The Difference Between FCL and LCL Shipping
If you’re an importer you’ll need to make a decision on how to transport your goods to Australia. While air freight may be an option, it’s usually more economical for goods to be shipped to Australia from overseas destinations.
Shipping costs can vary depending on movements in the freight market, currency fluctuations and the type and volume of goods being shipped. Of all these factors, the volume of your goods will often determine the most cost-effective means of cartage between a Full Container Load (FCL) or Less than a Container Load (LCL).
To help you make the best decision for your import needs here’s an overview of FCL and LCL shipping and the advantages and disadvantages of each option.
FCL Shipping Vs LCL Shipping
As the name suggests, Full Container Load (FCL) means your shipment is the only one in the container. For larger loads, this is the quickest and most economical way to move cargo. As the container only holds your goods, it can be packed up and sealed by your supplier and quickly unloaded and delivered straight to you.
Less than a Container Load (LCL) means your goods are transported with the goods of other importers to make up a full container load. This is referred to as groupage or consolidation. For smaller loads, this is the most cost-efficient transport option, allowing you and other importers to share the cost of cartage where FCL is not a viable option.
Advantages & Disadvantages of FCL Shipping
Advantages:
● Cheaper per cubic metre rate than LCL
● Can be tracked directly through the shipping company
● Faster to load and unload at ports
● Less exposure to loss or damage compared to LCL
Disadvantages:
● Need large volume to be viable
● Can be a financial risk with a larger inventory
Compared to LCL, the cost per cubic metre is lower with FCL. However, to be cost-effective, your shipment needs to be more than 15 cubic metres (in a 20-foot container). If the volume is smaller than 15 cubic metres, then LCL may be a better option as you’ll be sharing the cost of transporting the container with other importers.
Advantages & Disadvantages of LCL Shipping
Advantages:
● Ideal for smaller shipments
● Presents a lower financial risk with a smaller inventory
● Reduced sourcing risk for new importers
Disadvantages:
● More expensive per cubic metre than FCL
● Risk of damage and exposure due to groupage and consolidation
● Can take longer to be unloaded
The main disadvantage of LCL lies in the extra handling that’s required along the way. When multiple shipments are included in the one container, various documents need to be processed and the goods require unpacking and sorting before they can be delivered to you. This can result in longer transit times and an increased risk of loss or damage.
Why You Should Use a Shipping Specialist
To minimise your shipping costs, it’s always best to engage the services of a reputable shipping specialist. Deciding when to use FCL or LCL for your import needs can be tricky, especially if your load is not quite big enough to fill an entire container but is on the large side for LCL. Even if you have a good idea of which option will best suit you, you may not know where to start in organising your FCL or LCL shipment.
Shipping specialists can work with you to organise a solution to meet your individual import requirements. Experts in the industry, they have the knowledge, experience and contacts to minimise your costs and get your goods on their way to you sooner.
For LCL shipments, shipping specialists organise for the consolidation of your shipment with others. On arrival, they take care of sorting and distributing the goods and ensure the container is returned before demurrage charges begin.
For FCL shipments, shipping specialists have the contacts to give you access to cheaper rates than a low volume buyer. They ensure all paperwork is completed correctly, minimise costs and can keep you updated on the progress of your shipment in transit.
Shipping specialists based in Darwin, PJs Customs can help you achieve the best possible unit cost for your goods, offering a range of FCL and LCL cartage options. Drop into our Darwin office, email us logistics@pjscustoms.com.au or give us a call on 1300 395 760 for more information.The Difference Between FCL and LCL Shipping
If you’re an importer you’ll need to make a decision on how to transport your goods to Australia. While air freight may be an option, it’s usually more economical for goods to be shipped to Australia from overseas destinations.
Shipping costs can vary depending on movements in the freight market, currency fluctuations and the type and volume of goods being shipped. Of all these factors, the volume of your goods will often determine the most cost-effective means of cartage between a Full Container Load (FCL) or Less than a Container Load (LCL).
To help you make the best decision for your import needs here’s an overview of FCL and LCL shipping and the advantages and disadvantages of each option.
FCL Shipping Vs LCL Shipping
As the name suggests, Full Container Load (FCL) means your shipment is the only one in the container. For larger loads, this is the quickest and most economical way to move cargo. As the container only holds your goods, it can be packed up and sealed by your supplier and quickly unloaded and delivered straight to you.
Less than a Container Load (LCL) means your goods are transported with the goods of other importers to make up a full container load. This is referred to as groupage or consolidation. For smaller loads, this is the most cost-efficient transport option, allowing you and other importers to share the cost of cartage where FCL is not a viable option.
Advantages & Disadvantages of FCL Shipping
Advantages:
● Cheaper per cubic metre rate than LCL
● Can be tracked directly through the shipping company
● Faster to load and unload at ports
● Less exposure to loss or damage compared to LCL
Disadvantages:
● Need large volume to be viable
● Can be a financial risk with a larger inventory
Compared to LCL, the cost per cubic metre is lower with FCL. However, to be cost-effective, your shipment needs to be more than 15 cubic metres (in a 20-foot container). If the volume is smaller than 15 cubic metres, then LCL may be a better option as you’ll be sharing the cost of transporting the container with other importers.
Advantages & Disadvantages of LCL Shipping
Advantages:
● Ideal for smaller shipments
● Presents a lower financial risk with a smaller inventory
● Reduced sourcing risk for new importers
Disadvantages:
● More expensive per cubic metre than FCL
● Risk of damage and exposure due to groupage and consolidation
● Can take longer to be unloaded
The main disadvantage of LCL lies in the extra handling that’s required along the way. When multiple shipments are included in the one container, various documents need to be processed and the goods require unpacking and sorting before they can be delivered to you. This can result in longer transit times and an increased risk of loss or damage.
Why You Should Use a Shipping Specialist
To minimise your shipping costs, it’s always best to engage the services of a reputable shipping specialist. Deciding when to use FCL or LCL for your import needs can be tricky, especially if your load is not quite big enough to fill an entire container but is on the large side for LCL. Even if you have a good idea of which option will best suit you, you may not know where to start in organising your FCL or LCL shipment.
Shipping specialists can work with you to organise a solution to meet your individual import requirements. Experts in the industry, they have the knowledge, experience and contacts to minimise your costs and get your goods on their way to you sooner.
For LCL shipments, shipping specialists organise for the consolidation of your shipment with others. On arrival, they take care of sorting and distributing the goods and ensure the container is returned before demurrage charges begin.
For FCL shipments, shipping specialists have the contacts to give you access to cheaper rates than a low volume buyer. They ensure all paperwork is completed correctly, minimise costs and can keep you updated on the progress of your shipment in transit.
Shipping specialists based in Darwin, PJs Customs can help you achieve the best possible unit cost for your goods, offering a range of FCL and LCL cartage options. Drop into our Darwin office, email us logistics@pjscustoms.com.au or give us a call on 1300 395 760 for more information.