A quick guide to LCL vs FCL shipping for wine importers

Whether you choose a full-container-load (FCL) or less-than-container-load (LCL) service depends on the quantity of wine and spirits you want to ship. FCL is the right option when you’re transporting a full 20-foot container shipment of 10 VMF pallets/ 11 EURO pallets for example.

Although, when you don't have enough pallets to fill a container yourself you can choose LCL, otherwise you're paying for space in a container you are not using.

Choosing the right shipping method is of crucial importance and working out which is the best option will depend on your particular needs each time.

Here’s an in-depth look at LCL vs FCL, how they work, and how to decide which is the better choice for your shipment.

What is FCL shipping?

If you move your wine, beer or spirits using full-container-load (FCL) shipping, you will get an entire container dedicated to transporting only your beverages. Typically, an FCL container will be loaded at your supplier’s warehouse and delivered to your chosen location by truck, train, ship, plane, or a multimodal transport combination. 

Our FCL service follows this process:

• Collection: an empty dry, insulated or refrigerated container is delivered to the exporter for loading.
• Transportation to the port: the truck transports the container to the port.
• Customs: customs export documentation, duties and taxes are approved.
• Loading: container loaded onto ship.
• Journey (main leg): the ship leaves the port to the final destination
• Arrival: the container arrives at the destination port and is cleared by customs.
• Delivery: container delivered to the importer by road or rail.

What are the benefits of FCL shipping?

If the number of pallets you intend to transport can fill a shipping container to near capacity, FCL will be the cost effective method of transport per pallet. FCL is a good option when you want to ship large volumes of wines, beers or spirits.

If you’re comparing the benefits of FCL vs LCL  they include: 

• A faster journey
• Reduced warehouse handling time
• Reduced risk of damage
• Faster clearance procedures at customs
• Cross docking opportunities 
• Choice of container type

However, FCL is not the best option for small quantities.

What is LCL shipping?

Unlike FCL shipping, LCL allows multiple shippers to share the capacity and cost of a container. Shipments are gathered from different suppliers and consolidated into a single shipment that is loaded into one container. 

This means you only need to pay for the exact amount of pallets you want to ship without having to fill an entire container yourself. You can send anything from a single case to several pallets. 

Using Hillebrand Gori LCL services means your pallets will only be consolidated with other wine, beer or spirits shipments to eliminate the risk of cross contamination.

LCL shipping services are offered by different types of companies and the service they offer varies.  Some companies that offer LCL shipping services are known as consolidators or co-loaders. These transport providers don’t have a direct relationship with the freight payer and co-load pallets for all types of goods.

What is groupage?

Groupage is the term often used when referring to LCL services, although there is actually a distinct difference between the two. 

Groupage services are provided by some freight forwarders like Hillebrand Gori who have specialist experience in safely transporting alcohol like wine, spirits or beer which requires care during transport.

Here at Hillebrand Gori, we understand that wine is a sensitive product and can be easily tainted by odors from other goods. So, our groupage service guarantees that your wine, beer or spirits will only be loaded into containers with other beverages, ensuring it is safe from contamination.

Our LCL groupage service follows this process:

• Collection: Beverage pallets collected by truck and taken to temperature-controlled warehouse. 
• Consolidation: Beverage pallets from several shippers consolidated into one container.
• Transport to port: Truck transports loaded container to port.
• Customs clearance: export documentation, duties and taxes approved.
• Loading: container loaded onto ship.
• Journey (main leg): vessel departs port of origin.
• Arrival: the container arrives at the port of destination and is cleared by customs.
• Transport to warehouse: truck takes container to temperature controlled warehouse.
• Deconsolidation (unloading): container unloaded and pallets from each shipper are separated.
• Delivery: wine delivered to the consignee by road or rail.

What are the benefits of LCL shipping?

Depending on your requirements, LCL shipping can offer certain advantages for transporting beverages.

When comparing LCL vs FCL you can:

• Better manage your cash flow: Ordering lower volumes at a time means you need to reserve less space in the warehouse and avoid paying to store idle stock. Smaller shipments also mean lower taxes and duties must be paid at a time.
• Cut freight costs: By sharing the cost of the container with other shippers, you can lower your outlay per order.
• Quickly react to changing market tastes and offer a more diverse range of wine: LCL lets you quickly update your product line to give consumers what they want sooner. Frequent scheduled sailings mean you don’t have to keep a vast inventory in stock but replenish as needed.

LCL vs FCL: Is LCL shipping cheaper?

The total cost of shipping depends on the amount of wine or spirits you want to ship.

In general, if you are moving small shipments, such as a few pallets, LCL shipping involves a smaller outlay compared to FCL. 

However, shipping loads large enough to fill a container (10 standard pallets) is more cost-effective as the total freight cost per pallet is less than with LCL.

What you need to know about LCL vs FCL shipping documentation

Anytime you transport wine, beer, or spirits, whether a full container or less, you need your paperwork to be correctly compiled, in order to avoid shipping delays.

Documents you may need to present to clear your wine at customs include the following:

• Bill of lading
• Sea or Air Waybill
• Certificate of origin (if needed)
• Organic certificate (if needed)
• Commercial invoice
• Export/import customs declaration
• Packing list (PL)
• Arrival Notice
• Letter of Credit
• Export/ Import License

Making the right choice

When choosing between LCL vs FCL shipping for your wine importation, it is crucial to consider these factors:

• The quantity of wine or spirits to be transported.
• Budget constraints.
• Transit times. 
• Required delivery date.

While LCL shipping is ideal for smaller quantities of wine and offers cost-effective solutions, FCL shipping is more suitable for larger volumes and time-sensitive shipments.

Beyond LCL vs FCL

While costs and lead times are always important considerations when moving your beverages , your overarching priority is to make sure your wine is protected so that it arrives safely and with its quality preserved.

Wine importing risks to consider

The quality of the wine experienced by the consumer, depends significantly upon the conditions under which it was transported. We will look at how to best protect your wine by choosing the right container in the next section. First, let’s look at some of the risk factors to consider when moving your wine.

Thermal shock - extreme temperature fluctuations

The temperature your wine and beer experiences during storage and shipping is crucial. Your shipment’s journey may involve crossing continents or even seasons if it moves from the Old World to the New or vice versa. Wine can be spoiled if it is subjected to temperatures over 20°C (70°F). The extreme change in temperature is referred to as thermal shock, which may lead to deterioration in the wine. Wine damaged by high temperatures may taste stale, flat, and unpleasantly sour. Sometimes people say it tastes like vinegar. 

At the other extreme, excessive exposure to cold can also ruin your wine.

If temperatures drop to a range between +5°C and 10°C (41°F and 50°F) wines can lose acidity and freshness. It can experience tartaric precipitation and develop a crust of colored, crystalline sediment. At even lower temperatures, wine may expand and bottles can break or corks might be forced out of the bottle, causing oxidation or leaks, and at around -7ºC to -10ºC (19.4°F to 14 °F) wine starts to freeze. 

Humidity and container rain

Another transport risk that can be mitigated by the selection of the right container is humidity. 

Wine is best stored at a relative humidity level of around 60-85%.

Too high humidity may lead to the growth of mold on the cork and the outside of the wine bottle and may contaminate the wine itself. If humidity is too low the cork may dry out, contract, or crumble putting the seal at risk and paving the way for oxidation and leaks.

Container rain is a form of condensation that happens if the humidity level and temperature differences between the inside and outside of a shipping container are too high. This moisture can drip down onto your wine, ruin the labels and result in spoilage.

Contamination

Each wine has its own distinctive taste and aroma which can easily be tainted by odors from other goods. If you are choosing a dry container, you’ll not be aware of what was transported in it previously and have no barrier to protect your wines. 

To prevent your wine from being damaged before it even reaches you, it pays to be aware of these risks and select the most suitable containers for transport and storage.

How to protect your wine

Whether you opt for LCL or FCL, there are various types of containers available to meet your needs and keep the quality of your wine, spirits and beer intact. From dry containers to insulated containers to refrigerated containers, it’s important to understand the pros and cons of each type so you can make an informed decision on which container is best for your wine shipment.

LCL vs FCL: Types of containers

Dry containers

Standard dry containers come in two sizes, 20ft, and 40ft, and are readily available worldwide. These containers are only suitable if your beverages won’t be exposed to temperature or humidity shifts. For shipments in bulk, a flexitank can be placed in the container.

Insulated containers

If you want to protect your wine and beer against thermal shocks, humidity, container rain, cross-contamination, and odors, you should add our patented insulation liner to a dry container. The in-house designed liners are the only ones with a breathable membrane that allows humidity to escape, stabilizing the humidity level around 70%. This food-grade quality liner also prevents contamination and minimizes temperature extremes that can spoil wine and beer qualities.

Reflecting 94% of heat, almost double that of other liners, the temperature inside the liner will not exceed a maximum of 11ºC/20ºF (from packing temperature). 

Refrigerated containers (AKA Reefers)

Reefers are available for wine that needs to be kept at a precise temperature. These refrigerated containers are usually digitally controlled.

However, refrigerated containers can be harder to come by, are more expensive, and offer less storage space than other options, such as dry or insulated containers. They are also less environmentally friendly due to their constant energy requirements. For a greener solution, reefers can be ordered with the refrigeration unit disabled. The insulating walls of these Non-Operating Reefers still keep internal temperatures more stable than would be the case with dry containers.

Always consider insurance

Transporting wine, beer and spirits always carries some element of risk whichever option you choose. Containers can’t safeguard your wine from every threat. Fires, theft, and collisions can sometimes occur and losing your shipment could be harmful for your business. So it’s always wise to explore insurance options when planning how to move your wine.

LCL vs FCL shipments: Why Hillebrand Gori is a great choice for both

When shipping wine via LCL or FCL services, it’s important to use a freight forwarder who understands beverage transportation. Here at Hillebrand Gori, we can ensure your product is handled safely and carefully.

With the right shipping solution, you can get your wine, beer or spirits where it needs to go cost-effectively and in the best possible condition. Over and above this, our seasoned professionals understand that wine and beer is extremely sensitive to temperature and humidity, which is why the majority of our services are insulated or refrigerated. Contact us to discuss your shipping needs.

Published 11th December 2023