Understanding FCL and LCL in Ocean Freight
FCL vs LCL , which one can help you save big on ocean freight from China? Believe it or not, this is when your knowledge about FCL vs LCL comes in. Did you know that in today’s latest update on international trade, nearly 95% of shipments from China are moved by sea?
You read that right! With the increasing demand, shipping lines are carrying more cargo every day. It’s important to know the difference between FCL and LCL. You could play a big role in the growing logistics market!
Knowing the main differences between FCL and LCL is important for your business. This knowledge helps you match costs and timing with your shipping needs both by FCL and LCL.
In this article, we will look at sea shipping options. We will focus on FCL vs LCL. This is for those who may not know much about these choices.
Stay with us until the end to learn important insights and helpful tips. These will guide you in choosing between FCL and LCL for your business.
What is Full Container Load (FCL)?
Have you ever been asked by your manufacturer in China to book a full container load for your shipment, only to wonder what exactly a full container load is? Don’t worry! We’re here to explain FCL in detail so you can weigh your options between FCL vs LCL.
The term “Full Container Load” (often referred to as FCL) is a type of sea freight shipment (FCL and LCL) where you rent or pay for the entire container, exceeding 15 cubic meters (cbm). This method offers significant control over your shipment, as the container is reserved solely for your products.
Full Container Load comes in different container types and sizes, tailored to best suit your shipment needs about FCL vs LCL. This way, you can maximize the advantages and address any downsides when choosing between FCL and LCL.
Keep scrolling to understand what makes FCL an ideal choice when comparing FCL vs LCL for your shipping needs!
Shipment Type Container Size Container Types Available Full Container Load 20FT Full Container Standard, Refrigerated, Open Top, Flat Rack Full Container Load 40FT Full Container Standard, High Cube, Refrigerated, Open Top, Flat Rack Full Container Load 40HQ (High Cube) Full Container High Cube, Refrigerated, Open Top, Flat Rack
What is Less than Container Load (LCL)?
If you’re one of the many importers from China shipping products in smaller loads — then Less than Container Load (commonly called LCL) is the perfect option for you when choosing between FCL and LCL.
Less than Container Load (LCL) is a sea freight method. With LCL, you pay only for the space your shipment takes up. Your cargo shares a container with other shipments from different importers.
When deciding between FCL vs LCL, you might wonder if LCL can save you more on shipping costs. That is absolutely true! For shipments under 15 cbm, LCL is generally the best choice, so you don’t have to worry about which to choose between FCL and LCL.
Just like FCL, LCL provides cost-efficiency and improved inventory management. This means you need to be especially attentive to your shipment details, carefully checking the packing list.
Key Differences Between FCL and LCL
Wondering about the key differences between FCL and LCL? In this part, we will guide you through the FCL vs LCL options to help you create a well-crafted shipping plan.
Space and Volume Requirements
As mentioned before, when deciding between FCL and LCL, it’s important to look at how much space your shipment needs. You should think about the volume weight of the whole shipment.
For example, FCL is typically used for shipments ranging from 18 cbm to 20 cbm. You can book a full container with a specific size and volume capacity that perfectly suits your shipment. If your shipment is between 1 cbm and 14 cbm, it is better to choose Less than Container Load (LCL) when deciding between FCL and LCL.
Tips: If you are confused between FCL and LCL, remember you don’t need a full container for smaller shipments. Just ask our sales team for information about LCL options. If your shipment is more than 15 cbm, do not spend time looking for shared-container rates. Choose FCL instead, as it will save you money.
Cost Structure and Pricing Models
Every day, we get this question from our customers: “What are the costs I need to pay when choosing between FCL and LCL?” You are probably wondering the same, which is why you are still reading—costs play a big role in deciding between FCL vs LCL.
With a Full Container Load, you pay a fixed price for the whole container. It does not matter how much space you use or if you fill it up completely. In contrast, with Less than Container Load, you only pay for the space your goods occupy within a shared container. In LCL, the cost is generally calculated based on volume weight (cubic meters) or, for dense shipments, the actual weight if it exceeds the cubic measurement.
Cost Analysis: FCL vs LCL
Did you know that by looking at the cost differences between FCL and LCL, you can save money on your shipments? This is especially helpful if you have a budget.
Let’s learn how cost analysis of FCL and LCL can help you make better and cheaper choices for your business.
When FCL Saves Costs
When choosing between FCL vs LCL, FCL can help you save costs when you have large or bulk shipments that exceed 15 CBM, making it more cost-effective than LCL since you have enough goods to fill the entire container. FCL offers much better costing, as it is associated with reduced extra charges such as consolidation and handling fees.
Cost Benefits of LCL for Smaller Loads
If you have smaller loads, consider LCL. For example, if you have just 7 cbm or anything below 15 cbm, the ideal choice between FCL vs LCL is LCL, as you only pay for the 7 CBM, not the whole container. If saving money and being flexible matter more to you than moving fast and having control over the shipment, then choose LCL between FCL vs LCL.
Advantages of Choosing FCL Shipping
Are you still having trouble choosing between FCL vs LCL? Don’t worry—we have plenty of first-hand tips to share with you. When shipping with FCL and LCL, FCL offers valuable advantages if you know when is the right time to use FCL.
Exclusive Container Use and Reduced Risks
We are 100% sure that between FCL vs LCL, you have heard a lot about FCL being exclusive to your shipment, meaning no other shipments are loaded into your container except yours. When looking at the risks of FCL vs LCL, FCL has fewer chances of handling mistakes, lost items, and wrong deliveries.
FCL and LCL are different ways to ship goods. FCL means you have a full container. This means your items are less likely to get mixed up with other products. Your goods are safer from contamination because they are the only items in the container. This is especially important for sensitive or dangerous goods.
Faster Transit Times with Direct Shipping
When considering the choice between FCL vs LCL, transit time is as crucial as cost in making your decision. In comparing FCL and LCL, Full Container Load clearly offers faster transit times with direct shipping, allowing your shipment to arrive sooner than goods sent via the LCL method.
Examining the transit time between FCL vs LCL, Full Container Load generally experiences fewer delays. This is because there’s no need for the shipping company to wait for other goods to load (consolidated shipment) which leads to faster processing for loading, customs clearance, and unloading at the ports.
Advantages of Choosing LCL Shipping
You might be thinking now what advantages you can get when choosing LCL shipping between FCL vs LCL services. Well, the answer is just right here! So keep on reading for you not miss this chance to know how you can maximize the service of LCL without worrying about the cost at the end.
Pay-Per-Use Flexibility for Small Shipments
To decide when to use the LCL method between FCL vs LCL, one important factor that might convince you is that with LCL, you only pay for the specific space you use in a shared container. For instance, if your shipment is just 2 CBM, you’ll only be charged for 2 CBM—no more, no less. Sounds reasonable and perfect for your smaller shipments, right?
Inventory Management and Cost Efficiency
Are you one of those importers who just need to ship from China once or twice a month? Then, LCL is the best sea freight method to use when choosing between FCL vs LCL.
Real-World Example:
One of our customers from the United Arab Emirates set up an electronics shop and ordered various electronic items totaling 240kg and 2.5 cbm from 6 different suppliers.
When comparing FCL and LCL, DDPCH shipping company opted for LCL shipping to meet the customer’s specific needs:
- A shipment with a total gross weight of 240kg and 2.5 cbm, which needs only a shared container, not a full container
- Consolidation of multiple small orders from different factories in different batches.
- Close management of the inventory system depending on the demand of his customers in the UAE, resulting in irregular shipments and avoiding overstocking of the inventory
This example highlights how LCL shipping is an ideal choice when balancing logistics, cost, and flexibility. Now, with this real-world scenario, you have a clearer understanding of when to choose LCL shipping in the FCL vs LCL.
Factors to Consider When Choosing FCL or LCL
When choosing between FCL and LCL, it’s important to understand the key factors to consider so you can carefully weigh your options in the FCL vs LCL shipping. Here, we shall explain the essential factors you must not forget when shipping with FCL and LCL.
Shipment Volume and Type of Goods
The first important factor to think about when choosing between FCL and LCL is the size of your shipment and what kind of goods you are sending. So, to make it easier for you we make a table where you can easily see the difference between the volume and type of goods when shipping FCL and LCL.
| Sea Freight Method | Type of Container | Volume Capacity (Cubic Meters) | Weight Capacity (Tons) | Type of Goods |
|---|---|---|---|---|
| Full Container Load (FCL) | 20FT Full Container | 32.6 – 33.2 cbm | 21.6 – 28 tons | General Goods, Sensitive Goods, Dangerous or Hazardous Goods |
| Full Container Load (FCL) | 40FT Full Container | 66.7 – 67.7 cbm | 26.5 – 30.4 tons | General Goods, Sensitive Goods, Dangerous or Hazardous Goods |
| Full Container Load (FCL) | 40HQ (High Cube) Container | 75.8 – 76.4 cbm | 26.5 – 30.4 tons | General Goods, Sensitive Goods, Dangerous or Hazardous Goods |
| Less than Container Load (LCL) | Shared Container | 1 – 14 cbm | Varies based on shipment size | General Goods, Brand Goods, Sensitive Goods, Dangerous or Hazardous Goods |
Time Sensitivity and Delivery Schedules
Still confused about which one to choose between FCL and LCL? For sure, you’re just waiting for that second factor to be uncovered when finding yourself stuck in the middle of the FCL vs LCL decision.
When using the FCL sea freight method, you can expect faster delivery and a lower risk of shipping delays. This is because loading and processing the entire container involve less hassle and take less time.
On the other hand, when comparing FCL and LCL, keep in mind that the LCL ocean freight method typically takes longer. This delay is due to the need to consolidate shipments from multiple customers until the container is full.
Making the Right Choice for Your Business
Choosing between FCL and LCL is an important decision for your business! If your shipments are over 15 cbm, FCL offers faster delivery and exclusive container use, perfect for large-scale needs.
For smaller shipments under 15 cbm, LCL lets you save costs by sharing space, making it ideal for flexible inventory management. Understanding these options will help you make the right choice in the FCL vs LCL and keep your business running smoothly!
Real-World Examples of FCL and LCL Shipping Success
Now you’re ready to explore real-world examples of FCL and LCL shipping in international trade. Let DDPCH guide you through the stories behind our customers’ shipping journeys, showing how businesses like yours are making the best choices when deciding between FCL vs LCL.
Small Businesses Maximizing Savings with LCL
One of DDPCH’s customers shipped machinery using the FCL method because the supplier advised him to use a 20ft general container.
Regrettably, this turned out to be very expensive for him.
Why? His shipment didn’t actually require a full container, but he still paid for the entire space. On top of that, he faced extra charges from the factory in China all the way to the destination port, without maximizing the container space.
Tips: You know what went wrong here? If our customer had clarified all shipment details with the manufacturer and carefully checked the packing list—with the help of our DDPCH sales team—he could have chosen a more cost-effective option, which is LCL, and paid only for what he truly needed when choosing between FCL and LCL.
Large-Scale Shipping Strategies with FCL
At DDPCH, we work closely with our customers to ensure that when choosing between FCL and LCL, we use smart strategies to find the most cost-effective shipping solution tailored to your needs.
Take one of our regular customers as an example. After helping him avoid costly mistakes with LCL shipping, we’ve been guiding him ever since. With monthly shipments, sometimes he just needs a shared container, but most of the time, he imports large quantities that require a full 20ft container—and we make sure he gets the best value every time.
Expert Tips for Optimizing FCL and LCL Choices
Making the right decision between FCL and LCL can save your business time and money. Here are some expert tips from DDPCH to optimize your shipping strategy:
Tip 1: Assess Shipment Volume (FCL vs LCL)
Choose FCL for shipments over 15 cbm to ensure cost-effectiveness and faster transit. Opt for LCL for smaller loads under 15 cbm to save on container space costs.
Tip 2: Understand the Type of Your Goods (FCL vs LCL)
Use FCL for sensitive or high-value goods that need exclusive container use. LCL is suitable for general goods or smaller, non-urgent shipments.
Tip 3: Factor in Time Sensitivity (FCL vs LCL)
For time-critical shipments, FCL ensures quicker delivery due to direct shipping. For flexible schedules, LCL allows you to consolidate goods and save costs.
Tip 4: Analyze Cost Structures (FCL vs LCL)
If budget is your priority, calculate the total costs for FCL vs LCL based on volume, weight, and additional fees like consolidation or handling charges.
By using these tips, you can choose between FCL and LCL with confidence. This will help improve logistics for your business. DDPCH is here to support you!
FCL Or LCL from China! Which one?
Choosing between FCL and LCL for your shipments from China is important. It helps you meet your business goals while staying within your budget and on schedule. If you need the full use of a container and faster shipping, you can choose FCL. If you want more flexibility and lower costs, LCL may be better. Knowing these options helps you make better shipping choices.
At DDPCH, we help businesses understand FCL and LCL. We provide solutions for all shipment sizes and needs. Let our expertise guide you to the most efficient and cost-effective shipping strategy—because when it comes to FCL and LCL, DDPCH is here to make the right choice easy for your business!
FAQ
- What is FCL in shipping?
FCL (Full Container Load) means renting the entire container for your shipment, ensuring exclusive use and faster transit. - What does LCL stand for in shipping?
LCL (Less than Container Load) is a shipping method where your goods share container space with other shipments, making it cost-effective for smaller loads. - What are the key differences between FCL and LCL?
FCL is suitable for large shipments over 15 cbm, offering exclusive use and faster delivery, while LCL is ideal for smaller shipments under 15 cbm, saving costs by sharing container space. - What factors should I consider when choosing FCL vs LCL?
Consider shipment size, type of goods, budget, and delivery timeline to decide between FCL and LCL. - What are the advantages of FCL shipping?
FCL provides faster transit times, exclusive container use, reduced risks of contamination, and cost efficiency for larger shipments. - What are the advantages of LCL shipping?
LCL offers cost flexibility for small shipments, efficient inventory management, and the ability to pay only for the space used in a shared container. - Which is better for time-sensitive shipments, FCL or LCL?
FCL is better for time-sensitive shipments due to direct shipping and faster customs clearance. - How does DDPCH help in choosing between FCL and LCL?
DDPCH provides expert guidance, cost analysis, and tailored solutions to help you choose the most efficient and cost-effective shipping method. - When should I choose FCL over LCL?
Choose FCL for shipments exceeding 15 cbm or when you require faster delivery and complete control over the container. - Why is LCL a good option for small businesses?
LCL is cost-effective for small shipments, offering flexibility and better inventory control without requiring a full container.
