FCL and LCL are shipping terms commonly used in the
international logistics industry when dealing with ocean freight cargo.
In Full Container Load (FCL) the shipper has the entire
container to himself to load his cargo onto and it is usually on a fixed rate
basis. Whereas in Less than Container Load (LCL) the container is shared among
more than one person. For example if you want to ship boxes internationally but
don’t have enough to fill out an entire container you can opt for LCL and pay
only for the space you use. A cargo shipping company dealing with sea freight
will have these 2 options and the shipper can opt for either depending on his
cargo size and various shipping freight rates available on the freight software.
LCL is very flexible as you only pay for what you ship and
so you don’t have to worry about costs if the shipment is smaller. However it
is more expensive per cubic meter as compared to FCL and the shipment takes
longer to be delivered.
In FCL you should make sure you are filling the entire
container with the cargo or else it would not be very cost effective if the
container volume is not used to the fullest. As mentioned earlier, FCL total
shipment time for FCL is lesser compared to LCL and it is cheaper per cubic
meter if used efficiently. There is lesser chance of damage to your goods since
you are not sharing the container with anyone and so fewer people come in
contact with the goods making it a safer option.
For startups and medium sized companies LCL could be a more
cost effective option if they are dealing with a smaller load size. Size of the
load to be shipped is one of the main factors in deciding between LCL and FCL.
Each method has its pros and cons depending on your shipping requirements.
