LCL Vs FCL Shipments: Which Option Is Best for You?

One of the key decisions for international shipping is deciding the type of container that will be used for the transportation of goods. Businesses dealing with international shipments are confused between two shipment options: LCL (Less Than Container Load) and FCL (Full Container Load). These two options are very different when it comes to their advantages and limitations. You must understand the concepts behind LCL and FCL to make an informed decision that is aligned with your budget and the timeline for the cargo delivery.
In today’s article, we will discuss LCL and FCL shipments, the main differences between them, and which options are best for your business needs.
What Is LCL and FCL Shipping?
LCL full form: Less Than Container Load
LCL is a shipment option where numerous shippers use the same container to transport various shipments. If your cargo is not big enough to fill the whole container, you can explore the option for LCL to share the space with other shippers.
As multiple shoppers are sharing an LCL, the shippers also share the total cost of transportation. Hence, this becomes one of the most affordable and easiest ways to ship out smaller consignments. However, there is also a downside to sharing the container with other shippers, which is the total time taken to deliver. Even a little consignment takes far more time than FCL.
The timeline for delivery increases, mainly because several cargoes need to be handled, loaded, and unloaded. Owing to the extra processes that take place, the requirement for multiple paperwork also increases.
Another reason why LCL is a lengthy process is that the ship may have different consignments, which can vary in terms of categories. This increases the overall time for customs clearance and dispatch.
FCL full form: Full Container Load
FCL is a container that is only used for one customer. In the FCL shipment option, the single shipper occupies the whole container. It is regardless of whether the container is fully loaded or not. The shipper is under no obligation to swap or share the cargo container with any other shipper for any other shipment.
The non-sharing module of the full container load increases the safety of the cargo on board. It also helps to streamline the management of freight transportation. If you are a shipper who has a considerable volume to ship, you can find the full container load option much more feasible.
Also, there is no obligation to load the container completely. Even if it is half-filled or partially filled, it is not an issue as only one shipper has the occupancy right for that container. This is mainly because the cargo does not need to be emptied and unloaded at several locations. Also, since there are few or no stops for delivering the shipment, the FCL shipment has a faster delivery rate than the LCL.
Related – How Freight Charges are Calculated and What Affects Them?
Difference Between FCL and LCL
FCL and LCL are two distinct shipment options for businesses that are into international freight shipping. Below are the differences between FCl and LCL in various aspects:
Comparison Aspect | FCL (Full Container Load) | LCL (Less Than Container Load) |
Cost of Shipment | The charge is for the full container, so it is a little more expensive for one shipper. | As the complete cost of the LCL is borne by several shippers, the overall cost is divided. Hence, the cost for shipping via LCL is less per shipper. |
Shipment Volume | FCL is much more suitable if you are looking to ship large goods. The shipment should ideally be over 15 m³. | LCL is more cost-effective when the shipment is small. The shipment should ideally be less than 15 m³. |
Use of Container | The FCL container is completely used only for your shipment. | An LCL container is basically used for shipments from various shippers. It is a shared container. |
Transportation Time | As the container has the shipment of only one shipper, it takes less time as the goods are transported directly. | LCL shipment option has multiple consignments; hence, multiple stops are taken to deliver different goods. Hence, it takes more time to transport the goods. |
Safety and Security | As the shipment belongs to you only, it does not get mixed up, and hence there is better security. | There may be chances of goods being exposed to potential damage or contamination via shipments from other shippers. |
Risk of Delays | Businesses using FCL for the shipments are at a lower risk of delays as there is only one shipment from the origin to the destination. | Businesses choosing LCL for their international shipments may face more delays as there are various shipments that have to be picked, loaded and delivered. |
Suitability | FCL is more suitable for you if you have regular shipments or ship large consignments | LCL is suitable for small businesses that have smaller consignments or ship less often. |
LCL Vs. FCL: Which One Should I Choose?
In order to choose between LCL and FCL, you can consider the following factors:
- Shipment volume: If the volume of the goods exceeds 15 m³, then FCL is a better choice.
- Budget: Compare the cost for LCL and FCL and choose what fits your budget. Oftenly, if your budget is less, then LCL is an apt choice.
- Cargo Type: If your shipment has more fragile, perishable or valuable items, then FCL can offer you better security and safety.
- Transit time: If you need your goods to be delivered quickly, FCL is an ideal choice as it offers minimum delays.
- Customs: Explore the customs clearance processes that LCL and FCL shipments offer before finalising. Usually, LCL has more documentation and procedures.
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Conclusion
If you are looking to operate internationally, you must understand the difference between LCL and FCL. LCL is much more suitable for small businesses that ship less often. Meanwhile, FCL is more suitable for businesses shipping consignments more often and mostly having large consignments. In order to choose the right option for you, you must first understand the nature of your shipment. Then, you must consider factors like your budget or the timelines that you need to follow. If you have enough budget and need delivery on a priority basis, it is better to opt for an FCL shipment. If your budget is low and you’re only looking to ship out smaller cargo, then choosing LCL is ideal for you.
Suggested read – FCA vs FOB: Key Differences in Shipping Terms
FAQs About LCL and FCL
Is LCL more cost-effective than FCL?
Yes, as the LCL shipment is on a shared basis, it is much more cost-effective.
Which option is best if the shipment contains fragile items?
If the shipment contains fragile items, FCL is a better choice as it involves minimum handling.
Can I switch between LCL and FCL for different shipments?
Yes, it is entirely up to you. You can switch between both based on the shipping size, urgency and budget.
Which shipment offer takes more time to deliver the goods?
LCL shipment takes more time, as several consignments are to be loaded, handled, and delivered.
Does FCL offer faster delivery?
Yes, as the FCL option only has one type of shipment to be delivered at only one location, the delivery is expected to be faster.