Full container load (FCL) shipping. Meaning, benefits & drawbacks
The Full Container Load (FCL) shipping market was valued at approximately USD 392.75 billion in 2023 and is projected to reach around USD 551.77 billion by 2030, growing at a compound annual growth rate of 5.0%. In this article you will learn what FCL shipping is, the differences with LCL shipping, and benefits and drawbacks of FCL shipping.
FCL meaning. What is Full Container Load shipping?
FCL meaning in shipping refers to Full Container Load, a mode of ocean freight transport where a single shipper utilizes an entire container for their goods. Unlike LCL (Less than Container Load), where multiple shipments from different businesses share a container, FCL provides dedicated container space for one party’s cargo.
How does FCL shipping work?
The FCL shipping process is relatively straightforward and consists of the following steps.
- Booking a container. Shippers work with freight forwarders or carriers to book a container suitable for their cargo’s volume and type.
- Container Loading. The cargo is packed and loaded directly into the FCL container, either at the shipper’s premises or a designated warehouse.
- Transportation to port. Once loaded, the container is transported to the departure port.
- Ocean freight. The container is shipped via ocean freight to its destination port.
- Customs clearance and delivery. Upon arrival, the container undergoes customs clearance before being transported to its final destination.
This direct and dedicated process minimizes handling, reducing the risk of damage and delays compared to shared-container methods like LCL.
FCL vs. LCL: What are the differences?
In contrast to Full Container Load shipping with Less than Container Load (LCL) shipping a container is shared with multiple shippers. FCL shipping has several advantages and disadvantages compared to LCL shipping.
Benefits FCL vs LCL
- Cost efficiency for large shipments. For businesses shipping in bulk, the cost per unit in an FCL container is lower compared to LCL.
- Faster transit times. With no need to consolidate or deconsolidate cargo, FCL shipments move faster through the supply chain.
- Enhanced security. The container is sealed at the origin and remains untouched until it reaches its destination, reducing risks of theft or damage.
- FCL logistics allow shippers to load and manage cargo according to their requirements.
Drawbacks FCL vs LCL
- Higher upfront costs. While cost-effective for bulk shipments, FCL shipping may be more expensive for smaller cargo loads.
- Space Utilization. If a shipper cannot fully utilize the container space, they may end up paying for unused capacity. This can make FCL less cost effective.
- Not suitable for smaller businesses. For smaller firms with lower shipping volumes LCL is cheaper than FCL.
Do you want to learn more about Less than Container Load shipping? Read our article about LCL.
How are the costs of FCL shipping calculated?
The cost of FCL shipping depends on the following factors.
- Container size. Common FCL container sizes are 20-foot and 40-foot containers, with rates varying accordingly.
- Freight Route. The distance and shipping lanes influence the base cost.
- Cargo type and weight. Heavy or specialized cargo may incur additional fees.
- Peak seasons, such as holiday periods, often lead to higher FCL freight rates.
- Port charges and customs fees. Additional costs for handling, documentation, and customs clearance apply.
- Additional Services. Optional services like door-to-door delivery or insurance can add to the total expense.
About Hoefon Security Seals
Hoefon Security Seals is a certified supplier of security seals, cargo locks and transport monitoring systems. We ship worldwide and are a specialist in customizing products. Please feel free to contact us for further information.
Niels Pas
CEO Hoefon Security Seals
Niels Pas has been Hoefon Security Seals’ CEO since 2017. He has extensive international experience and speaks 4 languages professionally.
