Shipping Knowledge | the Difference Between FCL and LCL!

Definition of LCL and FCL

LCL, the full name is LCL (Less Than ContainerLoad). It means that the cargo owner consigns less than the whole container, and the agent (or carrier) sorts out the goods, and assembles the goods destined for the same destination into the same container. Since there are different cargo owners' goods assembled together in a box, it is called LCL.

LCL can be divided into direct consolidation or transfer consolidation. Direct consolidation means that the goods in the LCL containers are loaded and unloaded at the same port without unpacking before the goods arrive at the destination port, that is, the goods are in the same unloading port. The transportation period is short, convenient and fast. Transshipment means that the goods in the same container are transported to different ports separately. Because transshipment flights such as unloading and distributing the containers at the transshipment port are required, the time limit will be relatively slow. Attention should be paid to this when consolidating the container.

The whole box is the whole cabinet, which is called FCL (full container load). FCL is the opposite of LCL. Only one consignor will ship the cargo to the destination port. Therefore, the entire transportation process is relatively easier than LCL. For the whole container of goods, the consignor is responsible for packing, counting, stowage and lead-sealed freight. The unpacking of the FCL cargo after it is transported to the destination port is generally handled by the consignee.

The difference between FCL and LCL is mainly reflected in the following aspects:

Distinction of form

There are three forms of LCL:

1. One consignor corresponds to multiple consignees.

2. Multiple shippers correspond to one consignee.

3. Multiple consignees correspond to multiple consignees.

FCL: one consignor corresponds to one consignee.

As long as the container's appearance is similar to that when the container is received and the lead seal is complete, the carrier has fulfilled the responsibility of the carrier. Therefore, the bill of lading for the transportation of the whole container usually requires the clause of "the shipper's packing points and seals".

Process difference

LCL cargo: After receiving this kind of cargo, the carrier classifies it according to its nature and destination, and assembles the cargo of the same destination and nature into the same container for transportation.

FCL cargo: the goods that the consignor is responsible for packing, counting, filling out the shipping note, and sealing the goods by the customs. The unpacking of the whole container is generally handled by the consignee, or the carrier can be entrusted to unpack the container at the freight station, but the carrier is not responsible for the cargo damage or difference in the container, unless the cargo party proves that it is the damage caused by the carrier's liability accident. The carrier is responsible for compensation.

The difference between shipping and customs declaration

Shipping

Because the shipping and transportation of containers is also a professional link in the foreign trade process. Most foreign trade companies will not participate in this step, but directly entrust a special freight forwarding company to handle it. Because the situation of freight forwarding companies is not the same, some only do direct sales, and some do switch sales. Therefore, we must ask clearly when communicating with freight forwarding companies.

In the general foreign trade delivery process, if it is in the form of LCL, the goods are directly transported to a designated warehouse, and the freight forwarder will arrange for us to pack a container in a unified manner. However, the whole container has an additional step of picking up the container. We need to pick up the container and come to our factory to load the goods. If the forwarder company does not provide us with customs declaration and container dragging service, we need to find an agent to help us with customs declaration and trailer in advance.

Customs declaration

As there are many goods in the container, the customs will not release the goods as long as there is a mistake in the documents of one container, which affects the shipping time of other goods in the same container. However, the entire container of goods only has one ticket, and it can be released after the customs declaration is passed. Therefore, the LCL clearance time is longer and more complicated than the entire container. In addition, customs clearance requires a certain amount of time, and it is generally one working day for release. But in order to prevent accidents, it is best to put the goods into the container three or four days in advance, that is, to load the container.

LCL cargo usually cannot accept the designation of a specific shipping company. Shipping companies only accept bookings for FCL cargo, and do not directly accept bookings for LCL cargo. Only through freight forwarders (individual powerful shipping companies through their logistics companies) can make bookings with shipping companies after consolidating the LCL cargo.

The difference in shipping costs

There is also a big difference in the transportation cost of LCL and FCL.

Judging from this quotation, the cost composition of FCL and LCL is also different.

The cost of the whole cabinet is composed of: ocean freight, port miscellaneous fees, warehouse charges, internal loading fees, and some goods also have direct loading fees, reinforcement fees and other costs.

LCL generally includes three costs, ocean freight, LOCAL CHARGE, and warehouse costs.

The LOCAL fee is paid to the agent by the consignee at the port of destination. The fee for each port is different, and the fee charged by each agent is different, so you must confirm with the freight forwarding company in advance.

Because FCL transportation reduces the shipping company's procedures, some shipping associations will offer freight discounts for FCL transportation. For LCL cargo, shipping associations usually charge a certain service fee for container freight stations.

Some ocean freight companies' transportation tables stipulate that there is a minimum limit for the volume of containers used for LCL cargo, and the loading capacity shall not be lower than this limit. If the loading quantity is below this minimum limit, the shipper must also follow this minimum pay for the limited load (the unused ones also need to be paid), and are usually charged at the highest freight rate of the goods in the box.