Hi, do you often hear the terms full container load (FCL) and less than container load (LCL) in the import business?
As a senior China sourcing agent, it is crucial to deeply understand and effectively communicate the concepts of FCL and LCL. As the core of international logistics, shipping is the core of international logistics. FCL and LCL represent two different cargo transportation strategies. A closer look at both approaches involves business strategies to reduce costs, increase efficiency, and meet customer needs. By digging deeper into these two modes of transportation, we can better provide customers with customized logistics solutions and achieve superior import results.
1. Definition of FCL and LCL
A. FCL
(1) Definition: It means that the goods are enough to fill one or more containers, and the owner of the goods in the container is the same person.
(2) Freight calculation: Calculated based on the entire container.
B. LCL
(1) Definition: Refers to goods with multiple owners in a container, which is applicable to situations where the quantity of goods is small.
(2) Freight calculation: Calculated based on cubic meters, a container needs to be shared with other importers.
2. Comparison Between FCL and LCL
|
Aspect |
FCL |
LCL |
| Shipping time | same | Involves work such as grouping, sorting, and packing, which usually requires more time |
| Cost comparison | Usually lower than LCL | Usually taller than a full box and involves more work |
| Freight volume | Applicable to cargo with a volume greater than 15 cubic meters | Suitable for cargo less than 15 cubic meters |
| Cargo weight limit | Varies according to cargo type and destination country | Varies according to cargo type and destination country |
| Shipping cost calculation method | Determined by the shipping company, involving the volume and weight of the cargo | Determined by the shipping company, calculated based on cubic meters of cargo |
| B/L | You can request MBL (Master B/L) or HBL (House B/L) | You can only get HBL |
| Differences in operating procedures between port of origin and port of destination | Buyers need to box and ship the product to the port | The buyer needs to send the goods to the customs supervision warehouse, and the freight forwarder will handle the consolidation of the goods. |
Note: MBL (Master B/L) is the master bill of lading, issued by the shipping company, recording the goods in the entire container. HBL (House B/L) is a split bill of lading, issued by the freight forwarder, recording the details of the LCL cargo.
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Both FCL and LCL have their own advantages and disadvantages, and the choice depends on factors such as cargo volume, cost, safety, cargo characteristics, and transportation time.
When considering your shipping needs, understanding the differences between FCL and LCL can help avoid paying extra fees.
3. Recommendations for FCL and LCL Strategies Under Different Circumstances
A. It is Recommended to Use FCL:
(1) Large cargo volume: When the total volume of the cargo is greater than 15 cubic meters, it is usually more economical and efficient to choose FCL transportation. This ensures that goods are not split during transport, reducing the risk of damage and confusion.
(2) Time sensitive: If you need the goods to reach the destination as soon as possible, FCL is usually faster than LCL. Full container goods can be delivered directly from the loading location to the destination without the need for sorting and consolidation operations at the destination.
(3) Specialty of goods: For some goods with special properties, such as those that are fragile, fragile, and have high environmental requirements, FCL transportation can provide better protection and control of environmental conditions.
(4) Cost savings: When the cargo is large and the budget allows, FCL shipping is usually more economical. In some cases, FCL charges may be relatively low and the additional cost of LCL shipping may be avoided.
B. Situations Where it is Recommended to Use LCL:
(1) Small cargo volume: If the cargo volume is less than 15 cubic meters, LCL is usually a more economical choice. Avoid paying for the entire container and instead pay based on the actual volume of your cargo.
(2) Flexibility requirements: LCL provides greater flexibility, especially when the quantity of goods is small or insufficient to fill the entire container. You can share containers with other importers, thus reducing shipping costs.
(3) Don’t be in a hurry for time: LCL transportation usually takes more time because it involves LCL, sorting, packing and other work. If time is not a factor, you can choose the more economical LCL shipping option.
(4) Goods are dispersed: When the goods come from different Chinese suppliers, are of various types and need to be sorted at the destination. For example, purchase from multiple suppliers in Yiwu market, LCL is a more suitable choice. This helps reduce warehousing and sorting time at the destination.
Overall, the choice between FCL or LCL depends on the specifics of the shipment and individual business needs. Before making a decision, it is recommended to have a detailed consultation with a freight forwarder or a reliable Chinese sourcing agent to ensure that you make the best choice for your needs. Welcome to contact us, we can provide best one stop service!
4. Notes and Suggestions
Get product size information before shopping to get a more accurate estimate of shipping costs and profits.
Choose between FCL or LCL in different situations and make wise decisions based on cargo volume, cost and urgency.
Through the above content, readers can have a deeper understanding of these two modes of cargo transportation.
5. FAQ
Q: I am running a small wholesale business of electronic products. Should I choose FCL or LCL transportation?
A: If your electronic product order is larger, more than 15 cubic meters, it is usually recommended to choose FCL shipping. This ensures greater cargo security and reduces the risk of potential damage during transport. FCL shipping also offers faster shipping times, making it suitable for businesses that are sensitive to delivery times.
Q: I have some samples and small batch orders, is it suitable for LCL shipping?
A: For samples and small batch orders, LCL shipping may be a more economical option. You can share a container with other importers, thus spreading the shipping costs. Especially when the quantity of goods is smaller but still needs to be transported internationally, LCL shipping is a flexible and cost-effective option.
Q: My fresh food business needs to ensure that the goods arrive in the shortest possible time. Is LCL suitable?
A: For time-sensitive goods such as fresh food, FCL transportation may be more appropriate. FCL transportation can reduce the dwell time at the port and improve the efficiency of rapid processing and delivery of goods. This is crucial for businesses that need to keep their goods fresh.
Q: What additional charges may I face for LCL shipping?
A: Additional costs that may be involved in LCL transportation include port service fees, agency service fees, delivery order fees, terminal handling fees, etc. These charges can vary depending on the destination, so when choosing LCL shipping, you need to understand all possible additional charges to get a more accurate estimate of the total shipping cost.
Q: My goods need to be processed at the destination. What is the difference between FCL and LCL?
A: If your goods need to be processed or sorted at the destination, LCL shipping may involve more operations and time. FCL shipping is usually more straightforward, with the product packed by the buyer and shipped to the port, while LCL shipping may require the goods to be sent to a customs-supervised warehouse and the freight forwarder to handle the LCL, adding some extra steps.
Post time: Feb-01-2024