Should I Choose Full Container Load (FCL) or Less-than-Container Load (LCL) for Ocean Shipping?

By Vincent Wen Photo:CANVA
Many customers frequently ship products for export, and sometimes the cargo size is nearly a full container. In these cases, they often ask which shipping option would be more suitable.
Actually, there isn’t a definite answer. Generally, for purely freight costs, FCL is based on 20GP/40GP container rates, while LCL is calculated by ton or cubic meter (CBM). The container weight limit varies by shipping company. A 20GP container can typically hold 25-30 CBM, while a 40GP can hold 55-60 CBM. Therefore, LCL shipping costs are usually cheaper depending on the route, but the overall cost might not always favor LCL.
With LCL shipments, since the goods must go to a consolidation warehouse for unpacking and redistribution, there are often additional local charges at the destination. Unlike FCL, where the container goes directly to the destination for unpacking, LCL involves extra handling at the consolidation station. This means there is a risk of loss if labels are missing, as other importers’ goods are also handled. The frequent handling also increases the chances of damage, making the transport riskier than FCL. The timeline is critical too, as LCL on certain routes, like West Africa & Latin America, may have extended transit times.
Typically, LCL charges are low at the origin port and high at the destination, creating the illusion of cheaper costs for exporters. In reality, we often see cases where high destination charges lead to abandoned goods and complaints, even resulting in lost customers for exporters.
In summary, if your shipment volume is below 15 CBM we would recommend LCL. if your shipment volume is around 20-25 CBM, we recommend discussing with your freight forwarder. Whether to use FCL or LCL based on your actual cargo conditions, rather than assuming LCL is always the best choice. Sometimes factors like cargo dimensions, stackable or not, packing ways and whether pallets are used can also influence the way to go.
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