Export Shipping and Freight — FCL, LCL, Air Freight, and Cost Guide

Shipping is where many Indian MSME exporters lose money, delay orders, and damage buyer relationships — not because the logistics are impossibly complex, but because they do not understand the cost structure, the options available, or the timeline realities of international freight. A first-time exporter who quotes CIF pricing without understanding what that actually involves in freight costs will either eat into their margins or embarrass themselves with a revised quote.

This guide breaks down every shipping mode available to Indian exporters — sea freight (FCL and LCL), air freight, and multimodal transport. It covers the cost structures, the port procedures, the documents you need, and the mistakes that cost exporters time and money. If you have already secured your IEC and have an order in hand, this is what you need to know to move your goods from your factory to the buyer's warehouse.

Overview of Export Shipping Modes

About 90% of India's export trade by volume moves by sea. Air freight handles high-value, urgent, and perishable goods. Courier and parcel services handle samples and small shipments. Here is when to use each.

Mode	Best For	Typical Transit	Cost Level
Sea — FCL	Large shipments (15+ CBM)	15-45 days	Lowest per unit
Sea — LCL	Small shipments (1-14 CBM)	20-55 days	Moderate
Air freight	Urgent, perishable, high-value goods	1-5 days	Highest
Multimodal	Landlocked destinations, special routing	Varies	Moderate to high
Courier/Parcel	Samples, documents, small parcels (<30 kg)	3-7 days	Per kg, high for heavy items

The shipping mode you choose directly affects your pricing, delivery timeline, and the Incoterms you can offer. Read the Incoterms guide if you are not clear on how FOB, CIF, CFR, and other terms allocate shipping responsibilities between you and the buyer.

Sea Freight — FCL (Full Container Load)

FCL means you book an entire container for your shipment. No other shipper's cargo shares the container with yours. This is the standard mode for regular export shipments above 15 CBM.

Container Types and Sizes

Container Type	Internal Dimensions (L x W x H)	Volume (CBM)	Max Payload
20-ft Standard	5.9m x 2.35m x 2.39m	33 CBM	21-22 tonnes
40-ft Standard	12.03m x 2.35m x 2.39m	67 CBM	26-27 tonnes
40-ft High Cube (HC)	12.03m x 2.35m x 2.69m	76 CBM	26-27 tonnes
20-ft Reefer	5.44m x 2.29m x 2.27m	28 CBM	21 tonnes
40-ft Reefer	11.56m x 2.29m x 2.27m	60 CBM	26 tonnes

Specialized containers: Reefer containers are temperature-controlled (-25 to +25 degrees Celsius) for perishables and pharma. Open-top containers load from above for oversized machinery. Flat rack containers have no sides or roof for heavy equipment. Tank containers carry bulk liquids like chemicals and edible oils.

When to Use FCL

Use FCL when:

• Your shipment volume exceeds 15 CBM (the break-even point where FCL becomes cheaper than LCL per CBM)
• You need to control the handling of your goods (no consolidation/deconsolidation)
• Your goods are fragile or high-value
• You are shipping hazardous goods that cannot be consolidated with other cargo
• You want faster transit (no CFS delays)

A common beginner mistake is shipping 20 CBM via LCL because "we don't need a full container." At 20 CBM, LCL will cost significantly more than booking a 20-ft FCL container, and your goods will take longer to arrive.

FCL Cost Structure

The total cost of shipping an FCL container involves multiple charges. Here is the complete breakdown:

Charge	Description	Indicative Amount
Ocean freight	The main shipping line charge	$800-3,500 per 20-ft
THC (Terminal Handling Charge)	Port handling at origin	$100-200 per container
BL Fee (Bill of Lading)	Documentation fee from shipping line	$50-100
Seal charge	Container seal	$10-20
Documentation charges	Freight forwarder processing	$30-75
Customs clearance	CHA (Customs House Agent) fees	Rs 3,000-8,000
Transportation	Truck from factory/warehouse to port	Rs 8,000-35,000 (distance dependent)
Cargo insurance	If CIF terms	0.1-0.5% of cargo value

Ocean freight rates are volatile. They fluctuate based on fuel prices (bunker adjustment factor), seasonal demand (rates spike before Chinese New Year, Diwali, Christmas season), route-specific supply and demand, and geopolitical events. Always get current quotes — rates from three months ago are meaningless.

Transit Times from Major Indian Ports

Origin Port	Destination	Approximate Transit (FCL)
JNPT (Nhava Sheva)	Dubai/Jebel Ali	5-7 days
JNPT	Felixstowe (UK)	18-22 days
JNPT	Rotterdam (Netherlands)	18-24 days
JNPT	New York (USA)	25-30 days
Chennai	Singapore	6-8 days
Chennai	Melbourne (Australia)	18-22 days
Mundra	Hamburg (Germany)	20-25 days
Mundra	Jeddah (Saudi Arabia)	7-10 days
Kolkata/Haldia	Chittagong (Bangladesh)	5-7 days
Cochin	Mombasa (Kenya)	10-14 days

These are port-to-port transit times. Add 2-5 days for customs clearance at origin, and another 3-7 days for customs clearance and delivery at destination.

Booking FCL Shipments

You have two options:

Through a freight forwarder (recommended for MSMEs): A freight forwarder handles the entire logistics chain — booking with the shipping line, arranging trucking, coordinating customs clearance, and managing documentation. They charge a margin on the shipping line rate plus their service fees, but they save you enormous time and handle problems when they arise.

Direct with the shipping line: Major lines like Maersk, MSC, CMA CGM, Hapag-Lloyd, and ONE allow direct bookings through their websites. This can be cheaper but means you handle all coordination yourself. Suitable only if you have an experienced logistics team.

Sea Freight — LCL (Less than Container Load)

LCL is for shipments that do not fill an entire container. Your cargo is consolidated with other shippers' cargo in a shared container.

How LCL Works

1. You deliver your cargo to a CFS (Container Freight Station) near the port
2. The CFS consolidator groups your cargo with other shippers' cargo heading to the same destination
3. The consolidated container ships to the destination port
4. At the destination, the container goes to a CFS for deconsolidation
5. The buyer or their agent picks up their cargo from the CFS

When to Use LCL

• Your shipment is below 15 CBM
• You are sending sample shipments or trial orders
• You are a new exporter testing a market with small quantities
• Your buyer has ordered a small volume

LCL Cost Structure

LCL is charged per CBM (cubic metre) or per tonne, whichever is higher. This is called the "revenue tonne" or "freight tonne" — the shipping line charges based on the greater of volume or weight.

Charge	Description	Indicative Amount
Ocean freight	Per CBM or per tonne (whichever is higher)	$40-100 per CBM
CFS charges (origin)	Handling at consolidation warehouse	Rs 1,500-3,000 per CBM
CFS charges (destination)	Handling at deconsolidation warehouse	Varies by country
BL fee	Bill of Lading documentation	$50-100
Documentation	Freight forwarder fees	$30-75
Customs clearance	CHA fees	Rs 3,000-8,000

LCL Realities You Must Know

Longer transit times. Add 5-10 days to FCL transit times for CFS consolidation at origin and deconsolidation at destination. A 20-day FCL route may take 30-35 days via LCL.

Higher damage risk. More handling means more chances for damage. Use strong packaging and palletize your goods.

CFS cut-off times. Miss the CFS cut-off date and your cargo waits for the next consolidation, potentially a week later.

Minimum charges. Most LCL operators charge a minimum of 1 CBM even if your shipment is smaller. For shipments under 100-200 kg, compare LCL cost with air freight — air may be cheaper and faster.

Air Freight

Air freight is expensive compared to sea freight, but it is essential for certain products and situations.

When to Use Air Freight

• Perishable goods — fresh fruits, vegetables, flowers, seafood, dairy products that cannot survive 20-30 days at sea
• Urgent orders — buyer needs the goods within days, not weeks
• High-value, low-volume goods — jewellery, electronics, pharmaceuticals, precision instruments where the freight cost is a small percentage of the product value
• Samples — sending product samples to potential buyers before a bulk order
• Just-in-time supply chains — automotive parts, electronic components where delays halt production lines

Air Freight Cost Structure

Air freight is charged per kilogram, with a minimum chargeable weight. The critical concept is volumetric weight vs actual weight — you pay based on whichever is higher.

Volumetric weight formula: Length (cm) x Width (cm) x Height (cm) / 6,000 = Volumetric weight in kg

If your package measures 60 x 40 x 40 cm and weighs 15 kg:

• Volumetric weight: 60 x 40 x 40 / 6,000 = 16 kg
• Actual weight: 15 kg
• Chargeable weight: 16 kg (the higher of the two)

This means lightweight but bulky goods (textiles, handicrafts, plastic products) are expensive to air freight because you are paying for space, not weight.

Charge	Description	Indicative Amount
Air freight	Per kg (chargeable weight)	$2-8 per kg
Fuel surcharge	Variable, based on jet fuel prices	Included in rate or 10-30% of base rate
Security surcharge	Post-screening charges	$0.10-0.30 per kg
AWB (Airway Bill) fee	Documentation	$30-50
Terminal handling	Airport cargo terminal	Rs 2-5 per kg
Customs clearance	CHA fees	Rs 3,000-8,000

Air Freight Transit Times

Air freight typically delivers door-to-door in 3-7 days: flight time of 3-15 hours, plus 1 day for customs clearance at origin, 1-2 days for customs clearance at destination, and 1-2 days for airport handling and delivery.

Major Air Cargo Hubs in India

India's major air cargo airports are Delhi (DEL) for Europe and USA East Coast, Mumbai (BOM) for Middle East and Africa, Chennai (MAA) for Southeast and East Asia, Bengaluru (BLR) for Southeast Asia and Europe, Hyderabad (HYD) for the Middle East, and Cochin (COK) as a strong hub for perishable exports to the Middle East.

Air Freight Documentation

The key difference from sea freight is the Airway Bill (AWB) instead of a Bill of Lading. The AWB is a non-negotiable document — unlike a BL, it cannot be used as a document of title. This means air freight is typically used with advance payment or open account payment terms, not with Letters of Credit that require a negotiable BL.

For complete documentation requirements, see the export documentation guide.

Multimodal Transport

Multimodal transport combines two or more modes under a single contract. The most relevant combination for Indian exporters is Rail + Sea — goods move by rail from an Inland Container Depot (ICD) to the port, then by sea. ICDs at Tughlakabad (Delhi), Whitefield (Bangalore), and Irugur (Coimbatore) allow you to clear customs and stuff containers inland, bypassing port congestion. Other combinations include road + sea (the standard for most exports), road + air, and sea + road for landlocked destinations like Nepal or African interior countries.

How Incoterms Affect Your Shipping Decisions

The Incoterm you agree with your buyer determines who arranges and pays for shipping. This is not a minor detail — it fundamentally changes your responsibilities and risks.

Incoterm	Who Arranges Shipping	Who Pays Freight	Risk Transfer Point
EXW (Ex Works)	Buyer	Buyer	At your factory
FOB (Free on Board)	Seller to port, buyer for ocean	Buyer pays ocean freight	When goods loaded on vessel
CFR (Cost and Freight)	Seller	Seller pays ocean freight	When goods loaded on vessel
CIF (Cost, Insurance, Freight)	Seller	Seller pays freight + insurance	When goods loaded on vessel
DAP (Delivered at Place)	Seller	Seller pays all freight	At buyer's location

Most Indian MSME exporters start with FOB terms — you handle everything up to loading the goods on the vessel at the Indian port, and the buyer handles ocean freight and onward logistics. This is the simplest arrangement because you only deal with domestic logistics and the port.

If you quote CIF, you are responsible for arranging and paying for ocean freight and insurance. You need to factor these costs accurately into your pricing. Get freight quotes before committing to CIF pricing — many exporters quote CIF without knowing the actual freight cost and then discover their margins have evaporated.

For a detailed breakdown of all Incoterms, read the Incoterms guide.

Choosing a Freight Forwarder

Unless you are shipping frequently enough to justify an in-house logistics team, you need a good freight forwarder. They are your logistics partner, and a bad one will cost you far more than the savings from choosing the cheapest quote.

What a Freight Forwarder Does

A freight forwarder handles the entire logistics chain: booking vessel/aircraft space, arranging trucking, coordinating customs clearance through their CHA network, managing documentation, tracking shipments, handling CFS operations for LCL, and advising on optimal routes and modes.

How to Evaluate a Freight Forwarder

Criteria	What to Check
IATA membership	Authorised for air freight bookings
FIATA membership	International federation of freight forwarders
Experience with your product type	Hazardous goods, perishables, and oversized cargo require specialised expertise
Network at destination	A forwarder with agents at your buyer's port provides smoother delivery
Technology	Online tracking, digital documentation, automated updates
References	Ask for references from other exporters in your industry
Insurance	Freight forwarder liability insurance (in case they make errors)

Getting Quotes

Always get at least three quotes. But do not simply pick the cheapest one. Compare the total landed cost — the all-inclusive cost from your factory to the buyer's warehouse. A forwarder who quotes cheap ocean freight but charges high CFS fees, documentation charges, and hidden surcharges will end up costing more.

Ask each forwarder for a breakdown of all charges. If a quote seems suspiciously low, ask what is excluded. Common hidden charges include fuel surcharges, peak season surcharges, detention/demurrage fees, and CFS handling.

Red Flags

Watch out for forwarders who give "all-inclusive" quotes with no breakdown, refuse to provide references, have no physical office, promise unrealistically short transit times, or demand full payment upfront before any service.

Port Procedures in India

Understanding your nearest major port and its procedures helps you plan timelines and costs.

Major Indian Export Ports

The main ports for container exports are JNPT (Navi Mumbai), Mundra (Gujarat), Chennai, Kolkata/Haldia, Vizag, Cochin, Pipavav, and Krishnapatnam. Choose the port closest to your manufacturing location to minimise inland transport costs. JNPT and Mundra handle the highest container volumes and have the most frequent vessel sailings.

Standard FCL Export Procedure at Port

1. Customs clearance — your CHA files the Shipping Bill on ICEGATE, Customs examines documents and may inspect goods
2. Container collection — empty container collected from the shipping line's container yard
3. Stuffing — goods loaded into the container at your factory/warehouse or at a CFS
4. Transportation — container trucked to the port
5. Gate-in — container enters the port terminal, scanned and verified
6. Customs examination — if selected for physical examination (random or risk-based)
7. Let Export Order (LEO) — customs grants permission to export
8. Loading — container loaded onto the vessel

This entire process typically takes 3-5 days from Shipping Bill filing to vessel loading. Plan for 7 days to be safe, especially during peak seasons.

Key Shipping Documents

Every export shipment requires specific documentation. The two critical shipping documents are:

• Bill of Lading (BL) — for sea freight, issued by the shipping line. This is a document of title, receipt of goods, and evidence of the contract of carriage.
• Airway Bill (AWB) — for air freight, issued by the airline. Non-negotiable, serves as receipt and contract of carriage.

Other essential documents include the commercial invoice, packing list, shipping bill (filed on ICEGATE), certificate of origin, and any product-specific certificates (phytosanitary, health, FSSAI, etc.).

For the complete list of export documents and how to prepare each one, see the export documentation guide.

Common Shipping Mistakes That Cost Exporters Money

Not calculating volumetric weight for air freight. An exporter ships 500 kg of textiles by air, expecting to pay for 500 kg. The volumetric weight comes out to 1,200 kg because textiles are bulky. The air freight bill is 2.4 times what they expected. Always calculate both weights before quoting.

Underinsuring cargo. Skipping insurance on FOB shipments or buying minimum coverage is a false economy. Insure for at least 110% of CIF value. Read the export insurance and ECGC guide for details.

Late booking during peak season. During peak seasons (pre-Christmas August to October, pre-Chinese New Year), container availability drops and rates spike. Book 2-3 weeks in advance.

Not factoring CFS time for LCL. Promising delivery in 25 days based on sea transit, forgetting that LCL adds 5-10 days for CFS consolidation and deconsolidation.

Wrong container type. Temperature-sensitive goods in a standard container instead of a reefer. Heavy goods exceeding the weight limit. Tall cargo in a standard container when a high cube was needed. Confirm the right type before booking.

Ignoring detention and demurrage charges. These daily charges (Rs 2,000-5,000 per day) accumulate when containers or cargo sit beyond the free period at destination. Ensure your buyer is ready to clear cargo promptly.

Not getting a freight quote before committing to CIF pricing. Always get a firm freight quote from your forwarder before quoting CIF. Many exporters quote based on rough estimates and then discover their margins have evaporated.

Key Takeaways

• Sea freight (FCL) is cheapest for shipments over 15 CBM — below that, use LCL
• LCL adds 5-10 days to transit time due to CFS consolidation and deconsolidation
• Air freight charges on volumetric or actual weight, whichever is higher — always calculate both
• The Incoterm you agree with your buyer determines who arranges and pays for shipping — understand this before quoting prices
• Always get at least 3 freight quotes and compare total landed cost, not just the freight rate
• Book early during peak seasons (August-October, pre-Chinese New Year)
• Use a reliable freight forwarder — the cheapest option is rarely the best option
• Factor in all charges: ocean freight, THC, BL fees, CFS charges, trucking, customs clearance, and insurance

What to Do Next

1. Identify your nearest major port and understand its procedures and costs
2. Get freight quotes from 3 forwarders for your specific product and destination using both FCL and LCL options
3. Calculate your landed cost under different Incoterms (FOB vs CIF) to determine which to offer buyers
4. Use the Duty Calculator to understand what duties your buyer will pay at their end — this helps in pricing negotiations
5. Research destination markets using the Market Finder and country export guides to identify where to focus your shipping
6. Prepare your export documents well in advance — see the documentation guide for the complete checklist
7. Ensure you have adequate insurance — read the export insurance and ECGC guide before your first shipment

Shipping is a cost centre, not a profit centre. The goal is to move your goods reliably, safely, and at a predictable cost. A good freight forwarder and a solid understanding of your options will save you far more than any attempt to cut corners on logistics.