Ocean Freight Shipping

What You Need to Know

When it comes to shipping goods internationally, ocean freight is a popular option for many businesses. In fact, about 90% of goods are shipped through the sea. But what exactly is ocean freight, and is it always the best option for your business? In this post, we’ll take a closer look at ocean freight shipping, including its advantages and disadvantages, types of container shipping, the role of freight forwarders, and common shipping terms.

Advantages of Ocean Freight Shipping

• Lower costs: compared to airfreight, ocean freight is generally more cost-effective, making it a great option for large and heavy shipments.
• Eco-friendly: ocean freight produces fewer carbon emissions than airfreight, making it a more sustainable choice for businesses that prioritize environmental responsibility.
• Global reach: ocean freight can reach almost any destination worldwide, thanks to the vast network of shipping routes and ports.

Disadvantages of Ocean Freight Shipping

• Longer transit times: shipping by sea can take longer than airfreight, which may not be ideal for businesses that require faster delivery times.
• Limited flexibility: ocean freight schedules may not always align with your business needs, and you may need to plan your shipments well in advance.
• Potential for damage: while containers offer some protection, ocean freight shipments are subject to rough handling, weather conditions, and other risks that can damage goods in transit.

Types of Container Shipping

• FCL (Full Container Load): as the name suggests, FCL involves shipping a full container of goods that belong to one shipper. This is a good option for businesses that have enough cargo to fill a container and want to avoid sharing space with other shippers.
• LCL (Less than Container Load): LCL involves sharing a container with other shippers, which can help reduce costs for businesses that don’t have enough cargo to fill a full container.

The Role of Freight Forwarders

• Freight forwarders are essential to ocean freight shipping, as they provide a range of services such as collecting, loading, and delivering goods to the final destination.
• Freight forwarders also handle paperwork and customs clearance, ensuring that shipments comply with international regulations and requirements.

Common Shipping Terms

• FOB (Free on Board): the seller is responsible for delivering the goods to the port and loading them onto the ship. The buyer assumes responsibility for the goods once they are on board.
• EXW (Ex Works): the buyer is responsible for collecting the goods from the seller’s premises and arranging for transportation.
• DDP (Delivered Duty Paid): the seller is responsible for delivering the goods to the buyer’s premises, including all transportation costs and import duties.

Conclusion: Ocean freight shipping is a popular and cost-effective option for businesses that need to transport goods internationally. However, it’s important to consider the advantages and disadvantages of ocean freight, as well as the types of container shipping, the role of freight forwarders, and common shipping terms. By understanding these factors, businesses can make informed decisions and choose the shipping method that makes the most sense for their needs.