Friday, April 22, 2016

How FCL & LCL Works Through China Manufacturing



With the rapid growth in China manufacturing, more and more businesses and individuals are importing products from China, due to lower costs. Ocean freight shipping is the ideal option for bulk cargo transportation. In fact, sometimes it is the only option. When shipping from China, importers can choose FCL, or LCL, if their cargo volume doesn’t meet the requirements for a full container. Sea freight is not restricted to businesses importing large quantities of products from China. Small cargos, measuring only 1 m3, can be shipped together with shipment from other importers. Though shipping by the container load is not always as costly as most people think, and shipping a full container load costs less compared to shipping small volumes, companies still have a choice with China manufacturing.



FCL & LCL Through China Manufacturing

Full Container Load Shipping - FCL

This is an international standard referring to one 20" or 40" container load for a single importer. This type of shipping is the most cost effective mode when importing from China. However, in order to work, it requires the purchase of a fairly large volume of products. Some benefits of FCL include: • Lower cost per cubic meter compared to the same weight or volume of cargo transported by LCL. • Lower risk of damages, and higher level of security due to less cargo handling. • Convenient optimization of export packaging and quantity to maximize usage of container space.

Disadvantages: • FCL is non-viable unless the cargo volume equals 50% to 70% of the container.

Less than Container Load Shipping - LCL

This standard of shipping refers to cargo owned by different importers that are grouped together in the same container. LCL allows businesses to import smaller amounts of cargo that isn’t large enough to make FCL a viable option. Advantages of LCL include: • An affordable option for cargo that is too heavy for airfreight, yet insufficient to make FCL a viable option. • Convenient lower packaging material costs, and cargo inspections in case repacking is necessary.

Disadvantages: • More expensive than FCL. • Non-viable for cargo volumes above 15 cubic meters; due to higher loading, unloading, freight cost, and handling.

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