Difference Between FCL & LCL
What is FCL [Full Container Loads]?
The word FCL, as the name implies, refers to a shipment that takes up the whole space of a container without sharing cargo space with another consignee and is classified as full container load. These shipments are controlled by a single entity or party. FCL choices are appropriate for larger, bulkier things such as garden furniture, toys, or valuable objects.
What is LCL [Less Than Container Load]?
LCL refers to shipments that only convey a portion of a container and are sent in conjunction with products from multiple shippers, therefore sharing the overall container load until it arrives at the destination port. LCL is an ISO (International Organization for Standardization) word that refers to a container load that involves numerous consignees or importers.
Differences Between FCL and LCL
Both FCL and LCL are acronyms that refer to the standardization and usage of shipping containers in the logistics business and are frequently used by freight forwarders. When opposed to LCL shipments, FCL shipments need substantially less handling because there is no need to combine and deconsolidate the cargo of another consignee. While LCL provides chances for delivering smaller loads, smaller e-tailers may prefer to ship lesser volumes of items initially to assess where improvements may be made in the supply chain before raising volumes to FCL.
When you consider that the total value of annual global shipping trade reached over 14 trillion US dollars in 2019, that translates to 11 billion tones of goods transported by ship (yearly), representing an impressive 1.5 tones per person based on the current global population, shipping's ability to transfer goods and materials from where they are manufactured and produced to where they will be ultimately consumed, underpins modern life.
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LCL is commonly used for shipments with a flexible arrival date at the port, as those shipments are more likely to face delays owing to the various commodities from different consignees held in a single container. When opposed to FCL, one consignee's products may be scheduled to arrive on a certain date with a lesser amount of risk. This enables FCL shippers to correctly arrange their shipments based on the urgency of the items, resulting in a higher degree of customer satisfaction while fulfilling the industry's rising demand.
Shippers want their cargo to arrive at the assigned port safely and securely, with no damaged, missing, or defective items with the right HS code, for a variety of reasons. This is another deciding element when it comes to container type, as FCL shipments are more secure because the shipper has exclusive rights to the full container.
What could be the better option LCL or FCL?
Both solutions have advantages and disadvantages. Only by knowing the major distinctions between each ocean freight option, as well as the specific restrictions of your cargo, such as time, money, or availability, will you be able to make an informed decision on the best type of shipment choice.
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