Logistics Made Simpler – FCL and LCL

As a way to build knowledge of basics of Logistics and build logistics managers of tomorrow, we start with a Did You Know Series. Wherein, we would be creating short crisp content around the logistics industry, lets today look at the difference between FCL and LCL Shipment.

Seaborne trade accounts for about 90% of global trade, the cost-effectiveness and the volume which is possible via Sea Freight is the main reason for its high contribution to global trade. Recognized amongst the 80 moments that shaped the world by the British Council, the invention of shipping containers has been amongst the biggest push to the logistics industry. Ever since then, Shipping containers have become the heart and soul of Sea Freight as they allow for easier handling, are standardized and are theft-resistant. Amongst a wide array of containers, 3 most used types of containers –

1.      20 ft. Container (also called as 20’GP)

2.      40 ft. Container (also called as 40’GP)

3.      40 ft. high cube Container (also called as 40’HC)

It is these containers that then are loaded on Vessels which then sails to her destination. While a shipper is placing the order, shippers place an order depending on various factors such as type of shipment, factors such as Volume, Risk, Purpose, etc. The most common type of shipment placed by the shippers are–

1.      Full Container Load (Commonly referred to as FCL)

2.      Less Container Load (Commonly referred to as LCL)

FCL Shipments

FCL shipments are ocean shipments that occupy a full container (of any Size), thereby containers are exclusively used for a single shipment. FCL shipments are suited for larger quantities and allow the shipments to be loaded and sealed at origin by the supplier. As FCL shipments are bulk shipments, cost per unit is quite less and shipments are much safer as there is no requirement of consolidating. Additionally, FCL shipments are much quicker than an LCL shipment as they don’t require to be separately consolidated.

LCL Shipments

LCL Shipments are ocean shipments which occupy less container load and can be as small as 1 Cubic Meter. LCL Shipments are to be delivered to forwarder’s warehouse for containerization and the forwarder uses the same container to pack shipments from multiple shippers, this is called as freight consolidation. This puts cargo at higher risk for damage as it is being consolidated with other cargo at the

port of loading and again at the destination.

Despite the risks, LCL Shipments are useful in many scenarios, such as – Wherein you need to maintain Minimum Inventory Management, sending product samples to name a few.

MGH offers both LCL and FCL shipments across the globe. To place a booking please get in touch with our MGH Team.