Whether you know it or not, in the world of freight forwarding services, there are two common abbreviations: FCL and LCL. It turns out that many people are still unfamiliar with the meanings of FCL and LCL.
Shipping itself is the process of moving goods from one place to another. When shipping by sea, goods are generally transported on cargo ships inside containers.
Most Indonesians are certainly familiar with shipping, but some people are still unaware of the specifics of the terms FCL and LCL. It’s important to note that both FCL and LCL involve shipping by sea, but the two have several differences—both in definition and in practice.
In this article, we’ll discuss the definition of FCL and explain what LCL is.
Definition of FCL
FCL, or Full Container Load, might be interpreted by those unfamiliar with the term as a “fully loaded container.” If we look at the definition of FCL itself, it should be clear what it means.
FCL refers to a container shipping service where the shipper’s goods occupy an entire container, without being mixed with goods belonging to others.
An FCL shipment is typically equivalent to approximately 20 metric tons (MT) when using a 40-foot container, and 10 metric tons (MT) when using a 20-foot container.
When should we use the FCL method?
Some people may not yet know when to use the FCL method.
If you’re unsure when to use FCL, check out the explanation below.
For example, if you have a large quantity of products or goods, you’ll need a large-scale shipping service—not something like postal services or similar options—because the shipping costs would be much higher. Using the FCL method can help you save on operating costs.
So, now you understand when to use the FCL method, right?
Now, let’s discuss LCL.
Definition of LCL
Every shipper naturally wants low rates for their shipments. The solution is to use the LCL shipping method. LCL, or Less Container Load, is the opposite of FCL; with LCL, the container is loaded with a smaller volume of cargo.
You are required to know the dimensional calculations for the cargo being shipped. These calculations for consolidated shipments are based on global standards; if the shipment volume does not exceed half the container’s volume (a standard 20-foot container has a volume of 33.2 m³, while a 40-foot container has a volume of approximately 60 m³), LCL consolidated shipping can be used.
With LCL shipping, the shipper does not have to rent an entire container but simply pays for the cargo based on its cubic volume. This involves shipping goods in a single full container that combines shipments from multiple shippers. Thus, one container holds a mix of goods owned by different people. This is what distinguishes LCL from FCL.
Advantages of the LCL shipping method:
A shipper does not need to rent a full container, which helps save on shipping costs, and the rate is calculated based on volume.
Additionally, the LCL shipping method has several drawbacks, namely that shipments can take a relatively long time due to complex inspection procedures.
When the shipment arrives at the port, shipments from different shippers must be matched with the correct documentation for each item and then sorted, which carries the risk of goods being mixed up with those of other customers. Consequently, the shipping process takes even longer.
That may be one of the drawbacks of the LCL shipping method.
There is a specific LCL procedure: first, cargo from multiple shippers destined for various consignees is received by the carrier.
Next, the carrier handles the process of stuffing the cargo into containers at the carrier’s expense. The carrier then loads the containers—which have been filled by the shippers (or possibly by a single shipper)—onto the vessel.
Upon arrival at the destination port, the containers are unloaded from the vessel and transported by the shipping line for stripping.
Conclusion
Well, hopefully the explanation above helps you understand the concept of FCL. Thank you.
Further information about Oaktree software can be found here.