FCL Shipping: The Complete Guide to Shipping Procedures, Containers, and Pricing

FCL definition

FCL describes sea shipping for cargo loads large enough to fill a 20’ or 40’ shipping container. 

Unlike LCL – less than a container load – where shipments share container space with other goods, FCL shipments use the entire container. That means the container is loaded and sealed at the factory and unloaded when it reaches the destination warehouse.

The benefits and drawbacks of shipping FCL

There are a number of benefits to shipping FCL: 

FCL shipments don’t need to be loaded and unloaded together with other shipments, which saves transit time.

Sealing containers at the factory means less handling and fewer opportunities for damage.

Price per unit on LCL is high, so for larger shipments, paying the FCL flat fee saves money.

Air freight is the fastest way to ship. But if you have the time, you’ll save big choosing FCL instead.

Here are some drawbacks of shipping FCL: 

Shipping larger quantities means finding and paying for more inventory space.

For small loads (approximately 13 CBM or less) FCL will probably be more costly.

Delivering a full container means you’ll need equipment and personnel that can handle the job, which not every factory has.

When you ship FCL, delivery can get more complicated as you’ll be dealing with large shipments in small windows of time.

How much does it cost to ship a shipping container?

When you ship FCL, you pay a flat fee for the entire container, regardless of how much is in it. 

But, once your shipment gets to be large enough – usually around 13 CBM, depending on your goods – it becomes well worth paying the flat fee because cost per unit on LCL is much higher. 

Here are some other factors that affect FCL pricing: 

GRIs (General Rate Increases). These are container price increases that carriers can implement at the beginning and middle of each month, usually in response to demand.

Peak season price spikes. Peak season hits when businesses ship at higher volumes to make sure their supply is ready for the holiday shopping season. For FCL, peak season is typically between August-November.

Holiday delays. Shippers from China need to account for the Chinese New Year, usually in February, and Golden Week in fall, which are week-long holidays that impact demand and prices. Wherever your origin and destination, make sure to check the local calendar for important holidays.

FCL rates & prices year over year

Here’s an illustration of how FCL prices have changed over the past year:

FCL rates and prices

The above is an illustration of 40’ FCL prices from East Asia to the US West Coast. Notice that FCL prices have increased dramatically since the outbreak of the pandemic. While regular fluctuations occur during the year, these price increases are not standard and therefore you should be prepared for higher prices than normal for FCL shipping. 

It’s worth noting that LCL prices are not typically subject to the same price fluctuations as FCL, instead remaining largely stable throughout the year. This is mostly due to the fact that pricing structures for LCL and FCL are very different: in an FCL shipment, the majority of the cost comes from the actual sea journey, whereas for LCL, the most significant costs cover loading and unloading. That means that for LCL, actual freight price changes are not as impactful. 
Additional FCL costs & fees

Customs Bonds

Anytime you ship to the US, you’ll need a Customs Bond. If you ship infrequently, you can opt for a single-entry bond. If you ship at higher volumes, consider an annual bond. 

Duties and Taxes

Sometimes shippers can be caught off-guard by how much customs and taxes add to their total costs, so make sure to plan ahead. This is especially true if you are shipping from China and possibly subject to the tariffs implemented in the past several years. 

Demurrage and Detention

When your container arrives, there will be a period of time, usually four days in the US, when it can wait at the port free of charge. After this time, you will be charged a fee known as demurrage until you pick up your container. Demurrage charges vary by country, and in the US can turn into hundreds of dollars pretty quickly. Make sure your forwarder clears customs and collects the container from the port in a timely fashion. 

Similarly, once your goods are picked up, you have a window of time until the container must be returned to the port, usually four days as well. After this, detention charges kick in, and like demurrage, they can add up fast. 

There are also waiting time fees to consider. Typically, trucking companies allow 1-2 hours for the driver to wait for your container to be unloaded at the warehouse, and then charge additional fees by the hour. 

Port Congestion Surcharge

If you ship to a popular port, you may end up with a congestion surcharge. That’s something to check with your freight forwarder when deciding on your destination port.

Expert tips for getting the best FCL pricing

If you’re shipping FOB, make sure to specify your origin port with your seller.

Shippers sometimes try to book FOB while providing only the origin country, and not the specific port – but prices can vary depending on your port. Specifying makes it more likely your price quote will be accurate. 

Book well in advance of your pickup date.  

As carrier space fills up, finding the best price becomes increasingly harder. Booking in advance gives you the best chance of getting the best price. Extra lead time is especially important during peak season. 

Know your shipment’s precise weight. 

If you know your shipment’s weight, you and your forwarder can determine what containers and equipment you’ll need, both for the sea journey and the inland trip to your factory. This is especially important because weight limits for sea vessels are not the same as weight limits for rail and trucking. The US, in particular, has tighter weight restrictions on inland trucking weights than Europe, and if you don’t plan for this, you might get hit with extra charges for special equipment.

Get important delivery information from your warehouse. 

More specifically, find out: 

Is the warehouse dock height? That is, is the place where your container will be unloaded the same height as the dock and the truck? If extra maneuvering is necessary, there might be extra charges.

Can the warehouse offload quickly? Longer deliveries can mean more fees.

Avoid shipping during peak season. 

Prices go up, supply gets tight, and it’s harder to get your goods on time. Plan in advance as much as you can.

FCL shipment procedure

FCL ship procedure

What is the procedure for delivery and unloading at my warehouse? 

There are two types of warehouse deliveries: live and drop. 

In a live unload, the container is unloaded while the driver waits. As we said above, there are usually 1-2 free hours allowed for a live unload. 

Sometimes, when a warehouse is particularly busy, or lacks the necessary equipment to do a fast unload, you’ll want to do a drop. This means the driver drops the container off and picks it up again when unloading is complete, usually a day or two later. 

Drop tends to be more expensive than live since it requires two trips by the driver. On the other hand, if you’re likely to have waiting time charges, drop could be the more affordable option. And sometimes, if the warehouse simply cannot unload the same day, drop is the only option. 

For shippers who ship frequently enough, a drop-and-pick option might be a good one: drop off one container and pick up another, from a different shipment.

How long does FCL shipping take? 

Shipping by FCL generally takes around 3-6 weeks, depending on your origin and destination. 

Occasionally, shipments can get “rolled,” which means the container doesn’t get loaded onto the ship it was supposed to travel on, usually due to overbooked capacity. 

To prevent rolled shipments to the extent possible, book in advance and make sure all your paperwork is in order. 

Should I get a tender for FCL shipping? 

If you ship more than 500 TEUs per year, it might be worth considering a tender, or annual shipping contract.

FCL container size and dimensions

Here are container dimensions for the two standard container sizes, 20′ and 40′:

20 ft container

1 TEU & FEU

A TEU is another name for a 20ft container– it stands for a twenty-foot equivalent unit. 

A FEU is another name for a 40ft container– it stands for a forty-foot equivalent unit.

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