LCL & FCL in Shipping!

FCL stands for Full Container Load: It refers to a shipper booking an entire container, whether it is completely full or not.

LCL stands for Less than Container Load: When several, usually small, shipments from different shippers are consolidated into one container.  Because of the small shipments in LCL, it can provide shippers with a cost-effective solution.

Other related terminologies:

LTL: Less than Truckload

FTL: Full Truckload

What are the three key differences between FCL and LCL:

1. FCL is less prone to cargo damage and is therefore advisable for valuable commodities. This is because consolidation usually in warehouses in LCL involves more handling, which can increase the risk of damage.

2. The transit time is usually longer for LCL shipments due to additional steps such as consolidation and deconsolidation. If one shipment encounters delay in customs procedures, it can affect the other shipments as well.

3. If the shipper lacks financial resources and storage facilities, then LCL is a good option to keep inventory levels low.

 The choice between LCL and FCL depends on factors such as whether the shipment is small or large, how quickly the shipper needs it to arrive, cost limitations, storage restrictions, and other considerations.