LCL and FCL are the two options for ocean freight that companies have to make while shipping products across borders, which may be involved. All the strategies have their strength and weaknesses, making it important that when selecting an approach, the needs of the firm, the size of the shipment, and the finances involved should be put into consideration. In this regard, to help you determine which of the two shipping solutions is most appropriate for your situation, this blog will look at a comparison of the main differences between LCL and FCL.
Understanding LCL and FCL
Less Than Container Load Other business goods share a container with your own in LCL or Less Container Load transportation technique. Since they only charge according to the amount of storage space your items occupy in the container, it is suitable for small shipments. The shipment size calculated in terms of volume in cubic meters directly influences the cost of shipment. You might, however, have less control over the shipment schedule and delivery calendar since several shipment consignments are consolidated in one shipment container.
Well, there is a full container load, or FCL, in which the client pays for the whole container for their products. This approach is common among large-volume freight companies. As your goods are the lone shipment within the container, FCL provides more protection, faster delivery time, and much better logistical authority. FCL containers can accommodate varying cargo amounts because they are available in two common sizes: 20 feet and 40 feet.
Key Considerations: LCL vs FCL
1. Cost Efficiency
The cost structure is the main distinction between LCL and FCL. Because you pay for the entire container, regardless of how much space you use, FCL frequently appears more expensive. However, because of added administration and logistics costs, LCL has a greater cost per unit of freight than FCL.
LCL requires you to take into consideration:
- At a Container Freight Station (CFS), items are loaded.
- Combining shipments of different products.
- Expenses for delivery to the destination warehouse.Extra handling charges at the CFS of origin and destination.
Since the price of a full container is frequently lower than the total LCL expenses for the same volume, FCL becomes more economical for companies shipping more than 15 cubic meters (CBM). On the other hand, LCL works well for smaller shipments where hiring a whole container would be too expensive.
2. Shipment Value
This again depends on the number of commodities as this assists in the selection between LCL and FCL services. This is particularly important because small to medium consignments require LCL because, normally, the volume shipped is far below the full container load. For instance, LCL allows you to share the cost of the container with other shippers, which will enable you to secure lower charges if your shipment occupies only 5 CBM.
FCL, however, is slightly preferable if the goods weigh more than 15 cubic CBM or if you pay more per cubic meter here. LCL rises in terms of cost at this capacity, and hiring an entire container is more strategic and economical.
3. Control and Speed
Generally speaking, FCL shipments are quicker than LCL. Your items don’t have to wait to be combined with other shipments when you use FCL because you have complete control over the container. The container can be shipped straight to its destination after it has been packed.
Consolidation at the origin and deconsolidation at the destination, however, take time for LCL shipments. Delays may result from this procedure, especially if other shipments in the same container are delayed or need more processing. FCL is a more dependable choice if your company depends on deliveries that must be made on schedule.
4. Adaptability and Availability
LCL provides more flexibility for companies that ship smaller, less frequent items. You simply pay for the space your items take up in the container, so you don’t have to worry about filling it. Because of this, it’s a sensible option for new companies or companies with fluctuating shipping quantities.
For companies that regularly transport big orders, FCL provides unmatched convenience and efficiency but has less volume flexibility. It streamlines inventory management and gets rid of the hassle of handling several shipments in one container.
5. Risk and Security Management
There may be a greater chance of damage or loss because LCL shipments include many items from different shippers. Mishandling is more likely when goods in a shared container are handled more frequently during consolidation and deconsolidation.
In contrast, FCL offers a better degree of security. From the point of origin to the destination, your goods stay undamaged, lowering the possibility of damage. Because of this, FCL is the recommended option for companies transporting valuable or delicate items.
When to Choose LCL?
- Compared to a full container, your shipment volume is much lower (less than 15 CBM).
- You want to ship smaller loads as cheaply as possible.
- Your company has variable delivery schedules.
- You don’t want to pay for container space that isn’t being used.
Businesses testing new markets with small shipments or those just starting in international trading will find LCL especially helpful.
When to Choose FCL?
- Your cargo volume is close to or greater than 15 CBM.
- Better control over the shipping process and quicker shipment times are your top priorities.
- Security is a top priority, particularly for sensitive or expensive items.
- You wish to stay away from LCL’s extra handling costs and logistics.
For companies that handle large, frequent shipments and appreciate dependability and efficiency in their 3PL logistics, FCL is the preferred option.
Conclusion
Choosing between LCL and FCL depends on your business’s specific needs, shipment volume, and budget. LCL offers flexibility and is ideal for smaller shipments, while FCL provides efficiency and better value for large-volume shipping. By understanding the differences and evaluating your requirements, you can select the shipping method that aligns best with your operational goals.
