“What you need to know about FCL by sea
FCL Definition
FCL describes the ocean freight of a cargo large enough to fill a 20′ or 40′ container.
Unlike LCL – Less than Container Loads – where cargo shares container space with other cargo, FCL cargo uses the entire container. This means that the containers are loaded and sealed at the factory and unloaded when they arrive at the destination warehouse.
What does FCL stand for?
FCL stands for Full Container Load.
Advantages and Disadvantages of Shipping a FCL
has many benefits:
FCL shipments do not need to be loaded and unloaded with other shipments, saving shipping time.
Sealing containers at the factory means less handling and less chance of damage.
The unit price of LCL is high, so for larger shipments, paying the FCL flat fee can save money.
Air freight is the fastest shipping method. But if you have the time, you will save a lot by choosing FCL.
Here are some of the disadvantages of shipping a full case:
Bulk shipping means finding and paying for more inventory space.
For small loads (about 13 CBM or less), FCL can be more expensive.
Delivering a full container means you need equipment and people who can handle the job, and not every factory has it.
When you ship FCL, delivery can get more complicated because you will be dealing with large quantities in a very short period of time.
How much does it cost to ship a container?
When you ship a full container, you pay a flat fee for the entire container, no matter how many are inside.
But once your shipment gets big enough – usually around 13 CBM, depending on your shipment – it becomes well worth paying the flat fee as the cost per unit of LCL is much higher.
Here are some other factors that affect FCL prices:
a) GRI (General Rate Increase): Carriers can introduce price changes for containers at the beginning and middle of each month, usually in response to demand, Pro Tip: If a freight forwarder charges you, GRI requires consultation with the carrier to share the notice to Ensure the authenticity of charges.
b) Peak season price surcharge: When the peak season comes, companies ship in large quantities to ensure their supply is ready for the holiday shopping season. For FCL, peak season is usually between August and November.
c) Holiday delays: Shippers from China need to consider the Spring Festival (usually in February) and the Autumn Golden Week, which are week-long holidays that affect demand and prices. Wherever your origin and destination are, be sure to check your local calendar for important holidays.
Factors Affecting FCL Rates
Availability: As with all businesses operating on a supply and demand model, ocean freight rates rise and fall with the availability of container and carrier space.
Peak season prices soar: India’s seaborne demand peaks in February-March, when annual agricultural exports are on the rise. This is called peak season or peak season. Internationally, the peak shipping season is August to November before the peak holiday shopping season (Thanksgiving, Christmas).
Holiday Delays: Sea freight demand and prices tend to rise before major holidays such as Chinese New Year, Golden Week (China), Eid al-Fitr, etc.
GRI (General Rate Increase): Container rates are regularly adopted by carriers based on supply and demand. This is called GRI. It can be announced at the beginning of the month or in the middle of the month. GRIs typically occur annually in stable markets, but GRIs can occur multiple times a year or none at all.
Additional charges you must know about FCL shipping:
a) Requirements for Custom Bonds:
A customs bond is required whenever you ship to the US, so if you ship regularly, then you should opt for an annual bond. If you ship infrequently, then you might consider a single entry letter of guarantee.
b) Taxes and duties:
If businesses don’t want to be caught off guard by tariffs and taxes, they should plan ahead for them. Tariffs have changed a lot over the past few years, so you can use the import tariff calculator available online to estimate the cost of your customization.
c) Demurrage and Demurrage:
When your container arrives in the US, it can wait at the port for free, but after that, you will be charged demurrage until the container is picked up. These fees vary by country and can add up quickly. So be sure to clear customs and receive the goods in time. Empty containers also need to be returned to the port within a given time frame.
d) Port Congestion Surcharge:
If you’re sending your cargo to a popular port, you may be charged a congestion surcharge, so choose your destination port carefully.
Methods of filling and delivering FCL containers
CFS Stuffing: Popular among Indian shippers, cargo is delivered to a Container Freight Station (CFS) near the port and stuffed into empty containers. Customs inspection and cargo clearance are completed by customs agents before packing.
Live Load: The shipper has a freight company deliver an empty container to his warehouse, where he loads and seals it, while the driver waits to drive it back to the container yard. Live loads are free if completed within a specified time (usually a few hours), with an hourly surcharge thereafter.
Drop and Pack: An empty container is dropped at the shipper for a few days, after which the driver returns to bring it back to the container yard. It costs more than live loading.
Likewise, when the container arrives at the destination warehouse, on-site unloading can take place while the driver waits on site, or the driver can leave the container for a few days and return.
For FCL shipments, you can choose from door-to-door, door-to-port, port-to-door, and port-to-port services.
FCL delivery process:
There are two types of FCL shipping procedures, one is Dock stuffing, Shippers Transporter collects the goods on their trucks and hand them over to the determined container freight station, the goods are unloaded at CFS, after all formalities are completed, the goods are stuffed into the designated containers and handed over to The carrier loads the ship, in this case the potential for damage is high because there are multiple touchpoints to handle the shipper’s cargo and the shipper does not have physical access to his cargo while loading, whereas in the second case The following method, known as factory loading, cargo is loaded and sealed at the shipper’s factory or loading location. To this end, exporters should obtain the necessary permits to move empty containers from CFS and cargo to their factories and seal them under the supervision of customs officials.
Final FCL List
You can now book the complete container. But before that, a few final tips:
Book early to get the best price
Weigh your cargo accurately so you know the containers and equipment you need for ocean and inland transportation
Consider the possibility of your cargo tipping over. This can happen due to negligence on the part of the carrier (overbooking, skipping ports) or the shipper (paperwork, non-compliance issues). You can’t control the former, but you can avoid mistakes by booking ahead, skipping peak seasons whenever possible, working with a trusted freight forwarder, avoiding forwarding, and most importantly, delivering your shipments on time. Rollovers may incur additional charges.
Pack your goods safely. Think of all the jostling it will endure in transit. Learn the proper way to pack products into containers.”
