What’s included in a full container load (FCL) price? If so, you’re not alone. Many businesses need help correctly calculating FCL costs since shipping carriers and ports include different services. To ensure that your business makes intelligent transportation decisions, it’s crucial to understand the components of an FCL rate before making any logistics arrangements.
This article will tackle all the critical elements involved in an FCL rate – from export tariffs and fees at the origin to handling charges at the destination – and break down each cost step-by-step with examples to ensure all your bases are covered when selecting the right transportation solution.
What is FCL shipping?
If you’ve ever needed to ship large items, you may already be familiar with FCL shipping. FCL stands for Full Container Load, and it refers to a type of transportation used to move oversized shipments worldwide. It’s an efficient way to send large consignments overseas due to the flat costs of each shipment – irrespective of the size or weight.
Most businesses prefer FCL for international transportation as it requires little paperwork and offers excellent protection against potential damages caused by rough handling or adverse weather conditions. If you’re looking for an economical alternative to air freight solutions, FCL shipping should be on your list.
What’s included in FCL prices?
When considering FCL prices, it’s important to remember that you are paying for more than just the delivery of your cargo. Let’s take a closer look at the components involved in FCL shipping.
Export tariffs & fees: Depending on the country of origin, certain taxes and levies may be associated with FCL freight. When negotiating an FCL rate, enquire about any relevant export tariffs or fees applied upon shipment departure from the origin ports.
Insurance costs: It’s essential to consider insurance when arranging an FCL shipment, as it provides you with the necessary protection against any potential losses or damages to goods. Most carriers will require you to purchase a minimum level of coverage for your cargo, which will generally be included in the total FCL rate they provide.
Port handling charges: Port handling charges refer to the expense of loading a container onto a ship. This cost typically depends on the size of the shipping container but can also vary depending on other factors such as port infrastructure and labor costs.
Destination handling fees: In addition to loading and unloading at origin, additional fees may be involved in moving containers off ships and onto trucks or trains at their destination ports. These fees are usually referred to as destination handling costs and are often included in the overall FCL rate provided by your carrier.
Customs clearance: Customs clearance is essential to any international shipment as it ensures that all goods comply with applicable laws and regulations. In most cases, this process will require you to fill out a few forms and provide proof of origin to clear your goods. Depending on the country of destination, there may be additional fees associated with customs clearance that you need to consider when negotiating an FCL rate.
Miscellaneous expenses: In addition to the costs mentioned above, other miscellaneous expenses may be involved in arranging an FCL shipment. It could include storage fees, inspection charges, and documentation costs, so make sure to enquire about these with your carrier before finalizing your FCL rate.
Why FCL is the best logistics solution for specific scenarios
Firstly, you are provided with greater flexibility when it comes to selecting the size of your container and its packing configuration. Additionally, FCL offers much more security than other transportation methods, as all goods are stored within the confines of a single container throughout their journey.
Additionally, FCL shipping is significantly more economical for large shipments, allowing you to take advantage of bulk discounts and flat rates associated with such consignments. It makes it an ideal solution for transporting goods at competitive prices.
Lastly, FCL shipping is often the quickest way to move large consignments, as containers are loaded onto vessels and delivered directly to their destinations. It reduces the risk of lost or damaged goods and ensures your shipment arrives on time.
The benefits of FCL shipping
FCL shipping provides businesses with a cost-effective and efficient way to transport large consignments. It eliminates the need for multiple shipments as all goods are stored within the confines of a single container, allowing you to take advantage of bulk discounts and flat rates associated with such consignments. In addition, FCL offers greater flexibility when it comes to selecting the size of your container and its packing configuration.
Moreover, FCL shipping is significantly more secure than other transportation methods, as all goods are stored within the confines of a single container throughout their journey. It reduces the risk of lost or damaged goods and ensures your shipment arrives on time.
