What is FCL? FCL vs. LCL which is Better?

What is FCL?

FCL means Full Container Load. FCL is ocean shipment in which the cargo occupies a full container (of any size) .For example, 5FCL refers to 5 full containers of goods. The shipper is responsible for loading containers, counting, stowage and sealing of shipments. The unpacking of the FCL is generally handled by the consignee. However, it is also possible to entrust the carrier to unpack at the freight station. However, the carrier is not responsible for the damage or difference of goods in the container. Unless the cargo owner proves that it is indeed the carrier's liability accident, the carrier is responsible for compensation. The carrier takes the container as the handover unit for FCL. As long as the appearance of the container is similar to when it was received and the seal is intact, the carrier has fulfilled its responsibility for carriage.

What is LCL?

LCL means Less Container Load, LCL is an ocean shipping term, it means less than one container. This kind of cargo is usually collected by the carrier separately and collected at the container freight station or inland station, and then two or more tickets are assembled in one. In the container, it is also required to be unpacked at the destination container freight station or inland station and delivered separately.

What is CY?

CY is short for Container Yard - this is where the containers are stacked.

For FCL, the master B/L or house B/L usually indicate " CY-CY " or  "FCL-FCL ".

What is CFS?

CFS is the abbreviation of Container Freight Station - this is a place for handling LCL cargo, unpacking, distributing and handing over LCL cargo.

For LCL, the master B/L or house B/L usually indicate "CFS-CFS" or  "LCL-LCL".

Freight Container Shipping

Container freight is divided into two types: FCL and LCL, so the handover methods are also different. Looking at the current international practices, there are roughly the following four categories:

（1）FCL/FCL  -  (CY-CY）

Shipper loading container, hand it over to the carrier by means of full container load. Consignee receives the goods in full container, and unloading and unpacking it by itself. FCL shipping by sea is basically in this way. This FCL shipping method is the most common and the most efficient.

（2）LCL/LCL -  (CFS-CFS）

The Shipper delivers the goods to the Freight Forwarder by the method of Less Container Load, and the Freight Forwarder is responsible for loading the container; the destination port agent of the Freight Forwarder is responsible for unpacking and unloading, and then delivers it to the final consignee by the method of LCL.

（3）FCL/LCL - (CY-CFS）
For example, a shipper has a batch of goods that is enough for a full container, but this batch of goods needs to be distributed to multiple different consignees after arriving at the destination port. At this time, the FCL/LCL method can be used for consignee.

The shipper delivers the goods to the carrier by the method of FCL, and then the carrier or the freight forwarding company issues multiple separate orders or small orders according to different consignees; the destination port agent of the carrier or the freight forwarding company is responsible for unpacking and unloading the goods, and distribute the goods according to different consignees, and then deliver them to the final consignee by LCL method.

（4）LCL/FCL  -  (CFS-CY）

Multiple Shippers deliver the goods to the carrier in the LCL method, and the carrier or freight forwarding company assembles the goods of the same consignee together into an FCL; at the destination, the carrier or freight forwarding hands it to the final consignee in the FCL method.

Marks are of Different Importance for FCL and LCL

The FCL cargo marks are relatively not so important and necessary, because the entire transportation and handover process is based on the container, and there is no unpacking and distribution in the middle. Of course, this is relative to all parties involved in the logistics process. As for whether the final consignee cares about the mark, it has nothing to do with logistics.

The LCL cargo marks are very important, because the goods of many different shippers share a container, and the goods are mixed together - if the mark is not clear, it is difficult to distinguish the goods, and it is very easy to be confused and make mistakes, so the LCL mark is very important.

It is important that the freight forwarder not only distinguishes the customer's mark, but also affixes a shipping label with important information such as the bill of lading number (main order number and sub-bill number), packing box number, etc. When the agent at the port of destination unpacks and distributes the goods, they will pick up the goods in strict accordance with different sub-bill numbers and consignees, and also release the goods strictly according to the invoice number (sub-bill number).

FCL vs. LCL which is Better?

FCL and LCL both have pros and cons. FCL gave birth to the LCL industry because of the demand to ship a smaller volume of cargo by sea, without the need to pay for the full container space. Understanding the differences between the two ocean freight agreements will give the buyer a better knowledge of which is the best method to be used depending on the situation and volume of the shipment.

The Benefits and Drawbacks of FCL/LCL Shipment:

Benefits:

• FCL shipments do not need to be loaded and unloaded with other shipments, saving shipping time.
• Sealing containers at the factory means less handling and less chance of damage.
• The unit price of LCL is high, so for larger shipments, paying the FCL flat fee can save money
• Air freight is the fastest shipping method. But if you have the time, you will save a lot by choosing FCL.

Drawbacks:
• Shipping large quantities means finding and paying for more inventory space.
• For small loads (about 13 CBM or less) FCL may be more expensive.
• Delivering a complete container means you need equipment and people who can handle the job, which not every factory has.
• When you FCL shipping, delivery can become more complicated as you will be dealing with a large amount of goods in a short period of time.

From STU Supply Chain: https://stusupplychain.com/fcl-vs-lcl-shipping-differences-and-choose.html