In an FCL owned by one shipper, the cargo in the container need not have fully loaded cargo in the container. Let the cargo be half loaded or quarter loaded container, if booked by one shipper under one shipment, the said shipment is called FCL shipment. What is LCL? Under an LCL cargo, where in a shipper does not have enough goods to accommodate in one full container, he books cargo with a consolidator to console his goods along with goods of other shippers.
This type of shipment is called LCL shipment. The said consolidator arranges a fully loaded container FCL , and consoles the shipments of other shippers and deliver each shipment to final destination by separating each shipment at final destination. How to export goods from India? Export benefit schemes in India. Export procedures and documentation. How to get Export Order? How to import goods to India? Find ITC code of your product.
Export benefit schemes from Export Promotion Councils. Do pro- forma invoice accepts for import customs clearance? Transshipment - A redefinition.
How to start Export Business? What are the risks and solutions in Export Business? In LCL, the goods are stuffed into the container only after the freight forwarder receives sufficient cargo to fill the container. With multiple cargoes, there might be multiple trans-shipment ports, which can delay the arrival of the cargo at the port of destination.
So, while selecting LCL, the exporter must find out the container stuffing date, the carrier itinerary, the trans-shipment schedule, and the expected date of arrival. But when it comes to choosing between the two, an exporter has to balance the cost of the shipment with the convenience and speed of the logistical process.
Also Read: Export Logistics and its Process. Containers are a convenient way of shipping cargo to overseas destinations. They are made from durable materials such as steel, aluminum, fiber polymer, etc. The size of containers is as per the specifications defined by the International Organisation for Standardisation ISO.
They come in standard dimensions, with lengths that can be of 8, 10, 20, 30, or 40 feet. Trade Advice. Shipment Cost In terms of total costs, booking an FCL container will be more expensive given the sheer volume. Several essential considerations decide which of the two load options is best for you. Also Read: Export Logistics and its Process Containers are a convenient way of shipping cargo to overseas destinations. It is more accurate to say that he has exclusive rights to the container.
However, it is usually seen that FCL shipments are large. FCL shipping is different from LCL shipping, where multiple shippers share a container for their goods — which are usually smaller — and pay only for the volume they need. To find out more about the types of containers used in the international shipping process, read our blog here. In FCL shipping, you pay a flat rate for the container called a commodity box rate.
An FCL quote usually includes:. Availability: As with all businesses that operate on a demand-supply model, ocean freight rates rise and fall with the availability of containers and space on carriers. Peak season price spike: Ocean freight demand peaks in India in February-March when the annual agricultural harvest is exported. This is called the peak season or high season. Internationally, the shipping peak season is from August to November ahead of the holiday shopping season Thanksgiving, Christmas.
This is called GRI. It can be announced at the beginning of the month or mid-month. A GRI usually happens once a year in a stable market but there have been instances of multiple GRIs in a year or none at all. BAF Bunker Adjustment Factor : A fee levied by carriers to negate the impact of fuel price fluctuations on their operations. It might change monthly or quarterly and differs regionally.
The formula to calculate BAF is:. It is also charged on the basis of TEUs. Canal surcharge , which is applied while crossing a canal like the Panama Canal. War risk surcharge , which carriers might charge for the potential extra cost incurred on sailing in troubled waters under threat of war, insurrection, piracy, etc. This happens at certain ports that have export traffic but little import traffic.
Documentation expenses charged by carriers for issuing a bill of lading , for example. When it comes to additional expenses, demurrage and detention are words that often leave first-time FCL shippers grimacing over an unexpected bill. What do they mean?
Demurrage and detention charges as well as free time vary as per carrier and country.
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