Which is cheaper, LCL or FCL?
Jan 22, 2024
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Sea freight consolidation
advantage
Flexibility: LCL allows multiple shippers to share a container, flexibly adapting to the transportation needs of small batches of goods. This is a clear advantage for small-scale enterprises or individual shippers.
Cost sharing: As LCL involves multiple shippers sharing a container, transportation costs are shared, and the unit price of LCL may be more economical compared to FCL.
Wide applicability: LCL is suitable for various types and sizes of goods, whether it is general or special goods, which can be transported through LCL.
Reduce inventory pressure: LCL can reduce the time it takes for goods to accumulate in the warehouse, improve the turnover rate of goods, and alleviate inventory pressure.
Insufficient
Time uncertainty: Due to waiting for the container to be filled before shipment, the time for consolidation is even more uncertain, which may not be suitable for goods with urgent needs.
Risk sharing: Due to multiple shippers sharing the same container, once there is a cargo damage or difference, it is difficult to hold them responsible, and risk sharing of goods becomes a problem.
Sea freight full container load
advantage
Time controllable: Full container transportation does not require waiting for other goods, making time more controllable and suitable for goods with time constraints.
High safety: In full container transportation, the goods are exclusively owned by one shipper in one container, resulting in relatively high safety and reducing the risk of cargo loss.
Large capacity: Full container transportation is suitable for large quantities of goods, can meet large-scale transportation needs, and reduce transportation costs.
Insufficient
Relatively high cost: Due to the fact that the entire container is exclusively owned by one shipper, the transportation cost of a full container may be higher compared to LCL.
Not suitable for small batch goods: For small-scale enterprises or individual shippers, full container load may not be cost-effective as shipping costs cannot be shared.
Not applicable to all types of goods: For some special shapes or sizes of goods, full box transportation may not be suitable because full box transportation has certain requirements for the packaging and size of the goods.
Cost comparison
Cost is a key consideration when choosing between LCL or FCL shipping. The flexibility and cost sharing of LCL make it more economical for small-scale cargo transportation. Full container load is suitable for large-scale transportation of goods, especially in situations with strict time requirements.
