Shipping & logistics FCL / LCL

Full container load (FCL) and less than container load (LCL)

With FCL a whole container is dedicated to one shipper’s cargo: it is stuffed and sealed at the factory and opened at the buyer’s warehouse. With LCL small lots from several shippers are consolidated in one container at a consolidator’s warehouse and charged per cubic metre or tonne, whichever is greater. In raw material trade FCL is usually cheaper and safer above roughly 10–15 m³; LCL suits samples and small orders.

Related terms

Container types (20’, 40’, 40’HC, reefer, open top)

A 20-foot container (about 33 m³, payload around 25–28 t) suits heavy, dense cargo such as metals, minerals and bagged chemicals; a 40-foot (67 m³) and 40-foot high cube (40’HC, 76 m³, ~26 t) suit light but bulky goods such as plastic granules, fibres and foam. In practice road weight limits are often more restrictive than container capacity. Reefers are used for the cold chain, open-tops and flat racks for machinery and oversized items, and tank containers for liquids.

Freight (freight rate)

The price paid to the carrier for moving goods. Container freight is priced per box (e.g. USD per 40’HC), bulk freight per tonne (USD/mt), and chartered ships by daily hire (USD/day). Surcharges can be added to the base rate: bunker (BAF), currency (CAF), terminal handling (THC), congestion and war-risk surcharges. Freight markets are volatile and are tracked through indices such as Drewry, Freightos (FBX) and the Baltic Dry Index (BDI).

Freight forwarder

A company that organises transport on the shipper’s behalf: it obtains freight quotes, books space on ships or aircraft, arranges containers, warehousing and trucking, prepares documents and often works together with a customs broker. Forwarders that issue their own bills of lading (house B/L) act as NVOCCs and take on carrier liability. FIATA membership and liability insurance are good indicators when choosing a reliable forwarder.

Explained in the trade handbook

Trade handbook