Why is LCL transportation more expensive than FCL transportation?

1. Transportation cost:
LCL transportation usually involves placing goods from different shippers in the same container, thus requiring additional work to organize and manage these mixed goods. Compared to this, full container transportation is simpler because a container only carries goods from the same shipper. This additional organizational and management work has led to an increase in transportation costs for LCL transportation, making it relatively more expensive.
2. Operational complexity:
LCL transportation involves goods from multiple shippers, which requires careful handling and management to prevent confusion or damage. The classification, labeling, and allocation of goods require more operations, which increases the complexity of the entire transportation process. On the contrary, full container transportation is usually simpler because the goods in a container come from the same shipper, reducing operational complexity.
3. Space waste:
In LCL transportation, the need to accommodate goods from different shippers may result in wasted space inside the container. Some goods may not be able to fully fill the container due to size, shape, or special requirements. This causes waste of space, and full container transportation makes it easier to fully utilize the space inside the container, reducing waste.
4. Insurance costs:
Due to the involvement of multiple consignors in LCL transportation, each consignor's goods need to be independently insured. Relatively speaking, full container transportation may be more convenient for shippers to purchase centralized insurance, reducing the overall cost of insurance. This is also a factor that leads to higher costs of LCL transportation.
5. Uncertainty in the supply chain:
LCL transportation may lead to some uncertainty in the supply chain due to the involvement of multiple shippers. Centralized management and coordination of goods are relatively more difficult, which may cause delays or other problems during transportation. Full container transportation is more stable in this regard, as goods come from the same shipper and the supply chain has higher controllability.