Why is FCL more expensive than LCL?

Dec 05, 2023

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Firstly, FCL transportation provides higher transportation efficiency compared to LCL transportation. Full container transportation usually refers to the entire container being occupied by the same shipper or batch of goods, while LCL transportation involves loading goods from different shippers or batches into the same container. Full container transportation avoids mixing of goods and reduces the number of operations during loading, unloading, and transfer, thereby reducing transportation time. This efficiency means that full container transportation can deliver goods from the origin to the destination faster, but in contrast, it incurs higher costs.
Secondly, full container transportation has higher standards in terms of cargo protection. Due to the exclusive use of one container for full container transportation, the risk of damage to the goods during transportation is relatively small. In contrast, in LCL transportation, goods from different shippers may need to share the same container, which increases the risk of damage or loss of goods. In order to ensure that the goods arrive at the destination intact and undamaged, stricter packaging and fixing measures are usually adopted for full container transportation, which also increases the cost of full container transportation.
In addition, the stability and controllability of full container transportation are more prominent during transportation. The full container load is provided by one shipper, which means the entire loading process is simpler and the transportation route is easier to plan. This controllability makes full container transportation easier to cope with unexpected situations, such as bad weather, transportation equipment failures, etc., thereby ensuring the safety and timeliness of goods. On the contrary, LCL transportation involves goods from multiple shippers and often requires more complex coordination and management, which increases transportation uncertainty and makes the cost of LCL transportation relatively low.
In addition, the space waste in full container transportation is relatively small. Due to the fact that full container transportation involves loading the goods of one shipper into the entire container, it can make more use of the container's space and reduce space waste. In contrast, LCL transportation may not fully utilize the internal space of containers due to the involvement of goods from multiple shippers, thereby increasing the transportation cost per unit of goods.
Finally, customized services in full container transportation are also one of the reasons for the cost increase. For some high-end goods or shippers with special requirements for the transportation process, full container transportation provides more personalized services. This includes services such as temperature control, humidity control, and safety monitoring to ensure that the goods are best protected throughout the entire transportation process. These additional services will undoubtedly increase the cost of full container transportation, but for some enterprises that have extremely high requirements for cargo safety, this is an acceptable additional expense.

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