The entire transit time is also an advantage for the FCL agreement over LCL, as the entire container is transported directly to the final destination. Direct deliveries reduce the extra time required to de-save an LCL delivery before the final delivery step to the buyer`s final sites is completed. FCL can save an average of 4 to 7 days compared to an LCL show. If you ship via FCL and use the Incoterm FOB agreement, the following calculations are necessary to understand the cost of shipping: the fall of communism in Poland in 1989 initiated the country`s transition from a planned enterprise to a market economy. [3] High debt hampered Poland`s transition with annual loans and interest payments of $10.3 billion, or one-sixth of the country`s gross domestic product (GDP). [4] Poland`s first IMF agreement was approved in February 1990 for a one-year term of SDR 545 million. [6] Although the country relied heavily on IMF financing, particular attention was paid to the conditionality of the loan, a criterion for economic reform. [4] Gaps from the 1990 political reform occurred after the signing of the second IMF agreement in April 1991. [7] Over the next two years (1991-1992), the budget deficit increased from 3% to 7% of GDP and an inflation rate of 44%. [9] As a result, the IMF suspended Poland from the EFF in June 1991, two months after the initial authorization was granted.
Negotiations in 1991 and 1992 on lifting the suspension were unsuccessful. [7] Poland`s second agreement ended in March 1993, with the member nation benefiting from SDR 76.5 million. [3] The London Club, an informal group of international private lenders, has agreed to reduce Poland`s $13 billion debt by 45%, subject to an IMF agreement. [12] In August 1994, four months after the end of its previous SBA, Poland entered into the fourth agreement, a two-year SBA loan worth STS 333.3 million. [6] The reforms were identical to those of previous agreements: reducing the rate of inflation, reducing budget deficits and sustainable economic growth. [13] Poland`s fourth agreement ended in March 1996, with the Member State using SDR 283 million. [6] This was Poland`s last SBB with the IMF from 2018, with the country`s GDP reaching its pre-transition real level in 1996. [14] In October 2017, Polish Deputy Prime Minister and Finance Minister Mateusz Morawiecki announced in October 2017 that the country would resign from its current agreement (approved in 2017) and the credit line. [24] Morawiecki explained that the decision was taken after analysing tax data, macroeconomic parameters and the assessment of fiscal stability and foreign exchange reserves. [25] The FCL agreement expired on November 2, 2017. [6] The sixth authorized FCL was never used by the Polish government. [6] The FCL may still be cheaper than LCL, even if the containers are not fully filled.
If a shipment has a total volume of more than 14 CBM, FCL becomes a viable option. For example, while a 20-foot container can accommodate up to 33.08 CBM when a shipment consists of 15 CBM, there is a good chance that the cost of shipping a 20-foot container will be less costly than sending 15 CMB in an LCL agreement.