Freight forwarders have seen a decline in the market since the recession hit; however, it is now seeing a resurgence as businesses restart expansion plans. During this period, FCL freight first became popular, and companies were looking for ways to save money wherever possible.
For those unfamiliar with FCL freight, here is everything you need to know about FCL shipping from Shipco.
In recent years, LCL shipment has been rapidly replacing FCL shipments because of its shorter process time and lower cost than FCL shipping. However, many industry experts believe that FCL provides more value than LCL regarding speed.
Imported in bulk vs. piecemeal
FCL freight can be imported in bulk, not piecemeal like LCL shipment, which means the goods are physically stored in a warehouse until they can be shipped out.
It takes an average of ten days for FCL shipments to go from one end of the journey to another. All cargo needs to be checked and cleared by customs authorities before being allowed into a country.
With FCL freight, several security layers need to be breached – first at the warehouse entrance and then at customs – which adds time to the process. All this may seem like an unnecessary hassle. Still, it ensures that every item making its way into a country has been carefully inspected and doesn’t pose a risk to public safety.
Breakbulk
On the other hand, LCL shipment is a process that requires manufacturers to breakbulk – that is, instead of shipping the items in one go, they need to be divided into consignments and shipped separately.
It means more individual processes have to occur before an entire order can be completed. In addition, there are multiple shipment documents for each part of the process, which also increases processing time and paperwork. It is why it takes anywhere from 15-20 days on average for LCL shipments from China from being shipped out to reaching their destination port.
Speed
However, while FCL freight has been known to take slightly longer than LCL shipments when it comes down to speed, many believe that the cost difference is what can sway you towards FCL shipment over LCL. While the price of sending out an LCL shipment may seem cheaper upfront, it will cost more to have each item shipped which means your margins are being compromised. Since the entire process needs to begin again once a single part of your order arrives, costs start piling up, especially if the goods need to be brought back for any reason.
Protection and processing times
On the other hand, FCL shipments are given both more excellent protection and shorter processing times than LCL because they only require one clearance process. All cargo is stored together in one warehouse also means that security is tighter than with LCL shipments. Different packages are stored in different locations at separate times during transit. All these factors together make FCL freight faster and safer than LCL.
What is the superior choice?
On the whole, while both services have their benefits and shortcomings depending on what you are shipping, many industry experts agree that FCL shipment is the superior choice when it comes down to speed alone.
It can be attributed to two reasons: firstly, all cargo is stored together in one place, which speeds up the process; secondly, with FCL shipment, there is only one clearance process to go through as opposed to multiple smaller processes for each part of an order which adds time onto the overall process.
However, if cost is a significant factor for you and your margins aren’t compromised by choosing FCL over LCL, it may be wise to opt for LCL because of its lower upfront price.
In conclusion
With so many options to choose from, it’s essential to weigh your options and see what works best for your specific needs rather than just opting for the cheaper alternative because, in terms of speed, FCL is significantly faster than LCL shipment. It means that you will get your products in a much more timely manner and avoid unnecessary hassles or delays.
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