In freight forwarding, FCL, LCL, and BCN refer to different containerized shipping methods and terms related to the transportation of goods. The terms primarily revolve around how much space is used in a shipping container, whether you have enough volume to fill a container, or whether sharing space with other shippers would be more cost-effective. Each method has benefits and considerations based on the shipment’s size, frequency, and nature. Let’s explore the differences and when choosing one method over another is best.
FCL (Full Container Load)
FCL refers to a single shipment that fills an entire shipping container, giving the shipper exclusivity. It is the best method and most cost-effective when you have enough goods to fill the entire container. Typically, depending on the shipping container itself, this applies to shipments with more than 20 cubic meters or 10-19 metric tons of goods.
FCL shipping requires less handling and results in a reduced risk of damage that could be caused by other packages in the shipment or the increased handling that occurs with other modes. The transit times are often faster than LCL, with handling needs limited to loading at the origin and unloading at the destination. Additionally, FCL shipping provides enhanced security when a container is sealed at the point of loading and not opened until the point of delivery. It is often the preferred option for fragile shipments, items of high value, or shipments that fill an entire container.
If your business has regular shipping needs, FCL allows for better planning and scheduling, as you can book containers in advance without having to share space with other shippers. There is often a more straightforward customs clearance process and fewer administrative processes because they involve only one shipment, simplifying documentation and compliance.
LCL (Less Container Load)
LCL refers to shipments that do not fill an entire container and may be consolidated with goods from multiple shippers to maximize container utilization. This method is generally the best option for shipments under 15-20 cubic meters or less than 10-15 tons. By sharing the container space with other shippers, you can also share the shipping costs, paying only for the space you use within a container.
LCL shipping is usually the best method when you don’t have regular, large shipments, are operating with budget constraints, and for occasional or seasonal shipping needs. It can provide greater flexibility without needing to adjust cargo release frequency to optimize container utilization. Another scenario in which LCL is beneficial is when you want to explore new markets or test products in a specific region.
If you have regular, consistent shipping needs, a freight forwarder can provide LCL solutions with fixed weekly departures and predictable transit times. However, it is essential to note that LCL shipping often requires more handling points to consolidate and deconsolidate goods from various shippers. The additional handling requirements can lead to a heightened risk for damage compared to FCL shipping and longer transit times throughout the process.
BCN (Buyers’ Consolidation Network)
Some global freight forwarders, like TOC Logistics, offer a logistical strategy called BCN or Buyers’ Consolidation Network. This approach allows customers to consolidate shipments from various suppliers into a single container heading for the same destination. It is particularly beneficial in international trade import/export operations.
As with LCL, consolidating shipments from various suppliers helps streamline the shipping process and optimize costs. The process is rooted in effective coordination and collaboration between customers, suppliers, and logistics providers. It reduces the complexity of managing separate shipments from suppliers and improves delivery times. It also lets customers place smaller orders with suppliers, allowing for flexibility in inventory management and purchasing strategies.
Once a shipment reaches a destination, the freight forwarder can set up multiple dedicated and/or consolidation trucks to run from the deconsolidation center regularly, according to your specific needs.
Considering different shipping methods in international shipping is essential for optimizing costs, ensuring timely delivery, managing risks, complying with regulations, and meeting the needs of a customer’s supply chain. Each method has advantages and drawbacks, and selecting the right one can significantly impact overall logistics efficiency.
TOC Logistics is a full-service freight forwarder with comprehensive offerings for global end-to-end logistics solutions. Our team focuses on key east-west routes between Europe/Asia and North America. In addition to offering FCL, LCL, and BCN shipping services, we have multiple weekly Direct Consolidated Services (DCS) and will soon be adding DCS from India – US & Germany – Mexico. Contact our team today to discuss your international shipping needs.