ATI Service Sourcing

Choosing the Right Sea Freight Configuration

Importers must balance shipping costs, delivery times, and inventory levels when choosing between Full Container Load (FCL) and Less than Container Load (LCL) configurations. Selecting the right logistics setup has a direct impact on unit landing costs and cash flow utility.

Operational Differences & Cost Elements

FCL and LCL configurations follow different handling steps at departure and arrival ports:

• Full Container Load (FCL): Faster transit times as the container is loaded at the factory and delivered directly to the client's warehouse without deconsolidation.
• Less than Container Load (LCL): Cargo from multiple clients is consolidated at Container Freight Stations (CFS). While cost-effective for smaller volumes, it involves extra handling and potential destination fees.

Sourcing Action Plan for Cargo Routing

To optimize logistics expenses, we recommend adopting these cargo planning strategies:

1. Consolidate Orders: Combine shipments from multiple suppliers at a central Chinese warehouse to build full container loads.

2. Palletize Correctly: Pack LCL cargo on standard timber pallets to prevent handling damage at multi-client CFS stations.

3. Verify Local Fees: Review local port handling and deconsolidation charges beforehand to calculate accurate landing costs.

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