How to Choose Between LCL and FCL for International Sea Freight
When arranging international sea freight, choosing between LCL (Less than Container Load) and FCL (Full Container Load) depends on various factors related to the goods and business needs. FCL is suitable when the volume of goods is sufficient to fill a full container (usually 20-foot or 40-foot). One of its main advantages is lower risk of damage, as the goods are not mixed with other shipments, reducing the chance of collision or contamination during loading and unloading. FCL also offers faster transit times because the container does not need to be consolidated with other goods at the origin or deconsolidated at the destination, saving time in the logistics process.
Cost is another consideration for FCL. Although the total cost of a full container is higher than LCL for small shipments, the unit cost per cubic meter is lower when the container is fully utilized. For example, shipping 15 cubic meters of goods in a 20-foot container (which can hold about 28 cubic meters) may be more cost-effective than LCL if the goods can fill the container or if the enterprise can consolidate multiple orders.
LCL is more suitable for small-volume shipments, typically less than 10-15 cubic meters. It allows businesses to share the cost of a container with other shippers, reducing the financial burden for small quantities. LCL provides flexibility for businesses with irregular or small order quantities, as they do not need to wait until enough goods are accumulated to fill a container. However, LCL involves more handling, as goods are consolidated at a warehouse before shipping and deconsolidated upon arrival, increasing the risk of damage and extending transit time by 7-10 days compared to FCL.
Other factors to consider include the nature of the goods: high-value or fragile goods may be better suited for FCL to reduce handling. Additionally, the destination port’s efficiency in LCL operations matters; some ports have more experience and faster processing for LCL shipments, affecting the overall logistics efficiency.