LCL vs FCL: which sea freight suits a first order

Sea freight from China comes in two basic forms. FCL (full container load) means you book a whole container and only your goods go in it. LCL (less than container load) means your cartons share a container with other people's goods. For a first order of BBQ accessories, the choice usually comes down to how much space your cartons take, how much handling they can stand, and how many fixed charges your order can carry.

Any dollar figures below are an illustrative example, not real freight rates. Rates move week to week, so always compare real quotes from your freight forwarder.

How FCL works

• You book a whole container, usually a 20 foot or 40 foot standard container, and pay for the box whether you fill it or not. Maersk's published specifications give a 20 foot standard container about 33 cubic metres inside and a 40 foot about 67.
• The container is usually packed and sealed at or near the factory, then opened again at its destination, so your cartons are handled less on the way.
• At the Australian end it is cleared as one consignment and can be delivered to your door in the container, or unpacked at a depot first.

How LCL works

• Your forwarder books space in a shared container. Your cartons go to a warehouse in China (a container freight station), are packed in with other shippers' cargo, and are unpacked again at a depot in Australia.
• You pay by the space your cartons take, usually by the cubic metre (CBM), or by weight if the cargo is heavy for its size. Your forwarder tells you which rule it uses.
• On top of the per CBM rate there are charges per shipment at both ends: handling at the warehouse in China, unpacking and handling at the Australian depot, documents and delivery. On a small order these can add up to more than the sea freight itself.
• Your cartons move through more hands, and the shared container cannot be unpacked until it has arrived and been processed, so allow more time and pack well.
• Australian customs cargo reporting treats a container as LCL when it carries consignments for at least two different consignees in Australia.

Biosecurity and shared containers

In a shared container, one consignment can hold up the rest. Each year from 1 September to 30 April, the Department of Agriculture, Fisheries and Forestry (DAFF) manages LCL containers carrying target high risk goods from target risk countries at container level for brown marmorated stink bug, before they are unpacked. Where treatment is needed, no unpacking is allowed until it is done. Whether that touches your shipment depends on the goods and the countries involved, so ask your broker, and allow for it in the season.

Measure first

You cannot choose until you know the volume. Ask the factory for the carton size, the units per carton and the gross weight per carton, then put them in the CBM calculator. It shows the total CBM and a best case fit for a 20 foot and a 40 foot container, using typical inside sizes. Real loads fit fewer cartons than the best case.

An illustrative comparison

These are made-up numbers to show the method only, not quotes.

• Example LCL: A$100 per CBM plus A$600 in fixed charges per shipment.
• Example FCL, 20 foot container: A$2,800 all in to the same point.
• Example order of 8 CBM: LCL is 8 x A$100 + A$600 = A$1,400. FCL is A$2,800. LCL wins.
• Example order of 24 CBM: LCL is 24 x A$100 + A$600 = A$3,000. FCL is A$2,800. FCL wins, even though the container is not full.

The point is not the numbers. It is that LCL rises with every CBM while FCL is a flat price per box, so there is a crossover volume, and you find yours by getting both quotes for your real cartons. Ask each forwarder to quote to the same point (for example, cleared and delivered to your warehouse) so the totals compare.

Decision rules

• If your order is a few cartons or a small share of a container, start with an LCL quote.
• If your volume is close to the crossover, get both quotes. A part-filled FCL can still cost less, and it is handled less.
• If the goods are fragile, high value or easily scuffed (polished stainless, printed boxes), weigh the extra handling of LCL against the price.
• If your shelf date is tight, ask how long the depot usually takes to unpack LCL at your port, and add it to the order timeline planner.
• If you are not sure of the volume, measure the cartons first. Do not guess from the unit count.

Common mistakes

• Comparing an LCL rate per CBM with an FCL price per container without adding the LCL fixed charges at both ends.
• Quotes to different points: one to the Australian port, another to your door.
• Forgetting that solid timber pallets and crates must meet Australia's import conditions, such as ISPM 15, whichever way you ship.
• Packing to the factory's habit rather than for a shared container that will be unpacked and repacked.
• Assuming a container holds its full inside volume of your cartons. Gaps, pallets and weight limits mean less.
• Not checking the Incoterms rule on the quote, so nobody knows who books the freight. See Incoterms in plain English.

Next step

Work out your volume in the CBM calculator, then put your freight quote into the landed cost calculator to see the cost per unit after duty, GST and charges. The GST and duty worked example shows where freight sits in the sum.

Common questions