If you've looked into shipping cargo by sea, you've likely had to decide whether you’d use Full Container Load (FCL) or Less than Container Load (LCL) shipping. During transport, sea freight is kept safe within crates or containers; when you choose whether you want your cargo to be FCL or LCL shipped, you're deciding how the cargo is stored in the container.
Making the wrong choice about using FCL or LCL for your exports can mean damaged cargo, increased costs, and longer delivery times. That said, the correct decision for your business will depend on your products and priorities, so there aren’t any easy answers. In this article, we'll explain the differences between FCL and LCL shipping. Then, we'll showcase the advantages of each to help you decide which is best for your exports.
The Differences Between FCL and LCL Shipping
As the name suggests, FCL shipments are shipments that occupy the entire space of a container. FCL shipments don't share space with any other merchandise.
In contrast, LCL shipments (also known as groupage) refers to a shipment that only takes a portion of the container. LCL shipments are shipped alongside the merchandise of other shippers.
Advantages of FCL shipping
There are several benefits to FCL shipping when exporting:
- FCL shipments don't need to be loaded and unloaded alongside other shipments, saving time in transit.
- By sealing containers at the factory, there are fewer opportunities for damage.
- For larger shipments, FCL shipping can save you money due to having a flat fee.
Advantages of LCL shipping
Alternatively, there are gains to LCL shipping:
- By shipping fewer goods more frequently, you can reduce costs on inventory space.
- LCL shipping is exceptionally flexible. Even during peak times when vessel capacity is near-full, LCL shipping can more easily allow for shipments.
- As freight costs are based on cargo volume and not a flat rate, you can quickly adapt your expenses to your needs.
Is FCL or LCL Shipping Better For My Cargo?
It depends what it is you're prioritising. FCL and LCL shipments have their advantages and disadvantages, so you should decide based on what matters most to you and your business, especially when exporting to new countries. To help, we've outlined the most common reasons people choose one over the other.
Shipment volume
In general, LCL shipments are better for low-volume shipments. If your shipment takes up less than thirteen cubic meters, it might be best to choose an LCL shipment over an FCL shipment. In comparison, FCL shipments tend to be cheaper when the shipment takes up space that's fourteen cubic meters or more.
Cargo security
Usually, FCL shipments will be more secure due to having exclusive rights to the entire container. As the container will not be in contact with other shippers, there isn't nearly as much of a risk of damage or contamination. With that said, LCL shipments may be the correct choice for specific shipments, as containers are packed extremely compactly, leaving little room for movement.
Shipment cost
As a rule of thumb, LCL shipments will be cheaper for low volume shipments (below thirteen square meters), and FCL will be more affordable for high-volume shipments (fourteen square meters and above). However, this is only a hard and fast rule, and under certain circumstances, things can become more complicated. If you're unclear about which would cost more, you should talk with your freight forwarder.
Urgency of shipment
Most of the time, FCL will be the better option for urgent shipments. LCL shipments can be prone to delays due to the handling, loading, and unloading necessary during the shipping process. However, it may be easier to book an LCL shipment over an FCL shipment during high congestion periods such as peak season.
FCL and LCL shipments have various advantages and disadvantages, and choosing between them can depend on a myriad of factors. If you're uncertain about which is right for your exports, we'd be happy to answer any questions you have. WTA UK has both FCL and LCL sea freight services; whether you are exporting to Canada, the USA, Australia or China, we can work with you to outline the best options for your exports.
