If you’ve ever ordered multiple products from an online store, you might be familiar with these delivery options: You can either wait an extra day or two and get all of your items in one box, or you can receive each item as soon as possible.
Companies face a similar choice when shipping freight by sea. They can book an entire container for their product shipment, or they can share a container with other shippers. The first option, known as “full container load,” or “FCL,” shipping, is the quickest and most secure method. For larger shipments, it’s often a cost-effective option, too.
The best option will ultimately depend on your budget, delivery timelines, privacy and security needs, and how your shipment volume compares to standard container sizes.
Here’s how FCL shipping works and how it can help you increase efficiency and minimize costs for your next shipment.
What is FCL shipping?
Full container load (FCL) shipping is a sea freight shipping process in which each individual shipment occupies a single shipping container. Although containers don’t need to be completely full, they can’t contain shipments from multiple vendors. In an FCL shipment, one container is used to deliver cargo from one shipper to one consignee, or recipient.
Standard container sizes are 20 or 40 feet long—also referred to as twenty-foot equivalent units (TEU) and forty-foot equivalent units (FEU)—and eight feet wide by eight feet tall.
Here’s how FCL shipping works:
1. Container booking. A business books an FCL container through a freight forwarder, which is a third-party logistics (3PL) provider that coordinates shipments between shippers and shipping carriers.
2. Loading. The freight forwarder arranges delivery of the container to the pick-up point, which is typically the business’s warehouse or manufacturing facility. The business loads the container, and the freight forwarder arranges pickup and transportation to the port of origin.
3. Export customs. The shipment moves through export customs (in the case of international shipping), and port employees load it onto a commercial shipping vessel, typically a specialized container ship or cargo ship.
4. Transportation. The ship carries the cargo to its destination port.
5. Import customs. Destination port workers retrieve the container from the ship, and the shipment passes through import customs.
6. Final delivery. The freight forwarder ensures delivery of the shipping container to its final destination, such as a warehouse or distribution center. The business unloads the container, and the freight forwarder returns the empty container to the port.
Ocean carriers that provide FCL shipping include Maersk, MSC, COSCO, and Evergreen Line.
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FCL vs. LCL shipping
If your shipment perfectly fills a TEU or FEU, shipping FCL is the logical choice. But what if your routine shipments are smaller than standard containers? Or just a little bit larger? Do you have to pay for empty space?
Less-than-container load (LCL) shipping is an alternative to FCL shipping that consolidates multiple deliveries into a single container. While FCLshippers pay a flat rate to rent an entire shipping container, LCL shippers pay per cubic meter (CBM) and share container space with other shippers.
Although the cost per CBM is typically higher, you avoid paying for empty space you won’t use—making it a cost-effective option for those shipping small loads.
Advantages of FCL shipping
FCL shipping is a secure and cost-effective transportation option on waterways or the sea. Here’s an overview of the benefits:
Cost savings
FCL shipping is typically the most economical option for larger shipments. It costs less per CBM than LCL shipping—and both LCL and FCL shipping are more affordable than shipping via other modes, like air freight or truck.
Many businesses use FCL shipping to send large quantities of product, but remember that you don’t need to fill an entire container to send an FCL shipment. Sometimes it costs less to send a partly empty FCL container than it would to pay by cubic meter.
Fewer delays
FCL shipments are the fastest way to ship ocean freight. Unlike LCL shipments—which are opened and sorted at the destination port—FCL shipments often are delivered directly to the recipient. They also offer greater control over shipping timelines. The shipper loads the container and doesn’t have to worry about stops at other merchants delaying the shipment.
Reduced risk
FCL shipping is a lower-risk option than LCL shipping, offering end-to-end security. Whereas LCL shippers must send goods to a freight forwarder to be consolidated with other merchants’ shipments, FCL shippers can load and unload their containers on-site. This means no one outside of either company will touch the merchandise, unless customs officers choose to inspect the goods. Less handling means a lower risk of damage to container contents.
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Limitations of FCL shipping
FCL shipping is ideal for high-volume, no-rush shipments, but it has a few key limitations for those dealing in smaller quantities or requiring rapid delivery.
Smaller quantities
Although rates vary by carrier, FCL shipping is usually more expensive than LCL shipping for volumes less than 14 cubic meters. It can also lead to delays for smaller companies. If you plan to ship 20 cubic meters of goods via FCL and a manufacturing delay holds up half the cargo, you’ll either incur costs waiting for the other half or overpay to ship empty space. An experienced freight forwarder can quote you FCL and LCL prices and help you weigh the benefits of each option.
Urgency
Although FCL shipping is faster than LCL shipping, ocean freight shipping of any type takes longer than air freightshipping. Truck freight shipping can also be faster for some origins and destinations. You can typically expect FCL shipments to arrive between three weeks and six weeks from the shipment date.
How much does FCL shipping cost?
FCL pricing includes transportation costs, duties and taxes, and applicable additional fees. Here’s an overview of pricing components:
Transportation costs
Transportation costs include carrier fees and handling costs applied by the freight forwarder.
- Carrier fees. The carrier fee is the cost of moving cargo along specific sea freight routes, also known as shippinglines. Fees vary depending on container size, origin and destination, cargo type, and demand. Demand typically peaks before the holiday shopping season, so costs are highest between August and November.
- Handling costs. Handling costs cover additional services offered by the freight forwarder, such as retrieving a shipping container from its pick-up point and transferring it from the port of arrival to its final destination.
Destination port fees
Destination or terminal fees can include unloading costs and surcharges. You can also face demurrage and detention fees if your freight forwarder doesn’t pick up your container from the port on time and return it in a timely manner. Here’s an overview:
- Terminal charges. Many ports apply a fee for unloading cargo on arrival. If you ship to a particularly busy port, you might face a congestion surcharge.
- Demurrage charges. Demurrage charges apply if your freight forwarder doesn’t pick up your container from a destination port within a specified timeframe—typically four days from when the container arrives at port.
- Detention charges. Once your container has been picked up from the port, you have a limited amount of time to unload and return it. This window is typically four days, and you can owe detention charges if you return the container late.
Duties and taxes
Duties and taxes are government fees that apply to shipments entering a country. They can include import taxes, customs clearance fees, and tariffs. If you’re shipping items to the US, you’ll also need to obtain a customs bond—a form of duty and tax insurance—for any shipment valued at more than $2,500.
FCL shipping FAQ
What is FCL in shipping?
Full container load shipments—or FCL shipments—are sea freightshipments in which one shipper uses an entire shipping container. FCL shipments are a cost-effective way to transport large volumes of product.
What is the difference between FCL and LCL?
FCL and LCL are both shipping terms, but full container load shipping (FCL shipping) involves one shipper and consignee per shipping container. Less-than-container loadshipping (LCL shipping) combines several different shipments in one container. Many businesses choose to ship LCL for smaller loads and FCL for larger ones.
Can FCL be used by only one shipper?
Yes. FCL shipping moves cargo from one shipper to one consignee. You can choose LCL shipping to share container space with other shipments.
