FCL is a full container load in which the whole container is reserved for a single shipper. LCL is groupage sea transport in which small shipments are stuffed into the same container with other cargo at the consolidator's warehouse. For shipments above roughly 13–15 m³, FCL is often more economical, faster and involves less handling.
How is the price formed in the two models?
In FCL, freight is paid per container: the price is the same even if the 20' or 40' container is half full. Items such as the terminal handling charge (THC) and bunker surcharge are added to the freight. In LCL, the charge is calculated on a W/M basis; 1 tonne and 1 m³ are treated as equivalent, and whichever is greater is invoiced. CFS warehouse, consolidation and deconsolidation charges at both ends are added to this. The detailed calculation is in the LCL freight entry.
FCL and LCL comparison table
| Parameter | FCL | LCL |
|---|---|---|
| Container use | Entirely for a single shipper | Shared with several shippers |
| Pricing | Per container | W/M (m³ or tonne), minimum 1 m³ |
| Handling | Loading at the shipper's warehouse, unloading at the consignee's | More, including consolidation at the CFS and deconsolidation at destination |
| Transit time | Depends on the vessel schedule, direct | Usually a few extra days for consolidation and deconsolidation |
| Risk of damage and loss | Low; the container travels sealed | Higher; contact with other cargo and transfers |
| Customs | Single cargo, single declaration | An inspection or missing document for one cargo can delay deconsolidation |
| Delivery | The container can be hauled to the consignee's door | The cargo is collected from the destination CFS warehouse |
| Waiting costs | Demurrage and detention if free time is exceeded | Warehouse storage charges |
At what volume should you switch to FCL?
The internal volume of a standard 20' container is about 33 m³; due to gaps from packaging, in practice it takes 25–28 m³ of cargo. The higher the LCL unit price, the lower the threshold for switching to FCL. The threshold is found by dividing the total door-to-door cost of a 20' FCL by the total cost per m³ of LCL. Example: if the end-to-end cost of LCL is USD 90 per m³ and the total for a 20' FCL is USD 1,300, the threshold is about 14.4 m³. On most routes this calculation falls in the 13–15 m³ range.
With heavy, low-volume cargo the situation can be reversed: a 12-tonne machine taking up 8 m³ is invoiced as 12 revenue tonnes in LCL. For such cargo, an FCL or flat rack quotation should also be obtained.
When is LCL the better choice?
- If the shipment is a few pallets or under 10 m³.
- If samples, spare parts or a trial order are being shipped.
- If frequent shipments are made in small lots to avoid holding stock.
- If there is a few days' flexibility in the delivery date.
The party that stuffs the container also differs between the two models. In FCL, loading is usually done at the shipper's warehouse, the shipper seals the container and the bill of lading often carries the clause "shipper's load and count"; the shipper is responsible for the contents. In LCL, the consolidator stuffs the container, and stowage and lashing are its responsibility.
How consolidation is done is explained in the LCL consolidation entry. In LCL, cargo is often carried under a house B/L issued by the consolidator; the difference is explained in the master B/L vs house B/L entry.
Common mistakes
- Comparing freight alone and overlooking CFS and deconsolidation charges at destination.
- Not securing the cargo in a half-empty FCL container; empty space leads to the load shifting.
- In FCL, preparing customs documents after the vessel arrives without taking free time into account.
In sea freight, Voltim Global prices FCL and LCL options side by side according to the volume and weight of the cargo; the threshold calculation is made at the quotation stage.