill of lading.
However, once the container reaches the port, there’s no more tracking information available from the ocean freight company. While there’s not much difference in tracking LCL & FCL, FCL slightly edges out LCL for the win. That’s due to FCLs being transported under one consignee, unlike LCLs with multiple handlers.
Split Shipment
When shipping to multiple addresses, you have to split the shipment. LCL shipments are easier to split since the container goes into a warehouse for sorting. Dividing the load allows you to use different ports easily.
FCL shipments don’t go into warehouses for sorting as they aren’t opened until they reach the destination port. So, if you need to split the shipment, you’ll be charged for warehousing, labeling, sorting, loading, and unloading the container. After adding up the fees, choosing LCL may be the better option, and that’s why it wins in this situation.
Delivery Appointments
It’s simpler to book an appointment for delivery with a fulfillment warehouse with an LCL since the shipment volume is less than a full container. FCL shipments have been known to take longer for appointment approval than LCLs. In this case, LCL wins again.
Local Charges
LCL shipments are charged by cubic meter or cubic feet, and the costs include charges for outgoing and incoming ports. You’ll likely pay more in local charges with an LCL shipment. FCL local rates are fixed and billed per container, so the costs are lower, giving FCL the win.
Customs Clearance and Exams
The process for clearing customs is the same for LCL & FCL. The only time an issue arises is when an inspection is conducted. With an LCL shipment, if one consignment is flagged, the entire container is examined.
Because multiple shippers use one container, it runs a higher risk of being flagged and delayed. All shippers will share the exam, warehousing, and port fees for the inspection.
FCL shipments have less of a risk of being inspected, although random checks are common. If your container undergoes an inspection, the responsibility for paying any related fees is all yours.
Even with that being a real possibility, FCL still wins this match-up. The likelihood that your container will be flagged is not as great as when shipping LCL.
Send Your Freight By Sea and Save on Shipping
When it comes to FCL vs LCL, the overall winner is the option that best fits your shipping needs. Overall, ocean freight is cheaper than air freight for large or heavy objects, especially when delivery times are flexible.
Consider all the factors that affect the cost, and then look at your needs and the needs of your customers. Setting the right expectation with clients is important when sending goods by sea as transit times are much longer, but it may just be the boost that your business needs in order to expand.
FAQ
The answer is complicated and depends on several factors such as volume, delivery urgency, and the route traveled.
Yes, send low-volume shipments LCL and large-volume or heavy shipments FCL.
It’s one tone per cubic foot.