Understand the difference between FCL and LCL

When it comes to shipping, you may frequently encounter the terms FCL and LCL. But what do they actually mean? And how do the sea freight or shipping rates differ between the two? In today’s post, I’ll provide you with a detailed comparison of FCL and LCL to assist you in making an informed decision when it comes to shipping your cargo.

• What are LCL and FCL?
• FCL vs LCL: Understanding the Key Differences (with Charts)
• FCL Price & LCL Sea Freight (Case Study)
• FCL vs LCL | Differences in Document and Operation Processes
• Conclusion

What are LCL and FCL?

Meaning of LCL in Shipping

LCL stands for Less than Container Load. It refers to small shipments that are loaded in less than an entire container. Booking an LCL container is similar to taking a bus. You share the container space with others, which means that the cost is shared among all the shippers. LCL shipping is a cost-effective and friendly option for small businesses, especially startups. Many of our Amazon clients prefer to ship their cargo by LCL.

Meaning of FCL in Shipping

FCL stands for Full Container Load. As the name suggests, it refers to an entire container that is booked by the shipper for exclusive transport of cargo. There is no need to share space with others in a container. Booking an FCL container is similar to taking a taxi, not a bus. One container is the unit for delivery in transit. FCL shipping can help strengthen cargo security and reduce cargo damage.

In general, large purchasers prefer FCL shipping, and the three most commonly used container sizes are 20ft, 40ft, and 40ft high cube. In shipping practice, a 20 FCL container can carry a maximum of 28 CBM, a 40 FCL container can carry a maximum of 58 CBM, and a 40 high cube container can carry a maximum of 68 CBM.

Note: 40HQ stands for 40 high cube container, and 1 CBM (Cubic Meter) is equivalent to 1 cubic meter.

FCL vs LCL: Understanding the Key Differences (with Charts)

There are several differences between FCL and LCL shipments. For example, FCL is recommended for inland transportation, while LCL is more commonly used in coastal areas. Additionally, LCL is more suitable for goods that come in various types and sizes, as it allows for easier consolidation of cargo. To provide a clearer understanding of the differences between FCL and LCL shipments, I have included the following comparative charts.

Cargo Volume

Note:

• 1.It is recommended to consider air freight for cargo that is less than 1 CBM and weighs less than 200kg (150kg during peak season).
• 2.It is recommended to consider FCL for cargo that uses 10 or more standard pallets.
• Cargo Weight

Note: It is necessary to move any remaining cargo to a separate container if your FCL exceeds the maximum weight regulated by nations.

Ocean Freight

Many people believe they must choose LCL shipping when their cargo does not fill an entire container. However, this is not always the case. Pay attention to the cargo volume range of “13-17 CBM”, where both LCL and FCL can be considered.

For instance, if your product occupies 17 CBM, selecting LCL involves sorting labor expenses at the port, which are always higher than ocean freight and will increase your total cost. In this case, choosing a full 20ft container (with a maximum of 28 CBM of cargo loading) would be costly.

Note: LCL shipping rates are typically more stable than FCL rates, although the price per CBM for FCL is usually lower than for LCL.

Local Charge

Transit Time & Customs Clearance

Note: A single mistake in consignment can result in the entire container not being released, which can further delay timely transport.

Cargo Security

Compared to air freight, sea shipping provides the flexibility to transport a wider range of cargo. For instance, LCL may be the only option if you have 3 CBM of compressed gasses and aerosol cans (which are restricted by airlines). Now, let’s address the following question: what is the difference in security between LCL and FCL? Please refer to the chart below.

Note: LCL shipping may be a safer choice for certain goods with limited space for movement in small shipments.

Split Shipping

In most cases of FCL shipping, goods are delivered per container. However, there is an exception. For instance, if you have 3 containers of diaper bags, with 2.5 CBM to be delivered to West Covina and 0.5 CBM to Santa Monica, additional steps are required to transport the containers to a warehouse for sorting, which will increase your costs.

Delivery Appointments ((including Amazon FBA)

Booking During China Holidays & Shipping Peak Season (August to October)

Summary

1. LCL is recommended for shipments occupying 1-13 CBM. For shipments with volumes of 13 CBM-17 CBM, you can ask freight forwarders for LCL and FCL rates and compare pricing. For shipments ≥ 17 CBM, FCL is a better choice.
2. FCL is faster and safer than LCL.
3. When choosing between LCL and FCL, you should consider shipment volume, cost, security, and urgency as the key factors.

FCL Price & LCL Sea Freight (Case Study)

The cost of FCL shipping (full container load) includes the freight price and additional surcharges such as fuel fees, exchange rate fluctuations (usually as a percentage), and port expenses.

Due to the increase in international fuel prices and exchange rate fluctuations, shipping companies may charge extra fees, but there is no standard fee for this. To know the latest specific fees, it’s best to ask freight forwarders. Ocean freight “all-in” (all-inclusive) covers all possible extra fees mentioned above.

The cost of LCL shipping (less than container load) mainly includes ocean freight, warehousing expenses, grouping and ungrouping charges, and other fees. LCL sea freight is calculated by the volume used in a shared container and is lower than grouping and ungrouping charges at warehouses, which require a large amount of manpower and infrastructure.

Sea freight prices are determined by shipping companies and change in real-time. The recent sea freight quotation is valid for about one week and changes quickly.

For example, if you are shipping bulk cargo from Ningbo to Los Angeles port, LCL sea freight is around $70/CBM. If you are shipping a large amount of cargo from Ningbo to Los Angeles port, the FCL shipping rates are as follows: 20GP – $1500 per container; 40HQ – $1600 per container. Remember that 20GP = 28 CBM, and 40HQ = 68 CBM.

Note that sea freight is higher during the peak season (from August to October each year). Just like airline tickets, there is a 50-60% discount during the off-peak season, but there is a huge increase in airline pricing (full ticket price) during the peak season.

If you want to learn more, you can check our previously written blog Shipping Cost as this is part of Section 3 – Sea Freight. If you want to know the specific cost to your port, you can directly ask our sourcing experts by submitting a request.

Case: There are 100 boxes of goods to be shipped by sea. The box size is 25x20x20 cm, with a net weight of 13 kg and a gross weight of 15 kg.

The calculation standard is W/M, Class 10, and the basic freight is $200 per FT (freight ton). Port expenses are charged at 10% of the basic freight, and the fuel fee is $10 per FT. What is the total sea freight?

Step 1 – Basic Freight

• W (Weight) = 15 kg = 0.015 tons
• M (Measurement or Volume) = (0.25 x 0.2 x 0.2) = 0.01 m³
• Choose the larger value for calculation. Basic Freight = 0.015 x 100 x 200 = $300

Step 2 – Surcharges

• Fuel Fees = 0.015 x 100 x 10 = $15
• Port Expense = 300 x 10% = $30
• Total Surcharges = Fuel Fees + Port Expense = $45

Step 3 – Total Sea Freight

• Basic Freight + Surcharges = $300 + $45 = $345

Tips for Calculating Sea Freight:

1. Compare W (weight) and M (measurement), and then use the larger one as the calculating unit.
2. Total sea freight = W/M x (basic freight + surcharges)

FCL vs LCL | Differences in Document and Operation Processes

Document Differences between FCL and LCL

Types of B/L (Bill of Lading)

FCL cargo owners can request a Master B/L (MBL) or House B/L (HBL). However, LCL cargo owners can only obtain an HBL.

Shipping container companies only accept full container bookings, so the consolidator books shipping space by gathering and grouping multiple goods into a container. Additionally, the shipping company only issues an MBL, so the consolidator needs to issue HBLs to cargo owners.

Shipping Marks with Different Degrees of Importance

In FCL, the shipping mark is not as significant as in LCL. This is because the entire transport and handover process is based on the container unit, without the need for handling procedures such as unpacking.

However, in LCL, shipping marks are key to distinguishing cargo of different shippers in one container. Furthermore, the consolidator also affixes transport labels with important information such as B/L number (MBL and HBL) and packing box number. These are essential for subsequent unpacking and distribution at the port of destination.

Operation Process Differences at Port of Departure

For FCL, buyers need to pack products in boxes and ship containers to the port. However, for LCL, buyers are supposed to send goods to the customs supervision warehouse. Then, the LCL freight forwarder deals with cargo consolidation.

For customs declaration, FCL allows buyers to find a customs broker to handle the process. In contrast, for LCL, it’s a must to be cleared by the customs broker of the freight forwarder in the supervision warehouse.

Operation Process Differences at Port of Destination

After FCL cargo arrives at the port of destination, the owner can directly pick it up by B/L. However, for LCL, the forwarder must first take cargo to their warehouse by B/L, and then the buyer can pick up goods by HBL issued by the forwarder.

Handover System Differences

• CY to CY (Container Yard) refers to FCL service (also known as FCL/FCL).
• CFS to CFS (Container Freight Station) refers to LCL service (also known as LCL/LCL).

Note: CFS is specially used to handle LCL cargo, including unpacking, distribution, and handover.

Aside from the above mentioned two ways, there are other handover methods widely used in container transport: CY to CFS (FCL/LCL), CFS to CY (LCL/FCL), Door to Door, Door to CY, Door to CFS, CY to Door, CFS to Door. I have made a transport flow chart for your visual understanding.

Conclusion

We hope you found this article informative and that it provided you with inspiration on how to choose a suitable shipping method between FCL and LCL. If you still have any questions or concerns, please don’t hesitate to contact us.

At Onestopimport, we are a leading sourcing agent with extensive experience helping clients import from China. Our team of sourcing experts is always available to provide support.

Please feel free to leave any comments or questions below, and we will ensure that all of them are answered.