Is FCL cheaper than LCL to Europe From China?

 When it comes to shipping goods from China to Europe, one of the most important decisions you have to make is whether to use FCL (full container load) or LCL (less than container load) shipping. FCL and LCL are two common modes of sea freight that have different advantages and disadvantages depending on your needs and budget. In this article, we will explain what FCL and LCL shipping are, what factors to consider when choosing between them, and how to compare their costs. We will also provide some case studies to illustrate the benefits and drawbacks of FCL and LCL shipping to Europe from China.

Understanding FCL and LCL shipping



FCL and LCL are terms that describe how much space your cargo occupies in a shipping container. A standard shipping container has a capacity of 20 or 40 feet, and can hold up to 28 or 56 cubic meters of cargo respectively.

  • FCL shipping means that you book and pay for the entire container, regardless of how much space your cargo actually takes up. You have exclusive use of the container, and you can load and seal it at your origin and unload and unseal it at your destination. FCL shipping is suitable for large or heavy shipments that can fill up most or all of the container space, or for shipments that require extra security or protection from damage or contamination.
  • LCL shipping means that you share the container space and cost with other shippers who have smaller or lighter shipments. Your cargo is consolidated with other shipments at a warehouse or terminal, and then loaded into a container. The container is then transported to the destination, where it is deconsolidated and your cargo is delivered to you. LCL shipping is suitable for small or medium-sized shipments that do not need a full container, or for shipments that have flexible delivery times.

Factors to consider when choosing between FCL and LCL shipping

There are several factors that can influence your decision to use FCL or LCL shipping, such as:

  • The volume and weight of your cargo: As a general rule of thumb, if your cargo occupies more than 15 cubic meters or weighs more than 10 tons, FCL shipping is more economical than LCL shipping. However, this can vary depending on the freight rates, the destination, and the season. You can use online calculators or consult with freight forwarders to compare the costs of FCL and LCL shipping for your specific shipment.
  • The nature and value of your cargo: If your cargo is fragile, perishable, hazardous, or high-value, FCL shipping may be preferable to LCL shipping, as it offers more security and control over your shipment. FCL shipping reduces the risk of damage, theft, or loss of your cargo, as it is handled less and sealed throughout the transit. FCL shipping also allows you to choose the type and quality of the container, such as refrigerated, insulated, or ventilated, to suit your cargo’s needs.
  • The delivery time and reliability of your shipment: If your shipment is time-sensitive or urgent, FCL shipping may be faster and more reliable than LCL shipping, as it avoids the delays and uncertainties associated with consolidation and deconsolidation processes. FCL shipping also gives you more flexibility and visibility over your shipment, as you can track and control it more easily. FCL shipping also has fewer customs and documentation requirements than LCL shipping, as it involves fewer parties and transactions.

Cost comparison: FCL vs. LCL shipping

The cost of FCL and LCL shipping depends on various factors, such as the freight rates, the origin and destination, the season, the container size and type, the cargo volume and weight, the insurance, the customs and taxes, and the additional services and fees. Therefore, it is difficult to give a definitive answer to the question of which mode of shipping is cheaper. However, we can provide some general guidelines and examples to help you compare the costs of FCL and LCL shipping.

  • The freight rate is the price charged by the carrier or the freight forwarder for transporting your cargo from one point to another. The freight rate for FCL shipping is usually based on the container size and type, while the freight rate for LCL shipping is usually based on the cargo volume and weight. The freight rate for FCL shipping is usually fixed and stable, while the freight rate for LCL shipping is usually variable and fluctuating. The freight rate for FCL shipping is usually lower than the freight rate for LCL shipping per cubic meter or per ton, but higher than the freight rate for LCL shipping per container.
  • The origin and destination are the locations where your cargo is picked up and delivered. The origin and destination affect the cost of FCL and LCL shipping by influencing the availability and demand of the container space, the distance and route of the transportation, and the local charges and regulations. The cost of FCL and LCL shipping can vary significantly depending on the origin and destination, and some routes may be more favorable for one mode of shipping than the other.
  • The season is the time of the year when your cargo is shipped. The season affects the cost of FCL and LCL shipping by influencing the supply and demand of the container space, the weather and sea conditions, and the peak and off-peak periods. The cost of FCL and LCL shipping can change significantly depending on the season, and some seasons may be more advantageous for one mode of shipping than the other.
  • The container size and type are the dimensions and features of the container that you use for your shipment. The container size and type affect the cost of FCL and LCL shipping by influencing the capacity and quality of the container space, the compatibility and suitability of the container for your cargo, and the availability and demand of the container. The cost of FCL and LCL shipping can differ significantly depending on the container size and type, and some containers may be more appropriate for one mode of shipping than the other.
  • The cargo volume and weight are the measurements of the space and mass that your cargo occupies and exerts. The cargo volume and weight affect the cost of FCL and LCL shipping by influencing the utilization and efficiency of the container space, the loading and handling of the cargo, and the freight rate and charges. The cost of FCL and LCL shipping can increase or decrease depending on the cargo volume and weight, and some cargo sizes may be more suitable for one mode of shipping than the other.
  • The insurance is the protection and coverage that you purchase for your cargo in case of damage, loss, or theft. The insurance affects the cost of FCL and LCL shipping by influencing the risk and liability of your shipment, the value and nature of your cargo, and the premium and deductible. The cost of FCL and LCL shipping can vary depending on the insurance, and some insurance options may be more beneficial for one mode of shipping than the other.
  • The customs and taxes are the fees and duties that you pay for importing or exporting your cargo. The customs and taxes affect the cost of FCL and LCL shipping by influencing the clearance and inspection of your shipment, the origin and destination of your cargo, and the tariff and regulations. The cost of FCL and LCL shipping can differ depending on the customs and taxes, and some customs procedures may be more favorable for one mode of shipping than the other.
  • The additional services and fees are the extra costs that you incur for enhancing or facilitating your shipment. The additional services and fees affect the cost of FCL and LCL shipping by influencing the quality and convenience of your shipment, the requirements and preferences of your cargo, and the charges and surcharges. The cost of FCL and LCL shipping can increase depending on the additional services and fees, and some services may be more necessary for one mode of shipping than the other.

To illustrate the cost comparison of FCL and LCL shipping, let us consider an example of shipping 20 cubic meters of general cargo from Shanghai to Rotterdam in December 2023. According to the online calculator of Freightos, a leading freight marketplace, the estimated costs of FCL and LCL shipping are as follows:

Table
Cost ComponentFCL ShippingLCL Shipping
Freight Rate$1,500$1,800
Origin Charge$300$400
Destination Charge$300$500
Insurance$100$100
Customs and Taxes$200$200
Additional Services and Fees$100$200
Total Cost$2,500$3,200

As we can see, the total cost of FCL shipping is $700 cheaper than the total cost of LCL shipping for this shipment. This is mainly because the freight rate for FCL shipping is lower than the freight rate for LCL shipping per cubic meter, and the origin and destination charges for FCL shipping are lower than the origin and destination charges for LCL shipping per shipment. However, this cost comparison may not apply to every shipment, as the costs of FCL and LCL shipping can vary depending on the factors mentioned above.

Advantages of FCL shipping

FCL shipping has several advantages over LCL shipping, such as:

  • Lower cost per unit: FCL shipping can be more cost-effective than LCL shipping if your cargo volume or weight exceeds a certain threshold, as you can benefit from the lower freight rate and charges per unit.
  • Faster delivery time: FCL shipping can be faster than LCL shipping, as it avoids the delays and uncertainties associated with consolidation and deconsolidation processes. FCL shipping also has fewer customs and documentation requirements than LCL shipping, as it involves fewer parties and transactions.
  • More security and control: FCL shipping can be more secure and controlled than LCL shipping, as it reduces the risk of damage, theft, or loss of your cargo, as it is handled less and sealed throughout the transit. FCL shipping also allows you to choose the type and quality of the container, such as refrigerated, insulated, or ventilated, to suit your cargo’s needs.
  • More flexibility and visibility: FCL shipping can be more flexible and visible than LCL shipping, as it gives you more options and information over your shipment. You can choose the container size and type, the loading and unloading dates and locations, and the shipping route and schedule. You can also track and monitor your shipment more easily, as you have a unique container number and seal number.

Advantages of LCL shipping

LCL shipping has several advantages over FCL shipping, such as:

  • Lower cost per container: LCL shipping can be more cost-efficient than FCL shipping if your cargo volume or weight is below a certain threshold, as you can benefit from the lower freight rate and charges per container.
  • Less waste and environmental impact: LCL shipping can be more eco-friendly than FCL shipping, as it reduces the waste and emissions of unused or underutilized container space. LCL shipping also promotes the optimization and sharing of the container space, which can lower the overall demand and supply of the containers.
  • More availability and accessibility: LCL shipping can be more available and accessible than FCL shipping, as it offers more frequent and diverse shipping options. You can ship your cargo anytime and anywhere, as you do not need to wait for a full container or a specific destination. You can also access more ports and markets, as you can use smaller and cheaper vessels that can reach more places.

Disadvantages of FCL shipping

FCL shipping has several disadvantages compared to LCL shipping, such as:

  • Higher cost per unit: FCL shipping can be more expensive than LCL shipping if your cargo volume or weight is below a certain threshold, as you have to pay for the entire container regardless of how much space your cargo actually takes up.
  • More waste and environmental impact: FCL shipping can be more wasteful and harmful than LCL shipping, as it generates more waste and emissions of unused or underutilized container space. FCL shipping also increases the overall demand and supply of the containers, which can raise the costs and risks of the container industry.
  • Less availability and accessibility: FCL shipping can be less available and accessible than LCL shipping, as it offers fewer and less frequent shipping options. You may have to wait for a full container or a specific destination, which can delay your shipment or limit your choices. You may also have difficulty accessing some ports and markets, as you may need larger and more expensive vessels that can accommodate your container.

Disadvantages of LCL shipping

LCL shipping has several disadvantages compared to FCL shipping, such as:

  • Higher cost per container: LCL shipping can be more costly than FCL shipping if your cargo volume or weight exceeds a certain threshold, as you have to pay for the cargo volume and weight rather than the container size and type.
  • Slower delivery time: LCL shipping can be slower than FCL shipping, as it involves more delays and uncertainties associated with consolidation and deconsolidation processes. LCL shipping also has more customs and documentation requirements than FCL shipping, as it involves more parties and transactions.
  • Less security and control: LCL shipping can be less secure and controlled than FCL shipping, as it increases the risk of damage, theft, or loss of your cargo, as it is handled more and unsealed throughout the transit. LCL shipping also limits your choice of the type and quality of the container, as you have to share it with other shippers and their cargo.
  • Less flexibility and visibility: LCL shipping can be less flexible and visible than FCL shipping, as it gives you fewer options and information over your shipment. You have to follow the container size and type, the loading and unloading dates and locations, and the shipping route and schedule of the carrier or the freight forwarder. You also have difficulty tracking and monitoring your shipment, as you have to rely on the container number and the bill of lading.

Case studies: FCL vs. LCL shipping to Europe from China



To illustrate the benefits and drawbacks of FCL and LCL shipping to Europe from China, let us consider some case studies of different types of shippers and their shipments.

  • Case study 1: A furniture manufacturer who wants to ship 40 cubic meters of wooden chairs from Guangzhou to Hamburg in January 2024. The shipment is not urgent, but the cargo is bulky and fragile.
    • FCL shipping: The furniture manufacturer can use a 40-foot container to ship the wooden chairs, which can fit 56 cubic meters of cargo. The estimated cost of FCL shipping is $3,000, which includes the freight rate, the origin and destination charges, the insurance, the customs and taxes, and the additional services and fees. The estimated delivery time of FCL shipping is 30 days, which includes the loading and unloading, the transportation, and the clearance. The advantages of FCL shipping for this shipment are the lower cost per unit, the faster delivery time, and the more security and control. The disadvantages of FCL shipping for this shipment are the higher cost per container, the more waste and environmental impact, and the less availability and accessibility.
    • LCL shipping: The furniture manufacturer can use LCL shipping to ship the wooden chairs, which will occupy 40 cubic meters of container space. The estimated cost of LCL shipping is $4,000, which includes the freight rate, the origin and destination charges, the insurance, the customs and taxes, and the additional services and fees. The estimated delivery time of LCL shipping is 40 days, which includes the consolidation and deconsolidation, the transportation, and the clearance. The advantages of LCL shipping for this shipment are the lower cost per container, the less waste and environmental impact, and the more availability and accessibility. The disadvantages of LCL shipping for this shipment are the higher cost per unit, the slower delivery time, and the less security and control.
    • Conclusion: For this shipment, FCL shipping is more suitable than LCL shipping, as it offers more cost-effectiveness, speed, and protection for the bulky and fragile cargo.
  • Case study 2: A clothing retailer who wants to ship 10 cubic meters of cotton shirts from Shanghai to London in June 2024. The shipment is urgent, but the cargo is light and durable.
    • FCL shipping: The clothing retailer can use a 20-foot container to ship the cotton shirts, which can fit 28 cubic meters of cargo. The estimated cost of FCL shipping is $2,000, which includes the freight rate, the origin and destination charges, the insurance, the customs and taxes, and the additional services and fees. The estimated delivery time of FCL shipping is 25 days, which includes the loading and unloading, the transportation, and the clearance. The advantages of FCL shipping for this shipment are the lower cost per unit, the faster delivery time, and the more security and control. The disadvantages of FCL shipping for this shipment are the higher cost per container, the more waste and environmental impact, and the less availability and accessibility.
    • LCL shipping: The clothing retailer can use LCL shipping to ship the cotton shirts, which will occupy 10 cubic meters of container space. The estimated cost of LCL shipping is $1,500, which includes the freight rate, the origin and destination charges, the insurance, the customs and taxes, and the additional services and fees. The estimated delivery time of LCL shipping is 35 days, which includes the consolidation and deconsolidation, the transportation, and the clearance. The advantages of LCL shipping for this shipment are the lower cost per container, the less waste and environmental impact, and the more availability and accessibility. The disadvantages of LCL shipping for this shipment are the higher cost per unit, the slower delivery time, and the less security and control.
    • Conclusion: For this shipment, LCL shipping is more suitable than FCL shipping, as it offers more cost-efficiency, eco-friendliness, and diversity for the light and durable cargo.

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