FCL is a term used in sea freight to describe shipments that consist of a “full container load,” or a shipment that only has one consignee in a single container and is not being shared with other shippers. Standard container sizes are 20’ and 40’ containers; both sizes offer standard and high cube sizing.
When working with FCL, the buyer is renting the whole container space at a fixed rate. Aside from the fixed ocean freight cost, the buyer also needs to consider some additional fixed costs, such as the handling charges and chassis fee.
The FCL Agreement is common for large-volume shipments because of the following reasons: Less risk of cargo being damaged, cheaper per volume rates, faster lead times than other forms of sea shipments.
Risk
With all types of shipping, risks are inevitable. While FCL does have the benefit of having significantly lower overall risks, we have outlined the potential dangers below for shippers to be aware of.
In an FCL shipment, if cargo is not loaded into a container properly, the risk of cartons toppling during transit or the unloading process could lead to damage or injury. Buyers need to discuss the carton loading plan with their sellers and ensure the warehouse workers loading the cargo stick to the plan. In the event, a seller is unfamiliar with loading products in a container, the loading risk increases. When in doubt, consult with your freight forwarder to help you plan your loading plan.
Once the cargo is loaded, the container is sealed before it goes on to the ship for departure. Unless a container examination is required, the doors of the container will not open until it arrives at the destination port. FCL has the advantage of significantly less handling compared to LCL shipments since there’s no need to consolidate and deconsolidate other shipper’s cargo. Because of this, FCL has less risk of damage during the logistics process.
Cost
FCL can still be cheaper than LCL, even when the containers are not filled to their full capacity. When a shipment has a total volume greater than 14 CBM, FCL becomes a viable option. For example, even though a 20-foot container can hold up to 33.08 CBM if a shipment consists of 15 CBM, there is a high likelihood the cost to ship a 20-foot container would be less expensive than sending 15 CMB in an LCL agreement.
Since the space for the FCL is usually lower compared to LCL, the shipping cost is generally cheaper, making it a more economical option even though the whole container wasn’t occupied to its maximum capacity. It is best always to compare the costs of shipping LCL and FCL.
The FCL and LCL calculate the freight cost based on the volume (or every 1,000 kilograms per CBM, whichever is higher) of the shipment. Because of the way this rate is calculated, FCL could equally be a viable option for transporting heavy products compared to shipping them via air method.
Transit Time
The total transit time is also an advantage for the FCL agreement when compared with LCL because the whole container is transported directly to the final destination. Direct shipments decrease the added time required to deconsolidate an LCL shipment before fulfilling the last leg of the delivery to the buyer’s final locations. FCL can save on average, 4 to 7 days, when compared to an LCL shipment.
Finding the Right FCL Options for Your Business
While it is possible to arrange FCL options directly with an ocean freight carrier, working with a freight forwarder has its advantages. A freight forwarder may be able to help you negotiate a better rate, especially if you’re planning on a regular volume of shipments. Additionally, a forwarder can assist with storage and help arrange for convenient, scheduled delivery to and from your business.
If you’re looking for assistance with your FCL solutions especially export from China, HAKOVO would love to talk with you. We’ll discuss your business needs, lay out your options, and connect you with the right solution.