Skip to content
Vietnam Trusted BrandsServing the Vietnamese business community since 2013

Editorial · August 13, 2017

LCL vs FCL Shipping: Which Suits a Small Importer

By the editorial panel · Vietnam Trusted Brands

LCL vs FCL shipping comes down to one question: will your goods fill most of a container? If they will, book a full container load (FCL). If they will not, share space with other importers on a less-than-container load (LCL). This guide shows how to decide.

What the two terms mean

FCL means you rent a whole container for your goods alone. It is sealed at your supplier and opened at your door or warehouse. LCL means your cargo is too small to fill a container. A freight forwarder combines your boxes with boxes from other shippers headed to the same port. This practice is often called consolidation or groupage.

The two standard sizes are the 20 ft and 40 ft containers. A 20 ft box holds roughly 33 cubic metres inside. A 40 ft box holds roughly 67 cubic metres. These sizes follow the ISO 668 standard, which is why a box from one carrier fits the ships, trucks and trains of another.

Sources: Wikipedia, "Containerization" (https://en.wikipedia.org/wiki/Containerization); Wikipedia, "Intermodal container" (https://en.wikipedia.org/wiki/Intermodal_container), which describes ISO 668 and the standard container sizes.

How the cost works

Ask how each quote is priced. Full container quotes are usually a flat rate for the whole box. Shared loads are usually priced on the space or weight your cargo takes, plus handling fees at each end. The terms differ from one forwarder to the next, so read them closely.

Small shipments often suit LCL because you do not rent space you cannot fill. But a full container often carries a lower freight rate for the same weight of goods than loose cargo does. At some volume, a whole container can become the cheaper choice even if you do not fill it. Your own quotes will tell you where that point falls.

The simple test is to ask your forwarder for both quotes for the same cargo. Compare the total, not the headline rate. Include port fees, handling charges and trucking at both ends.

Sources: Wikipedia, "Containerization" (https://en.wikipedia.org/wiki/Containerization), which notes that full containers often have lower freight rates than the same weight of bulk cargo.

Handling and risk

With FCL, your cargo is loaded once and unloaded once. Nobody else touches it in between, unless customs opens the box. With LCL, your boxes are usually unloaded at a container freight station near the destination port. There, the cargo is separated and passed to each owner.

More handling means more chances for delay, damage or a mix-up. Pack LCL goods on strong pallets or in sturdy cartons. Mark every package clearly with your name and the destination. Many companies prefer a single container load, even a mostly full one, because it is simpler and more secure than sharing.

Sources: Wikipedia, "Containerization" (https://en.wikipedia.org/wiki/Containerization), on grouping cargo at a container freight station and the preference for single loads.

Transit time

An FCL box can leave as soon as it is loaded and the carrier has space. An LCL shipment must wait. The forwarder holds your cargo until enough shipments for the same port are ready to fill a container. That wait can add days at the origin.

At the destination, LCL cargo also needs time to be unloaded and sorted before you can collect it. If your goods are urgent, FCL is usually the faster way to get them. Ask your forwarder for the cut-off date for each weekly sailing so you know when your cargo must arrive.

Sources: Wikipedia, "Containerization" (https://en.wikipedia.org/wiki/Containerization), on how LCL cargo is gathered and grouped by destination.

A simple way to choose

Start with your cargo volume. Measure each carton, multiply length by width by height in metres, and add them up. Then check these points:

  • Under a few cubic metres: LCL is almost always cheaper.
  • Close to a full 20 ft box: ask for an FCL quote and compare.
  • Fragile or high-value goods: lean toward FCL for less handling.
  • Tight deadline: lean toward FCL to avoid the consolidation wait.
  • Regular small orders: LCL keeps your cash and stock levels low.

Many small importers start with LCL and move to FCL as their orders grow. There is no shame in either choice. The right one is the one that gives you the lowest landed cost for the cargo you actually have.

Sources: Wikipedia, "Intermodal container" (https://en.wikipedia.org/wiki/Intermodal_container), for container capacities used in the volume guide.

Questions to ask your forwarder

Before you book, ask a few direct questions. What is the total cost to my door for both options? How often does the LCL service sail? Where is the cargo unloaded, and what fees apply there? What happens if part of my shipment is damaged? Who holds the paperwork, and when will I get it?

Keep the answers in writing. A clear quote for each option makes the choice easy, and it helps you spot hidden charges before they reach your invoice. Most problems in shared shipments start with unclear terms, not bad luck.

Sources: Wikipedia, "Containerization" (https://en.wikipedia.org/wiki/Containerization), on grouping shared cargo by destination.

Sources

  • https://en.wikipedia.org/wiki/Containerization
  • https://en.wikipedia.org/wiki/Intermodal_container

Filed August 13, 2017 · All news