Less than Container Load (LCL) Shipping

Definition: Clearly define LCL shipping – multiple shippers share space within a single container.

Key Characteristics:

• Consolidation: Your goods are combined with shipments from other shippers at a Container Freight Station (CFS).
• Deconsolidation: At the destination CFS, the container is unloaded, and individual shipments are separated.
• Cost Structure: Typically based on the volume (cubic meters) or weight of your shipment.

Advantages of LCL:

• Cost-Effective for Smaller Shipments: You only pay for the space your goods occupy.
• Ideal for Low-Volume Shippers: Enables businesses to ship smaller quantities without needing to fill an entire container.
• Increased Flexibility: Allows for more frequent and smaller shipments.

Disadvantages of LCL:

• Potentially Longer Transit Times: Due to the consolidation and deconsolidation processes.
• Higher Risk of Damage: More handling involved in the process.
• Additional Handling Charges: CFS charges at origin and destination.
• Potentially More Complex Documentation and Customs: Since an LCL container contains shipments from multiple shippers, the documentation and customs clearance process can sometimes be more intricate. Each individual shipment within the container needs its own documentation, which can lead to potential delays if any single shipment faces issues.
• Better suited for goods secured on more durable pallets (e.g., wooden, steel, plastic) that can withstand multiple handling stages in consolidation and deconsolidation.

When to Choose LCL:

• Your shipment volume is not large enough to fill a significant portion of a container for a single buyer or destination.
• Cost is a primary concern for smaller shipments.
• You don't have an urgent need for rapid transit.
• You are shipping high-value goods where individual buyer orders are typically for smaller quantities. After all, no buyer in the world would likely give you an order to supply a container full of diamonds! In such cases, consolidating your shipments with others via LCL is the most practical and cost-effective solution. And of course, for peace of mind, don't forget to take out appropriate insurance coverage for your valuable cargo!

Full Container Load (FCL) Shipping

Definition: Clearly define FCL shipping – one shipper has exclusive use of an entire container.

Key Characteristics:

• Exclusivity: The container holds only your goods.
• Potentially Faster Transit: Less handling as goods are loaded and sealed at origin and unloaded at the final destination.
• Cost Structure: Often a flat rate per container, regardless of the exact volume (up to the container's capacity).

Advantages of FCL:

• Potentially Lower Cost per Unit (for large volumes): Even though the initial cost is higher, the cost per item can be lower if the container is well-utilized.
• Greater Security: Reduced risk of damage or loss due to less handling.
• Faster Transit Times: Generally quicker as there's no need for consolidation or deconsolidation.
• More Control: You control the loading and unloading process.
• Potentially Simpler Documentation and Customs: While all international shipments require documentation, FCL often involves a single set of documents for the entire container, potentially streamlining the customs process compared to multiple LCL shipments within one container.
• Well-suited for floor-loaded cartons or goods on less robust pallets (e.g., corrugated/honeycomb) due to minimal handling.

When to Choose FCL:

• Your shipment volume is large enough to fill a significant portion of a container.
• You prioritize faster transit times.
• You require greater security for your goods.
• Your goods are fragile or high-value.

How to Choose Between FCL and LCL

Side-by-Side Comparison: FCL vs. LCL

Rule of Thumb:

Generally, there's a volume threshold where shipping via FCL can become more cost-effective than LCL, even if your cargo doesn't completely fill the container. This breakeven point depends on various factors, including freight rates, origin and destination charges, and the specific container size. For instance, with a 40-foot high-cube container, the breakeven point is often around 42 cubic meters. Shipping volumes below this threshold might typically be more economical with LCL, while volumes exceeding it often favor FCL due to the flat-rate structure.

Leveraging LoadViewer for Efficient FCL Shipping

For shippers and consolidators primarily dealing with Full Container Load (FCL) / Full Truck Load (FTL) shipments, LoadViewer offers valuable tools to optimize your logistics.

LoadViewer helps you achieve the best fill levels within your containers or trucks, maximizing space utilization and potentially reducing the need for additional containers.

When your order volume necessitates multiple containers, LoadViewer can analyze the load distribution across these full container loads (FCLs). By optimizing the packing within the primary FCL shipments, LoadViewer can help minimize the remaining volume of goods that don't fit into a full container. This remaining, smaller volume can then be strategically shipped as Less than Container Load (LCL). This approach allows you to maximize the efficiency of your FCL shipments, taking advantage of their flat-rate cost structure for the bulk of your goods, while also cost-effectively handling the remaining, smaller volume via LCL, ensuring that you are not paying for significantly underutilized container space in a final FCL shipment.