Deciding Between LCL and FCL: A Beginner's Guide for Small Exporters

Exporting products overseas for the first time brings up many questions for small and medium-sized enterprises. One key decision is whether to ship using full container loads (FCL) or less than container loads (LCL). While the shipping acronyms may seem complicated, making the right choice between the two is important to maximizing efficiency and costs.

The Basics: What Are LCL and FCL Shipping?

• Less than container load (LCL) shipping consolidates your freight with other customers’ cargo in a standard shipping container. You only pay for the portion of the container that your goods occupy. This method works well if you have small or infrequent export orders.
• Full container load (FCL) shipping uses an entire sea container just for your goods. This allows greater control and security, but requires sufficient volume to justify the cost. FCL works best for frequent large shipments.

Determining Between LCL and FCL

Choosing between LCL and FCL depends on your specific situation as an exporter. Here are key factors small businesses should consider:

• Shipping Volume – How much do you transport monthly or annually? What are your projections for export growth?
• Cost and Budget – LCL offers freight savings for lower volumes, while FCL benefits increase with scale.
• Time Sensitivity – Are expedited transit times essential? FCL shipments generally offer faster port-to-port deliveries.
• Customs Process – Declaring consolidated LCL goods takes more coordination upfront which can cause delays.
• Control Over Shipping – FCL provides greater reliability, security and traceability during transport and port handlings.

In summary, FCL works well for SMEs regularly exporting full container volumes or time-sensitive products, while LCL suits growing businesses with less frequent or smaller orders. The tipping point between LCL and FCL can be analyzed based on your trade lanes, product specifics and business growth outlook.

Receiving Guidance as an SME Shipper

At Tech Cargo, we offer SME exporters personalized guidance on matching the best shipment method to their needs, along with:

• Shipment optimization analysis
• Ongoing advice on maximizing supply chain efficiency
• Management of customs documentation

Our hands-on brokerage provides end-to-end support so small businesses can focus on growing internationally.

Ready to determine whether LCL or FCL is a better shipping solution for expanding your export operations? Reach out today to start a conversation.