What is FCL shipping? The guide to full container load shipping

FCL, LCL, P2P—the logistics world is riddled with confusing acronyms. Yet, success and cost savings are driven by understanding the details and learning to navigate the nuances.

Ocean freight is a convenient, cost-effective option, especially when it comes to big, heavy goods. But, like any mode, there are benefits and drawbacks to consider when shipping Port-to-Port or Peer-to-Peer (P2P). 

Shippers can connect directly with an Uber Freight expert to navigate these complexities and explore ocean freight options to maximize Full Container Load (FCL) shipping efficiency.

What is FCL shipping?

Full Container Load (FCL) is a term used in sea freight for shipments where an entire container is consigned to and paid for by a single shipper or consignee. Whether filled to capacity or not, the load is not shared with other shippers, and therefore, unlike Less-than-Container Load (LCL), the container is sealed after loading. LCL, on the other hand, involves sharing container space with other shippers, where each shipper pays only for the portion of the container they use, making it cost-effective for smaller shipments.

FCL container types and dimensions

Used to carry about 90% of the world’s cargo, dry containers are the most widely used type of container in the world. Although they come in various sizes and capacities, the two most common are 20’ and 40’ in length.

Referred to as “dry” due to their lack of temperature control, the standard 20’ and 40’ containers are typically used for a multitude of cargo types, from heavy, non-voluminous cargo such as cement, furniture, minerals, metal, machinery, paper, sugar, steel pipes, and coils. Cargo is generally packed onto pallets and/or in boxes. Top and bottom longitudinal rails and corner posts, along with various lashing equipment like twist locks, bars, fittings, and turnbuckles, are used to secure the cargo and keep it safe.

Another commonly used container, the 40’ high cube (40HC), has taller dimensions and can fit taller cargo, but as it can hold a similar weight to the standard 40’, it is more suitable for lighter cargo.

Refrigerated containers

Designed to preserve perishables such as flowers, food and pharmaceuticals during transport, refrigerated containers also come in 20′ and 40′ high cubes containing electrically operated cooling and heating units that maintain temperature within different ranges, depending on container type.

• 20′ Standard Reefer: -30C to +30C
• 40′ High Cube Standard Reefer: -30C to +30C
• 40′ High Cube Magnum Reefer: -35C to +30C
• 40′ High Cube StarCare™: -30C to +30C
• 40′ High Cube Super Freezer: -60C to -10C

Other specialized container types

The below container types have particular dimensions and characteristics meant to transport non-standard or odd-sized cargo that can’t be loaded or don’t fit in standard containers.

• Open top container: The best option for overheight cargo that can’t be loaded through a door, open top containers are also available in 20’ and 40’ lengths, have a removable tarpaulin, and can be loaded by the top side or door side. 
• Platform: Easy to load as it has no side walls or roof, platform containers are suitable for shipping overweight and odd-sized goods such as construction equipment and materials, machinery, airplane parts, and yachts. As they have no roof, door or sides and are constructed with extremely strong bottoms, platforms are useful for heavy and oversized loads.
• Collapsible and non-collapsible flat rack: Featuring hinged walls that can be folded or detached, these containers are best used for out-of-gauge (OOG) cargo that is too large to fit or can’t be loaded onto a standard container. 
• ISO tank: Designed for the safe and efficient transport of non-hazardous and hazardous liquid and gaseous cargo, ISO tanks are cylindrical in shape, come in 20’ and 40’ lengths as well as 10’ and 30’, and are made of strong steel or other anti-corrosive materials that protect the life of the liquids.

Note: Container specifications may vary depending on the manufacturer.

The FCL shipping process

Shipping by sea can get complicated. But don’t worry; an ocean freight forwarder will arrange every leg of the journey from door to door, liaising with transport operators, shipping lines, and port authorities to facilitate the entire transfer. 

Although transit time is dependent on a number of factors, as a rough guide, from door-to-door, an FCL shipment can take anywhere from 30 to 45 days.

Here are the steps involved.

Step 1: Booking with a freight forwarder

Freight forwarders should provide options for the size, weight, and type of load being booked. Upon receipt of quotes, review the options, including costs, delivery times and incoterms. Understanding the incoterms will ensure shippers and consignees know exactly what they will be paying for and any additional fees they’re responsible for.

Once the right carrier is selected, schedule a pickup for a specific time and location. Shippers will need to provide detailed information regarding the shipment, such as dimensions, weight, and any special handling instructions. 

Ensuring accuracy and thoroughness of the information provided, including any specific pickup or delivery requirements like time constraints or loading or unloading procedures, will ensure a smooth pickup process and help avoid any delays or additional fees.

Step 2: Documentation

Bill of Lading or Sea Waybill. Once possession of the shipment has been turned over and the carrier has taken control of the goods, they should provide an Ocean Bill of Lading (OBOL). Acting as a receipt of sorts, the BOL is a transportation contract that confirms the party in control of the cargo and all critical shipment details.

An “express BOL,” can be used if the following applies:

• The goods will not be traded or sold during transport.
• There is a high degree of trust between the shipper and the consignee
• The goods are paid for with an approved line of credit.
  

When a sale is not involved, sea waybills allow for faster, easier transactions. As ownership of the goods does not change, no proof of ownership is required, and carriers can release containers at the port of discharge directly to the stipulated receiver. If the shipper would like to release the goods to a recipient not named on the sea waybill, they can use a letter of subrogation.

Commercial invoice: As the importer of record, the shipper will need to provide the forwarder and importer of record with a customs invoice, including a declaration of the value of the goods being imported, which will be used to assess tax and duties.

‍Packing list: The shipper will need to provide a packing list with the weight and dimensions of the items being shipped.

Other: Depending on the item being shipped, the shipper may need to provide additional documents like a Safety Data Sheet (SDS), IMO Dangerous Goods Declaration or Certificate of Origin (COO).

Step 3: Export haulage

Export haulage–moving the load from the point of pickup to the freight forwarder’s warehouse–is the first physical step of the FCL  journey.

Container loading: With FCL shipping, goods are loaded directly onto the container at the shipper’s warehouse or facility. The shipper is responsible for ensuring proper labeling, packaging, and loading.

Step 4: Export customs clearance

Once the container is loaded and sealed, the truck will take it to the port of origin, where the cargo undergoes customs clearance procedures. Customs officials will review all documentation and may examine the cargo to ensure adherence to export regulations and confirm the provided information. When the shipment has cleared customs, the cargo is loaded onto the selected ocean vessel.

Step 5. Transportation

The container will travel either by direct vessel, where there are minimal stops on the way to the final port, or transshipment service, which means there will be multiple stops along the way to the final port. Which type of vessel the container is loaded onto will be a determining factor in the total transit time of the trip.

Step 6. Import customs clearance

Upon arrival in the destination country, import customs clearance must be completed to ensure the cargo complies with local regulations.

At this stage, any delays in customs clearance or pickup can lead to demurrage charges. Using an experienced freight forwarder can help ensure shippers avoid these unexpected fees that can substantially increase the total shipping costs.

Step 7. Import haulage

The final step is import haulage, transporting the freight from the final port of discharge to its final destination.

Once the container clears import customs, either the ocean carrier or the freight forwarder will have it delivered to their warehouse for processing and then trucked to the final destination address, or the shipper will need to arrange for a truck to pick it up at the port of destination and deliver it to the final destination.

Unless the container was inspected by customs, it should arrive at the destination address unsealed, where it will be opened and unloaded. The addressee is liable in the case of damage during unloading. If shippers use a freight forwarder, they will then have the container delivered back to the port. Otherwise, the shipper is responsible for arranging this leg of the trip. Again, any delays may result in detention charges (a fee charged for holding onto a container for loading or unloading beyond the allotted time).

Pros & cons of FCL shipping

Although FCL can often be a cost-positive freight solution, it’s not always ideal. An understanding of the pros and cons of FCL shipping will help shippers to make an informed decision. For reference, below are the main benefits and drawbacks of FCL shipping.

Pros of FCL shipping

• Safety: As the goods are loaded and sealed at the point of origin and experience less handling, this greatly reduces the risk of damage or theft during transit. 
• Transit time: FCL typically has a faster transit time as it avoids the need for consolidation with other shipments 
• Cost: Depending on utilization, FCL can be more economical for larger shipments compared to LCL and is cheaper than airfreight.
• Less complexity and risk: LCL is more complex and requires many additional steps, including consolidating different shipments, processing multiple sets of documents per container, and sorting goods for each consignee. This complexity adds risk and potential for delays.

Cons of FCL shipping

• Costly for smaller shipments. Because shippers are paying for the entire container, the less shipped, the higher the cost per unit. There will be a volume threshold where it would be more cost-effective to ship LCL.
• Repositioning fees. If an export container isn’t available at the port nearest to the pickup location, shippers will need to pay an empty container repositioning fee.
• Other fees. As the single consignee, shippers will be fully responsible for all demurrage and detention fees if the container isn’t unloaded and returned promptly.

Understanding FCL Pricing and Costs

The base ocean freight rate is the rate for shipping cargo from the point of pickup to the final point of destination. In some cases, this rate may be all-inclusive, including fuel surcharges. Rates are calculated based on a combination of factors, including the distance traveled, type of cargo, and any additional services required. 

However, depending on the shipment type, route, final destination, and other factors, additional elements may be factored into the overall FCL price. Here’s a list of some of the fees and surcharges shippers may encounter.

• Customs clearance fees: This fee is charged to cover the administrative costs of the necessary procedures and processes that go into customs clearance. The fee may also include extra inspection or transportation charges.
• Bunker Adjustment Factor (BAF)/ fuel surcharge: Normally a monthly or quarterly fee based on the number of TEUs (twenty-foot equivalent unit), BAF helps carriers manage the volatility of fuel prices by adjusting surcharges based on current fuel costs. 
• Peak Season Surcharges (PSS): PSS is a variable surcharge that covers the extra costs of managing high-volume shipping periods as well as demand/ supply fluctuations. It’s typically implemented in the summer peak season for imported goods shipping for fall and winter holidays
• Canal transit fees: In the case of a canal crossing such as the Suez or Panama Canal, a surcharge may be applied.
• Terminal Handling Charges (THC): Charged by the terminal for loading and unloading containers, the fee is passed onto shippers via the freight forwarder.
• Inland delivery charges: Applied to cargo that is shipped port-to-door, door-to-port, or door-to-door, the inland delivery charges cover the ground transportation portion of the trip.
• Congestion Surcharge: If shipping to a port with congestion, a charge is typically added at a cost per TEU.

FCL vs LCL — Which is better for your shipments?

Generally speaking, LCL is best suited for small volumes with long lead times, and FCL for large or high-value shipments. 

But in the end, the choice between shipping FCL or LCL will depend on the specific circumstances, including, the value of the shipment, the type of product shipped, delivery time requirements and warehouse capacity. 

Ocean freight solutions with Uber Freight

Leverage Uber Freight’s tech-enabled Ocean and Air services for unparalleled transportation solutions. Our team of experts and data scientists ensures real-time visibility and reporting, empowering shippers with holistic insights. Drive logistics excellence with our innovative technology and trusted outcomes. 

Our international shipping services include:

• Global transportation management
• Freight forwarding (NVOCC, OTI, OFF)
• Customs brokerage and compliance
• Ocean and air freight 
• Customized port drayage
• Operations technology integration
• Ocean and air tracking and visibility
• Procurement and benchmarking

Connect with an expert today to learn more about Uber Freight’s efficient and reliable ocean freight solutions.