In an LCL shipping method, a shipper does not need an entire container for his goods. In other words, his goods don’t require one full container. He, therefore, books his cargo with a consolidator and accommodates his goods along with the goods of another shipper(s). The consolidator arranges for a fully loaded container (FCL), and consoles the shipments of the other shippers, and separates and delivers each shipment at the final destination.

LCL shipping helps a shipper to keep his inventory low, as it allows you to ship in lower volumes. As an importer, if you want to free up cash flow, this is the ideal method to choose; as this maintains a steady flow of inventory in smaller quantities. Smaller orders bring down inventory investment and allow shippers more flexibility. However, LCL does increase the risk of damaged goods, as you do not have control over the cargo that will be loaded with yours. Additionally, there might also be a risk of the shipment getting lost in-transit, as it goes to multiple destinations before reaching yours.

If a shipper has adequate amount of cargo to accommodate in one full container, he books an FCL. In an FCL shipping method, all the goods in a container are owned by one shipper. However, it doesn’t necessarily mean that the container will be ‘fully loaded’ with cargo. The cargo can be half loaded or quarter loaded. It only means that entire container is booked by one single shipper.

In an FCL method of shipping, the cargo delivery takes shorter time. The shipper saves on time and as soon as the FCL shipment arrives at the port, it’s unloaded from the vessel and delivered to the destination. FCL is also cheaper than LCL per unit of freight. There is higher security and fewer risks of damage or loss-in-transit. However, if you are shipping less than 15 cubic meters in a 20ft GP container, it is not very cost effective.