Tag: ocean shipping

Choosing Between FCL and LCL: Which One Is Right For You?

Choosing Between FCL and LCL: Which One Is Right For You?

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Choosing Between FCL and LCL: Which One Is Right For You?

If your business involves ocean shipping services, you may be familiar with these shipping terms: Full Container Load (FCL) and Less Container Load (LCL). These terms are commonly used in Ocean Freight Shipping, a method used to transport large quantities of goods through the sea. Without a clear understanding of the two shipment types, choosing one of the shipping types that would potentially fit your business may be challenging. It takes adequate research, observation, and analysis to determine which one is the best for your business needs.

Thus, in this article, we will guide you in identifying the advantages and disadvantages of both shipment types and the key factors you need to look closely into before deciding which shipment type you want to use.

 

FCL vs. LCL: Identifying the Advantages and Disadvantages

FCL and LCL certainly have different characteristics, which shape the advantages and disadvantages of each shipment type. Each type has its own pros and cons, depending on your business needs.

Choosing FCL means that you book a single container exclusively for your cargo transportation only. Typically, FCL shipments are priced at a flat rate per container size. This condition makes FCL shipping more expensive if you’re not using most or all of the container, but if you do need that much space, FCL will save you money. Usually, shippers who regularly transport more than 15 cubic meters find FCL more affordable because they can take full advantage of the economies of scale gained by filling a 20’ or even 40’ container.

Meanwhile, in LCL, the price you pay is only for the space that is going to be used by your shipment. The shipment can be delivered even if the volumes are small. This means, LCL may be a good fit if you do business on a consignment basis, whereby it may not be practical to book a full container. Thus, unless you want to commit to large deliveries from suppliers, which can carry the risk of tying up much-needed cash flow, LCL is the best option for you.

Another advantage of FCL is that shipment is delivered to you at your convenience. Meanwhile, in LCL, you cannot adjust the time of delivery according to your convenience. FCL may also afford a faster transit time compared to LCL shipment. This condition is mainly due to the additional handling time required to completely fill the shared container or consol at origin and again at the destination.

Along with that, there are also security advantages to shipping an entire container in FCL. Shipping FCL means less risk of damage or theft from mishandled goods than LCL cargo that typically requires additional cargo handling at origin and destination.

 

Now, How Do You Choose?

After identifying the advantages and disadvantages of both shipment types, the following are some questions that you may want to consider in choosing which shipment type to use:

  • Where is the shipment coming from or going to? Is it import or export? Whether the shipment is import or export and where it is originating from or being shipped to, everything makes an impact on the pricing. The rates and availability differ from country to country.
  • What are the goods that you are shipping? If the total of your goods weighs up to 15 CBM or more, you may want to go for FCL. Otherwise, LCL is perhaps a better deal.
  • What are your firm’s production levels? If your company is manufacturing enough products to fill a container load every week, for instance, then FCL will be the obvious choice. Nonetheless, if it’s not producing at that level and losing transportation time is a concern, LCL will be a more attractive option.

 

Conclusion

No matter which shipment type that you choose, whether it be FCL or LCL, keep in mind that in selecting the best shipment, you need to conduct adequate research and analysis on each shipment type and consider consulting the results with your freight forwarder. Hence, do not hesitate to communicate with our team at HAFA Cargo about your consideration, and we will accommodate your needs with our high-quality ocean services.

FCL vs LCL: All The Basics You Need To Know

FCL vs LCL: All The Basics You Need To Know

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Ocean Freight Shipping is commonly known as a method of transporting large quantities of goods through the sea. Within the shipping process, large containers pack the products, which will then be loaded onto vessels and sailed to the destination country. Afterward, the products will be delivered to customers. Moreover, just like over-the-road carriers that offer both truckload and less-than-truckload options, ocean shipping falls into two categories: Full-Container-Loads (FCL) and Less-Container-Loads (LCL).

Frequently, business owners confuse the two categories and have difficulty choosing either FCL or LCL. Selecting the best container load indeed takes several considerations. Hence, before deciding which container load for your business, you need to understand fully the differences between the two categories, its pros and cons, and which one will be the best fit for your business according to its characteristics. Thus, to help you with the work, HAFA Cargo provides an essential guide for understanding all the basics about FCL and LCL in this article.

 

FCL vs. LCL: What Do They Mean?

 A Full Container Load (FCL) is a shipment that occupies the entire space without sharing it with other merchandise. In shipping practice, an FCL means a single container booked by the shipper exclusively for their cargo transportation only. The shipper doesn’t have to share the container with cargo booked by other shippers. This condition enhances security and simplifies logistics.

On the other hand, a Less Container Load refers to shipments that take up only a portion of the entire container and is shipped alongside other merchandise from other shippers in the same container. With that said, LCL comes in handy when the exporter doesn’t want to book a  whole container because the size of the cargo doesn’t demand that much space.

 

The Key Differences

When we talk about the differences between FCL and LCL, the fundamental lies in the fact that the buyer is sharing space in a container in LCL shipment, in contrast, under an FCL agreement, the buyer is renting the full container space instead.

 

Other than that, here are a few differences between FCL and LCL that you need to know:

  • Shipment Cost

Shipment cost is one of the significant factors to consider when deciding whether to ship FCL or LCL. Generally, FCL shipping rates are more volatile in comparison with LCL shipping rates, which tend to be more stable. However, there is no guideline in stone for either FCL or LCL rates. Thus, consider asking your freight forwarder for shipping rates advice.

  • Shipment Volume

LCL shipments are usually the better option for low-volume shipments of less than 15 CBM. As for FCL, any shipment can use the FCL agreement, regardless of the volume. However, FCL is usually used for shipments with a volume of 15 CBM or more.

  • Speed

LCL can take at least four days or more in total transit time. Other than that, additional days for LCL are required to account for unloading, sorting, and deconsolidation. On the other side, the full transit time for FCL is usually shorter compared to LCL because the containers are already unloaded from the vessel and delivered to the final destination.

 

Conclusion

There you have it: the meaning, the differences, and the pros and cons of both FCL and LCL. Still confused about FCL and LCL, and which one will suit your business needs? With more than 20 years of experience, HAFA Cargo offers high-quality ocean services from simple FCL shipments to splitting LCL shipments to multiple destinations. Thus, do not hesitate to contact our team at HAFA Cargo as we will provide solutions for any of your shipping problems.