Delivery cargo by ocean line become one of the most popular method nowadays. In Vietnam, with the advantage of a long coastline, import and export activities by ocean line is more and more develop and accounting for a large proportion of delivery methods. For delivery by ocean line, we can divide into 2 types: FCL service and LCL service. So what is the difference between the 2type of service? Which factors that need to consider for choosing FCL and LCL?

What is FCL and LCL?

FCL (Full container load),  mean that customer’s cargo will use the whole of container, no need to share container with other seller. The seller take empty container, load their own cargo and close seal, drop into CY yard.

On the other hands, LCL ( less than container): customer’s cargo use only a part of container. The selling will delivery their cargo to CFS warehouse, and CFS warehouse will load it with other seller’s cargo, then close container and drop off to CY yard. As can be seen that, with LCL service, we need to work with coleader instead of carrier as FCL service.

Which factors that need to consider when choosing FCL and LCL?

1. Volume of cargo and cost

Because with FCL service, customer will use a container, so the fee will calculate by container. On the other hands, for LCL service, almost fees will be calculated by the amount of cbm( or by amount of tons which the number is bigger). In other words, the larger the volume, the higher the fee needed to pay. Ocean freight is one of the charge calculated by cbm, and this fee will make the difference in the cost of 2 type service significantly. Beside trucking fee is different between FCL and LCL shipment. FCL only use truck for container 20 and 40, meanwhile with LCL, we will have more options. Trucking for LCL shipment include 1.25 tons, 2.5 tons, 5 tons, 7 tons, 10 tons,… so we can choose the best suitable truck is shipped by LCL service

Please refer the tariff of local charge of between FCL and LCL service as below for a general shipment from Hai Phong to Longbeach:

Below is the tariff of local charge in origin port of between FCL and LCL service as below for a general shipment from Ho Chi Minh to Chicago:

To sum up, as normally, volume is over 15 cbm, FCL may be better option.

2. Transit time

In fact, FCL service’s transit time is quite shorter than LCL service’s. there are 2 reason as below:

Firstly, For LCL shipment, we have to bring the cargo to the CFS ửaehouse first, then they will gather the cargoes, load to the container and drop it to CY yard. Similarly, when the container arrive at the destination port, the container also needs to wait to be move into the CFS warehouse, then un-stuff it. Consignee is only able to delivery their cargo until all procedure complete and cargo ready at warehouse. Meanwhile, FCL shipment, customer just need to wait for the container to arrive at the port and available at the yard to be able to get it. Therefore, for urgent shipment that need to ensure progress, FCL is the better choice.

Secondly, For long-route shipments, for example, shipment is exported from HaiPhong to Seattle, the container will be discharged at the transit port and caught by another ship to arrive at the Port of Discharging. For FCL service, the container only discharged at the transit port and wait for the earliest next schedule. However, for LCL service, your cargo normally be unloaded from the container, and stuff into a new container and waiting for a new vessel schedule. This may cause the increasing waiting time at the transit port because there are more stages and the risk of not finding the sooner schedule, especially in the peak season. As our experience, The transit time’s dispancy is around 7-14 days – base on each route.

3. Type of good

Last but not least, the type of goods is also a factor to consider when choosing to FCL or LCL service. For LCL servicce, there are some regulations on the packing of goods and the type of goods. commodity need to be carefully packed into cartons, pallets,… co-loader may refuse to deliver the cargo if it is oversized or may cause damage to other cargo in the same container. Besides, dangerous goods, fragile goods, … will also be charged a higher price.

In addition, LCL service is usually only used for general commodity. For commodity with special requirements: reefer, open-top, Flat rack,…we have to use the whole container that corresponding to that type of goods.

Below is some factor that we consider between FCL and LCL service. SM Global Logistics is known as one of the leading freight forwarding companies in Vietnam, providing ocean freight, air freight for export- import cargo service, customs clearance and local trucking. We not only got the best service, but also got the competitive rate for many routes, especially for US route as below:

Haiphong port to Los Angeles/ NewYork/ Houtons/ Chicago,…

Hochiminh port to Tacoma/ Seattle/ Savanah,…