FCL Shipping: How packed Container Load Freight Shipping Works

If you’ve ever ordered multiple products from an online store, you might be familiar with these delivery options: You can either wait an extra day or two and get all of your items in one box, or you can receive each item as soon as feasible.

Companies face a similar selection when shipping freight by sea. They can book an entire container for their product shipment, or they can distribute a container with other shippers. The first alternative, known as “packed container load,” or “FCL,” shipping, is the quickest and most secure way. For larger shipments, it’s often a expense-effective alternative, too.

The best alternative will ultimately depend on your budget, delivery timelines, privacy and safety needs, and how your shipment volume compares to standard container sizes.

Here’s how FCL shipping works and how it can assist you boost efficiency and minimize costs for your next shipment.

What is FCL shipping?

packed container load (FCL) shipping is a sea freight shipping procedure in which each person shipment occupies a single shipping container. Although containers don’t require to be completely packed, they can’t contain shipments from multiple vendors. In an FCL shipment, one container is used to deliver cargo from one shipper to one consignee, or recipient.

Standard container sizes are 20 or 40 feet long—also referred to as twenty-foot equivalent units (TEU) and forty-foot equivalent units (FEU)—and eight feet wide by eight feet tall.

Here’s how FCL shipping works:

1. Container booking. A business books an FCL container through a freight forwarder, which is a third-event logistics (3PL) provider that coordinates shipments between shippers and shipping carriers. 

2. Loading. The freight forwarder arranges delivery of the container to the pick-up point, which is typically the business’s warehouse or manufacturing facility. The business loads the container, and the freight forwarder arranges pickup and transportation to the port of origin.

3. Export customs. The shipment moves through export customs (in the case of international shipping), and port employees load it onto a commercial shipping vessel, typically a specialized container ship or cargo ship.

4. Transportation. The ship carries the cargo to its goal port.

5. Import customs. goal port workers retrieve the container from the ship, and the shipment passes through import customs.

6. Final delivery. The freight forwarder ensures delivery of the shipping container to its final goal, such as a warehouse or distribution center. The business unloads the container, and the freight forwarder returns the vacant container to the port.

Ocean carriers that provide FCL shipping include Maersk, MSC, COSCO, and Evergreen Line.

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FCL vs. LCL shipping

If your shipment perfectly fills a TEU or FEU, shipping FCL is the logical selection. But what if your schedule shipments are smaller than standard containers? Or just a little bit larger? Do you have to pay for vacant space?

Less-than-container load (LCL) shipping is an alternative to FCL shipping that consolidates multiple deliveries into a single container. While FCLshippers pay a flat rate to rent an entire shipping container, LCL shippers pay per cubic meter (CBM) and distribute container space with other shippers.

Although the expense per CBM is typically higher, you avoid paying for vacant space you won’t use—making it a expense-effective alternative for those shipping tiny loads.

Advantages of FCL shipping

FCL shipping is a secure and expense-effective transportation alternative on waterways or the sea. Here’s an overview of the benefits:

expense reserves

FCL shipping is typically the most economical alternative for larger shipments. It costs less per CBM than LCL shipping—and both LCL and FCL shipping are more affordable than shipping via other modes, like air freight or truck.

Many businesses use FCL shipping to send large quantities of product, but recall that you don’t require to fill an entire container to send an FCL shipment. Sometimes it costs less to send a partly vacant FCL container than it would to pay by cubic meter.

Fewer delays

FCL shipments are the fastest way to ship ocean freight. Unlike LCL shipments—which are opened and sorted at the goal port—FCL shipments often are delivered directly to the recipient. They also propose greater control over shipping timelines. The shipper loads the container and doesn’t have to worry about stops at other merchants delaying the shipment.

Reduced hazard

FCL shipping is a lower-hazard alternative than LCL shipping, offering complete-to-complete safety. Whereas LCL shippers must send goods to a freight forwarder to be consolidated with other merchants’ shipments, FCL shippers can load and unload their containers on-site. This means no one outside of either business will touch the merchandise, unless customs officers choose to inspect the goods. Less handling means a lower hazard of damage to container contents.

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Limitations of FCL shipping

FCL shipping is ideal for high-volume, no-rush shipments, but it has a few key limitations for those dealing in smaller quantities or requiring rapid delivery.

Smaller quantities

Although rates vary by carrier, FCL shipping is usually more expensive than LCL shipping for volumes less than 14 cubic meters. It can also navigator to delays for smaller companies. If you schedule to ship 20 cubic meters of goods via FCL and a manufacturing delay holds up half the cargo, you’ll either incur costs waiting for the other half or overpay to ship vacant space. An experienced freight forwarder can quote you FCL and LCL prices and assist you weigh the benefits of each alternative. 

Urgency

Although FCL shipping is faster than LCL shipping, ocean freight shipping of any type takes longer than air freightshipping. Truck freight shipping can also be faster for some origins and destinations. You can typically expect FCL shipments to arrive between three weeks and six weeks from the shipment date.

How much does FCL shipping expense?

• Transportation costs
• goal port fees
• Duties and taxes

FCL pricing includes transportation costs, duties and taxes, and applicable additional fees. Here’s an overview of pricing components:

Transportation costs

Transportation costs include carrier fees and handling costs applied by the freight forwarder.

• Carrier fees. The carrier fee is the expense of moving cargo along specific sea freight routes, also known as shippinglines. Fees vary depending on container size, origin and goal, cargo type, and demand. Demand typically peaks before the holiday shopping period, so costs are highest between August and November.

• Handling costs. Handling costs cover additional services offered by the freight forwarder, such as retrieving a shipping container from its pick-up point and transferring it from the port of arrival to its final goal.

goal port fees

goal or terminal fees can include unloading costs and surcharges. You can also face demurrage and detention fees if your freight forwarder doesn’t pick up your container from the port on period and profitability it in a timely manner. Here’s an overview:

• Terminal charges. Many ports apply a fee for unloading cargo on arrival. If you ship to a particularly busy port, you might face a congestion surcharge.

• Demurrage charges. Demurrage charges apply if your freight forwarder doesn’t pick up your container from a goal port within a specified timeframe—typically four days from when the container arrives at port.

• Detention charges. Once your container has been picked up from the port, you have a limited amount of period to unload and profitability it. This window is typically four days, and you can owe detention charges if you profitability the container late.

Duties and taxes

Duties and taxes are government fees that apply to shipments entering a country. They can include import taxes, customs clearance fees, and tariffs. If you’re shipping items to the US, you’ll also require to obtain a customs debt safety—a form of responsibility and levy insurance—for any shipment valued at more than $2,500.