FCL or LCL, container types and working with freight forwarders

This guide is for exporters booking sea freight for the first time or trying to cut freight costs. It explains full container load (FCL) versus less than container load (LCL), the common container types, factory stuffing versus CFS stuffing, what a freight quote should include, and how to choose a forwarder and customs broker.

FCL or LCL

With FCL you book a whole container, whether or not you fill it. With LCL a consolidator combines your cargo with other shippers' cargo in one container and charges you by volume (per cubic metre) or weight, whichever is greater.

	FCL	LCL
Best for	Larger regular shipments	Small or trial orders
Pricing	Per container	Per cubic metre or tonne, with minimum charge
Where stuffed	Your factory or a CFS/ICD	Consolidator's CFS
Handling and damage risk	Lower: sealed at origin, opened by buyer	Higher: handled at origin and destination CFS
Transit time	Shorter	Longer: waits for consolidation and deconsolidation
Transport document	Shipping line or forwarder bill of lading	Usually a forwarder's house bill of lading

As a rough rule, once LCL volume approaches 13 to 15 cubic metres, compare it with the price of a 20-foot container, because the fixed LCL charges at both ends often make FCL cheaper. Ask your forwarder for both quotes and compare the total landed cost on your Incoterm, not just the ocean freight.

Container types

Sizes vary slightly by carrier. The figures below are typical internal dimensions published by a major shipping line.

Type	Internal length x width x height	Volume	Typical use
20-foot standard (20' GP)	5.90 x 2.35 x 2.39 m	about 33 cubic metres	Heavy, dense cargo: rice, tiles, metal parts, chemicals
40-foot standard (40' GP)	12.03 x 2.35 x 2.39 m	about 67 cubic metres	Bulky goods: furniture, garments, handicrafts
40-foot high cube (40' HC)	12.03 x 2.35 x 2.70 m	about 76 cubic metres	Light, voluminous cargo that needs extra height
Reefer (20' or 40')	Slightly smaller inside than dry boxes	Varies	Temperature-controlled cargo: fruit, vegetables, seafood, pharma

The weight you can load is usually limited by road rules in India and at destination, not by the container's maximum payload. Ask your forwarder for the practical limit on your route. Under SOLAS, you must also declare a verified gross mass (VGM) for every packed container before it is loaded. For reefers, give the set temperature and ventilation on the booking and in writing, and pre-cool cargo before stuffing.

Factory stuffing or CFS stuffing

Factory stuffing means the empty container comes to your premises, you load it, and you seal it. Customs allows eligible exporters to self-seal containers at their premises with an RFID electronic seal, without an officer present, under the self-sealing procedure (CBIC Circulars 26/2017-Customs and 41/2017-Customs). You need permission from the jurisdictional customs authority and must buy RFID e-seals from a vendor that meets the customs specification. Factory stuffing reduces handling and usually speeds things up.

CFS or dock stuffing means you truck loose cargo to a container freight station or ICD, where it is examined if required and stuffed under customs supervision. All LCL cargo goes this way. It suits exporters without self-sealing permission or with small volumes.

What a freight quote should include

Ask for an itemised, all-in quote with a validity date. Typical heads are:

• Ocean freight, per container or per cubic metre, from load port to destination port.
• Surcharges such as a bunker or fuel adjustment, peak season, emergency or congestion surcharges. These change often, so ask which are fixed and which apply at the date of shipment.
• Origin terminal handling charges (THC) at the Indian port.
• Bill of lading or documentation fee, seal fee, VGM charges, and any telex release or seaway bill charges.
• CFS charges for LCL or dock-stuffed cargo.
• Inland haulage from your factory or ICD to the port, if the forwarder arranges it.
• Customs clearance and broker fees, if bundled.
• Destination charges (destination THC, delivery order, deconsolidation), which matter if you sell on DAP, DPU or DDP.
• Free time at destination before detention and demurrage start.
• GST where it applies to the services.

Which of these you pay depends on your Incoterm. Under FOB or FCA the buyer pays the ocean freight; under CFR, CIF, CPT or CIP you do.

Choosing a freight forwarder and customs broker

A freight forwarder books space with carriers, arranges haulage and often consolidates LCL cargo. A customs broker files your shipping bill. Many firms do both, but check that the customs work is done under a valid customs broker licence.

1. Check credentials. A forwarder that issues its own house bill of lading should be registered as a multimodal transport operator with the Directorate General of Shipping (now the Directorate General of Maritime Administration), which publishes a list of registered operators. Membership of a recognised association such as FFFAI or FIATA is a useful extra signal.
2. Ask for references from exporters in your product line and on your trade lane.
3. Compare at least two or three itemised quotes for the same Incoterm, route and dates.
4. Agree service terms in writing: cut-off times, who files VGM, who pays detention if documents are late, and how quickly the bill of lading is released.
5. Clarify the transport document. If you sell under a letter of credit, confirm the bill of lading will meet its terms, including the on-board notation.

Watch out for

• Cheap ocean freight with high local charges hidden at the end of the quote.
• Missing the documentation or VGM cut-off and being rolled to the next vessel.
• Overloading a container beyond road limits, which can lead to penalties, re-stuffing or refused gate-in.
• Poor packing for LCL, where cargo is handled several times.
• Releasing original bills of lading before you are paid, unless your payment terms allow it.

Related on Exportsmitra

• Incoterms 2020 for Indian exporters
• Export customs clearance: from shipping bill to let export order
• Export quote builder
• The core export documents

Sources

• Hapag-Lloyd: 20' standard container specifications
• Hapag-Lloyd: 40' standard container specifications
• Hapag-Lloyd: 40' high cube container specifications
• JNCH Customs Public Notice on RFID e-sealing of export containers
• Directorate General of Maritime Administration: multimodal transport operator registration

Last checked 1 October 2026. Rules change: confirm with your freight forwarder and customs broker before you act.