Sizes of Containes | Stuffing Methods | Types of PU Locations | Reading FCL Rate | Avoiding Mistakes | S.O.C.

FCL – FULL CONTAINER LOAD

FCL – an abbreviation for “Full Container Load”. This term is commonly used to describe a seafreight service that is designed for shipments of cargo where shipper has exclusive use of sea multimodal container. As a rule containers are loaded and sealed by shipper at the shipper's facility. Then it transported by ocean, rail and/or truck directly to the point of final destination.

Notice: If you have a cargo sufficient to fill a 20 foot sea container, we still recommend you to compare FCL to LCL option. In certain circumstances you may find that using LCL service can be more convenient and cost-effective for you. As an example, when you self-deliver boxed cargo to a ship-terminal, you eliminate container pre-carriage and waiting charges. Also you are not obligated on the container return to a carrier's destination container yard.  

However, for sizable shipments that fit into 40 foot container, FCL can be the only option in order to make your shipment efficient. For sure, shipping multimodal sea containers should be safer and more cost effective than using other seafreight service such Ro-Ro or Break-Bulk.

MULTIMODAL CONTAINERS SPECIFICATION

Besides commonly used 20’STD, 40’STD and 40’HC containers. there are numerous of other types of sea containers including as 45’ High Cube, Open Tops and Flat Racks sizes of 20’ and 40’ etc. However, as a rule these types of container are subject to equipment availability. In certain circumstances they can be limited . Then, if you ship a regular cargo we suggest planning your shipment using one of these three sea container types below.  

THREE METHODS FOR CONTAINER STUFFING:

1. A 'LIVE LOAD' - means that the trucker will bring the container to your location and wait while you load the container. Free loading time may vary from one to two hours. If you exceed the free time limit, then you will pay approximately $75 per hour for each additional hour of loading time.
    
2. A 'DROP AND PICK' - means that the driver leaves the container at your location for several days. The 'drop and pick' generally costs twice as much as a 'live load', but has the advantage that shipper can take a time in loading and securing commodity in the container.
    
   If you load a container near a seaport or container yard, the cost for 'drop and pick' is often not much more than a 'live load'; that cost might be worth it to be able to take your time loading. However, if you locate a good distance from the port it is possible that a 'live load' will be the only option available.  
    
3. ‘IN A WAREHOUSE QUALITY LOADING’ - means that shipper self-delivers loose cargo to a warehouse of company, which specialize in quality loading of cargo into containers. Once goods are received, they will load and secure your cargo in the container and deliver it to the carrier’s shipping terminal – Container Yard (CY). 
    
   In a Warehouse Quality Loading method is not always available. This service can be costly. However, a professional loading company should guarantee safety of cargo in the container. If the company located near a seaport of departure and has a permit to carrier’s CY, then with this method you may save on inland pre-carriage as well.     

TYPES OF PICKUP LOCATIONS:

1. Commercial Facility – Pickup location provides a loading dock with a ramp and forklift. Shipper is responsible for loading and securing cargo in containers.
    
   When your container(s) leaves your facility make sure that you have on hand a copy of dock receipt provided by trucker, signed and dated by the trucker, with the container and seal number in it.
    
2. Residential location – SUBJECT TO AVAILABILITY. No ramp is available. Shipper loads the container by hand. Shipper is responsible for loading and securing cargo in containers. 
    
   You may consider hiring a professional stuffing (moving) company in purpose to load your container. If you are hiring someone then remember that time slot for a container delivery confirmed by trucking company cannot be 100% guaranteed. Discuss that with your loaders in advance.
    
3. Warehouse – SUBJECT TO AVAILABILITY. Shipper delivers pre-packed cargo to the nearest available receiving warehouse/terminal. Once your goods are received, container will be delivered to the warehouse. Rate will include all applicable charges related to cargo receiving at the warehouse, storage, loading and securing cargo in the container.
    
4. Port / OCEAN FREIGHT ONLY – NO CONTAINER PRE–CARRIAGE OR ORIGIN PORT CHARGES WILL BE INCLUDED IN THE RATE OFFERED. This option is available for shipments of ´shipper owned containers´ (SOC). For containers rented by the shipper, the shipper is responsible for the return of the container at the destination. The shipper is also entirely responsible for obtaining permits for access to the piers or rail-yards of the steamship line. In the USA this generally requires a Uniform Intermodal Interchange and Facilities Access Agreement, or UIIA.  
      

HELPFUL HINTS. READING FCL QUOTATIONS.

Most of the time FCL rates offered by a freight forwarder will be ‘DOOR-PORT FOB vessel’ or to be more specific - ‘EXW (Ex Works) named place of cargo pickup TO named destination seaport or container/rail yard in a landlocked final destination’s city, FOB (Free On Board) ship’s rail at named port of origin’.

That means that quotations offered contain charges related to: container(s) delivery to your location for the load and returning this loaded container back to the ocean carrier’s container yard; origin THC – Terminal Handling Charges and fees related to origin’s customs formalities and document turnover; and cost for sailing of the container(s) to the final destination named in the rate confirmation and in carrier’s bill of lading thereafter.

However, these quotations DO NOT include any charges at destination.

Upon arrival your container to a port of entry of destination country, consignee (recipient) will be responsible for all charges related to the cargo recovery at the destination. I.e. in order to get this cargo released he/she must pay destination THC, Customs related charges, cargo release and carrier’s destination agent fees, etc at the destination.

A sample of FCL quotation (export from the USA)

AVOIDING COMMON MISTAKES:

A. Storage/demurrage at a destination

In several days before your cargo will arrive to the destination port of entry your consignee (recipient) should receive a notification. As a rule it will be an arrival notice faxed or e-mailed to the consignee. Otherwise it can be a phone call or mail. Make sure that contact information of consignee initially provided in your booking request is correct and valid.  

Act promptly. Your free storage time at a destination container yard is limited. Depending on destination it varies between 7 to 14 days. Thereafter storage/demurrage may increase total cost for your shipment dramatically.

Laws allow your consignee work on the cargo recovery directly with destination county’s customs and other parties related to your shipment.

However, if the consignee is not familiar with import procedures, we recommend him immediately request your destination agent to complete the cargo release on your behalf or forward the notice of arrival along with other documents required by destination authorities to a freight forwarder or destination customs broker. They will charge a reasonable fee for its service. However, they should obtain customs and warehouse releases with no (or minimum) storage/demurrage charges on your shipment. 

B. S.O.C. - Shipper Owned Containers

When you book FCL shipment and request container delivery for the load you “rent” the container from the carrier. Container’s “Rent” charges are included in ocean freight rate. However, shipper should always remember that after container is released at the destination and left carrier’s Container Yard – CY to be unloaded at the consignee facility, it must be returned to the carrier’s CY within certain time limit. Otherwise container detention charges may apply.

If your destination facility is far away from carrier’s CY then you should pay attention to possible charges on container detention.

For example, upon your cargo release at the destination seaport (CY) your container must continue to travel by rail thousands mile away from the CY in bond or not. Then empty container must be returned back to the CY.

In this situation, in order to avoid container detention charges and eliminate expenses related to the container return, the only option is using S.O.C. - Shipper Owned Containers, i.e. a "One Way" Container.     

S.O.C. means that you buy a container at origin. Then the container is your property and you are not obligated to its return. After it is emptied you may sell it, use for storage, destroy it etc. 
   
There are a lot of dealers in every country around the world that sells new and used containers. Consider S.O.C. in your shipment.

However, before purchasing a container you should consider:

Why do you need S.O.C? Consider a reload cargo from your container to a trailer or another container at the destination.

If you still need a S.O.C then think about:

• Does rate offered effective for S.O.C? 
• Does carrier require a container condition survey before the container is loaded?
• Consider a crane usage for lifting your container on/from chassis or flatbed. Most container delivery trailers are designed to slide containers off to the ground & cannot handle the weight of a loaded container.  
• Do not overload container. Consider road weight and ports cranes limitations.
• Do you have insurance of the type that will cover you in the event that container failure damages the cargo of others or the vessel? Most likely you insurance will cover your cargo, but not the damage you do to others. 
• Notice: S.O.C may send a negative message to Customs. Customs know that "Shipper Owned Containers" may mean a one way trip, it can often mean junk or even hazardous cargo and often purchased at the end of their service life.

Find more about S.O.C. in this link

C. Shipper’s responsibilities on commodity and shipping documents submitted to a shipment

In respect of dealing with a freight forwarder, shipper should clear understand that he/she is responsible for description and legality of commodity and sufficiency of documentation submitted to an international shipment.

Carrier’s bill of lading, final document that acts as title to the shipped goods, as a rule states ‘SHIPPER'S LOAD AND COUNT’ and ‘SAID BY SHIPPER TO CONTAIN’. That means that the carrier (and a freight forwarder who represents this carrier) is not responsible for information provided by shipper on his commodity. 

A freight forwarder should guide shipper in complexity of international shipment procedures. However, it is shipper’s responsibility to provide all necessary documents related to his shipment that will be required by origin and destination country officials.

Below is the list of common used documents required to be submitted to an international shipment by sea:

MANDATORY DOCUMENTS:

A. Bill of Lading – Carriers transport document. Shows cargo routing, consigner, consignee, cargo description, etc.

B.1. For commercial shipments - Commercial Invoice. Complete description of commodity being shipped.

B.2. For shipping household goods and personal belongings – Valued Packing List. An inventory list with value assigned to each item being shipped.

Notice: some courtiers require proforma commercial invoices for personal shipments as well. However, having a complete Valued Packing List submitted at origin, upon destination customs request, make it easier to transfer your Valued Packing List in form of proforma commercial invoice.   

In respect of U.S. Customs, all Commercial Invoices (and Valued Packing Lists) must be in English and show:

Value of cargo in US Dollars (exchange rate = date of export);
Shippers full name and address (M.I.D. – manufacturer’s identification);
Consignee full name and address;
Detailed description of cargo/freight;
Quantity of cargo shipped;
Weight of cargo shipped;
Cargo’s Country of Origin
ADDITIONAL DOCUMENTS DEPENDING ON COMMODITY AND COUNTRY OF ORIGIN:

D. Packing List – Breakdown description: pieces, weights and packing materials. (Examples - Wood Pallets, Skids, Crates, Boxes, Dunnage, Straw Packing, etc.)

E. Fumigation Certificate– Certification that cargo and packing materials were fumigated after cargo had been containerized and is free of Infestation.

F. Special Documents – Dependent on commodity and country of origin.

Visa
Quota
Visa/Quota
Certificate of Origin
North American Free Trade Agreement Certificate of Origin (N.A.F.T.A.)
Packing Declaration
Dangerous Goods Declaration – hazardous materials
Fish and Wildlife Declaration
Consular Legalized documents
F.D.A.
U.S.D.A.
Anti-Dumping