FCL or LCL — Getting the Choice Right

A full container or shared groupage: they differ in how freight is charged, in transit time and in risk

Comparison of full-container FCL and groupage LCL shipping
Criterion FCL – Full Container LCL – Groupage
How freight is charged Lump sum per container (20', 40', 40HC, 45HC) By CBM or tonne, whichever is greater (1 CBM = 1,000 kg)
When to choose it When the cargo fills most of a 20' container When the consignment is small and cannot fill a container
Transit time Faster — no waiting for consolidation, no deconsolidation at a CFS Slower — add consolidation time at origin and deconsolidation at destination
Cargo risk Low — the container holds only your cargo, sealed from the warehouse Higher — handled repeatedly, sharing a container with other shippers
Mode-specific surcharges Lift charges, and port detention if collection runs late Extra CFS charges at both ends, plus groupage handling fees
Delivery at each end Haul the container straight to the plant and stuff or devan at your own warehouse Collect loose cargo at the CFS warehouse; a truck is needed for the transfer

The break-even point between LCL and FCL shifts by route and by season. Send the dimensions, weight and destination port — CARIMEX will price both options so you can compare them on one sheet.

The eleven Incoterms 2020 rules and their points of risk transfer
Rule Seller Pays Main Carriage To Risk Passes to Buyer At Mode
EXW Nothing — the buyer arranges everything The seller's works or warehouse Any mode
FCA The point of delivery to the carrier On delivery to the carrier nominated by the buyer Any mode
FAS Alongside the vessel at the port of loading When the goods are placed alongside the vessel Sea / inland waterway
FOB Until the goods are on board Once the goods are on board at the port of loading Sea / inland waterway
CFR The destination port (no insurance) Once the goods are on board at the port of loading Sea / inland waterway
CIF The destination port, plus insurance at minimum cover Once the goods are on board at the port of loading Sea / inland waterway
CPT The agreed place of destination (no insurance) On delivery to the first carrier Any mode
CIP The place of destination, plus insurance at high cover (Incoterms 2020) On delivery to the first carrier Any mode
DAP The place of destination, not unloaded, not cleared for import At the destination, on the arriving vehicle not unloaded Any mode
DPU The place of destination, unloaded from the arriving vehicle At the destination, once the goods are unloaded Any mode
DDP The place of destination, cleared for import with duty paid At the destination, with the goods ready for unloading Any mode

A summary of the ICC's Incoterms 2020 rules, for quick reference. Each party's detailed obligations always rest on the sales contract as signed — CARIMEX advises on choosing the rule that suits a business's capabilities and appetite for risk.

Charges Beyond Ocean Freight

This is where quotes usually diverge — know them in advance to compare properly

Common surcharges in international ocean freight
Abbreviation Full Name What It Is
THC Terminal Handling Charge Handling and lifting charges at the terminal — levied at both the load and discharge ends
B/L fee Bill of Lading fee The fee for issuing the bill of lading on an export shipment
D/O fee Delivery Order fee The delivery order fee, charged at the import end before the container is collected
LSS Low Sulphur Surcharge A fuel surcharge for low-sulphur bunkers required by environmental rules
CIC Container Imbalance Charge Compensation for the carrier having to reposition empty containers between regions
PSS Peak Season Surcharge A peak season surcharge applied when demand for space spikes
AMS / AFR / ENS Advance Manifest / Advance Filing Rules / Entry Summary Declaration Fees for filing shipment details in advance with the customs authority at destination — the United States, Japan, Europe
CFS Container Freight Station Charges at the consolidation and deconsolidation warehouse — LCL cargo only
DEM / DET Demurrage / Detention Charges for keeping a container at the terminal, and for keeping the box outside the terminal, once the free days are used up

The list and level of surcharges are published by each carrier and change over time and by route. The table above explains what each charge is so a business can read a quote — it is not a CARIMEX tariff.

What CARIMEX Handles For You

From booking with the carrier through to delivery at the consignee's warehouse

Groupage LCL

Consolidating groupage cargo into shared containers for consignments that cannot fill a container, charged by CBM or weight.

  • Charged on the W/M basis, transparently
  • Consolidated at the CFS warehouse
  • Compared against the FCL option first
Request a Quote

Door-to-Door

End to end from the shipper's warehouse to the consignee's: trucking at both ends, customs clearance and the ocean leg all handled by one party.

  • Our own tractor fleet in Dong Nai
  • Customs at both ends through agents
  • One contract, one party accountable
Request a Quote

Incoterms Advice & Insurance

Choosing the delivery term that fits the business's capabilities, and arranging cargo insurance for the ocean leg.

  • Risk transfer points analysed
  • Total cost compared across the rules
  • Cargo insurance arranged
Request a Quote

Questions About Ocean Freight

The questions import-export businesses ask most often

How do FCL and LCL differ, and when should each be used?

FCL means hiring a whole container for one shipper, with freight as a lump sum per container. LCL means groupage cargo sharing a container with other shippers, charged on volume or weight, whichever is greater. The rule: once a consignment fills most of a twenty-foot container, FCL is usually cheaper per cubic metre and lower risk, because the box holds only your cargo and stays sealed warehouse to warehouse. For smaller consignments LCL costs less, but you must add CFS charges at both ends, allow longer for consolidation and deconsolidation, and accept a higher risk of damage from repeated handling.

Is LCL freight charged on volume or on weight?

On the W/M basis — whichever is greater, weight or volume, with 1 CBM treated as 1,000 kg. For example, a 3 CBM consignment weighing 1,500 kg is charged on 3 units (because 3 > 1.5); conversely a 2 CBM consignment weighing 4,000 kg is charged on 4 units. This conversion differs from air freight, where 1 CBM converts to 167 kg.

What surcharges apply on top of the ocean freight?

The usual ones are THC (terminal handling), the B/L fee (exports) and the D/O fee (imports), seal fees, advance manifest filing such as AMS for the United States, AFR for Japan and ENS for Europe, the LSS fuel surcharge, the CIC container imbalance charge, the PSS peak season surcharge, and for groupage cargo CFS as well. When comparing quotes between providers, compare the total cost including surcharges, not the ocean freight figure alone.

What is the difference between FOB and CIF?

Under FOB, the seller delivers on board at the port of loading and the buyer books the vessel and pays the ocean freight. Under CIF, the seller pays the ocean freight to the destination port and takes out insurance. But under both, risk passes to the buyer the moment the goods are on board at the port of loading. The point many businesses get wrong is assuming CIF makes the seller responsible to the destination port — it does not. CIF differs from FOB only in who pays the freight and who buys the insurance. Both rules are for sea and inland waterway transport only.

What is VGM, and who has to declare it?

VGM (Verified Gross Mass) is the verified total weight of the container — the cargo, the dunnage and the box itself. Under the SOLAS Convention, the shipper must give the carrier the VGM before the stated deadline or the container will not be loaded. Failing to submit the VGM, or submitting it late, is one of the most common reasons a container is rolled to a later vessel even though it reached the terminal before the cut-off.

Which southern ports does CARIMEX work through?

Regularly worked ports are Cat Lai (Ho Chi Minh City), the Cai Mep – Thi Vai cluster (Ba Ria – Vung Tau) for long-haul mother vessels, Phuoc An port and Dong Nai port, Tan Cang Hiep Phuoc and ICD Long Binh. Because CARIMEX already has a tractor fleet and container yard in Nhon Trach, it can handle the road legs at both ends rather than merely booking space with the carrier.

Want an Ocean Freight Quote With Surcharges Included?

Send the destination port, cargo type and volume — CARIMEX prices both the FCL and LCL options on one sheet, replying within the working day

Rates & Booking Contacts

Head Office L17-11, 17th Floor, Vincom Center, 72 Le Thanh Ton, Sai Gon Ward, HCMC
Nhon Trach Container Yard 25C Nguyen Ai Quoc, Nhon Trach, Dong Nai