What is Sea Freight – Find out about the types, advantages, disadvantages and prices available
WHAT IS SEA FREIGHT – SEE THE AVAILABLE TYPES, ADVANTAGES, DISADVANTAGES AND PRICES
If you run a business and are still worried about all those heavy loads that have to be transported long distances – you may want to stop and read this post. This will help you understand what medium to use to transport significant amounts between continents.
From this post you will learn:
- How to transport heavy goods by sea?
- What are the types of containers and their costs? (from $ 205 to $ 2,560 on average)
- Shipping benefits including lower cost and higher shipping capacity
Being in the shipping industry is not always fun. Transport hassle, fear of anticipated damage, and uncertainty are never pleasant. Check how sea freight allows you to transport goods over long distances at a relatively low price!
What is Sea Freight?
Shipping is primarily about shipping containers and the way they help transport goods across the ocean. The term “ocean freight” is often used to refer to the transportation of heavy goods by sea. You will be sailing smooth with this method of transport (pun intended), which due to many years of tradition is considered the safest form of long-distance shipment of goods.
Why is it worth using sea freight?
There is no doubt about the advantages of other methods of transporting goods. But did you know that the most frequently used medium in freight is sea, then road, rail and finally air? With the ocean at the fore, most of the transport of heavy cargo is done by containerization and transporting it through the waters of the world.
Oh, and before you think about the difference between ocean freight and ocean freight – we’ll tell you a secret. Both are the same! Ocean freight and ocean freight are synonyms. They serve the same purpose – to transport heavy goods from A to B by sea.
How does sea freight work?
Freight forwarders mediate in sea transport. They engage as a third party and pick up, organize and deliver your goods. Throughout this process, there are a few important things to remember. One of the most important things is to read the shipping contract.
Today, most business owners often recklessly browse the pages of shipping companies and customs agencies. To avoid mistakes in understanding the offer of shipping goods by sea, it is worth getting acquainted with the freight contract and understanding concepts that may seem like magic to a layman.
Some of the frequently used industry terms include:
FOB (Free on Board)
The FOB agreement means that both parties (you and the freight forwarder) share the responsibility for the delivery process. Freight forwarders undertake to ensure that their goods are properly packed and labeled. This happens before the cargo is loaded onto the transport vessel. It then becomes yours when it arrives at your location. However, this transfer takes place only after each party has taken all necessary steps in accordance with the regulations set out during the negotiation of the contract – there is no risk.
EXW (Ex Works)
In the case of an EXW contract, most of the responsibility rests with you. You are responsible for picking up the goods at the freight forwarder’s location and transporting them to their final destination – this means checking in with the carriers on your route if necessary!
DDP (Delivered Duty Paid)
DDP is a great way to get your products delivered with minimal effort. Freight forwarders take full responsibility while you (the sender) only cover the shipping costs under this program – in fact, easy selling is guaranteed!
Here are some terms to give you a general idea of the context. You’re always free to go deeper in person if you’re curious about it!
The further process gets a little technical. The contract is followed by steps such as export transportation, export customs clearance, origin handling, and more. But let’s not get overwhelmed by this for now. And let’s stick to our goal, which is to get acquainted with the idea of sea freight.
5 benefits of shipping
- Greater shipping capacity
Sending large shipments / goods by sea is the best way to ensure they get where you want them to be. This is because other shipping options only work for lighter products. They cannot accommodate larger packages. This means that this type of shipment is more costly than if we had used our efficient shipping service!
- Lower costs
Since ocean freight is only $ 0.50 per kg, it is a much cheaper option compared to the other options. Air freight costs can range from $ 4 to $ 6 per kilogram. While express airfreight charges can be higher, ranging from $ 60-80 for every 5 kilos you need to deliver. This makes ocean freight a much cheaper choice.
- Less restrictions
Shipping by air can be a challenge. For example, you cannot ship flammable products such as perfumes or biochemicals. It is subject to restrictions. They are related to the goods shipped and their weight classifications, which largely depend on where they are going etc. Shipping by sea is a comparably easier, less restrictive way of transporting goods!
- Lower carbon footprint
Sea transport has fewer CO2 emissions than air transport. In addition, the International Maritime Organization has issued new regulations that will further reduce ocean freight emissions!
- Sea freight charges
We know you are concerned about the cost. So we thought about being able to check the cost calculation method in real time. We will help you understand what you need to have in place before registering for sea transport!
Here is a list to help you see ocean freight charges:
- Security duties (AMS, ISF)
- Container Freight Station (These charges are for LCL only. They are consolidation charges!)
- Terminal service fees (fees charged by the port authority)
- customs agency
- Pickup and delivery
- Additional charges (fuel surcharges, handling of hazardous materials, storage, etc.)
- Route fees (e.g. from Rotterdam to Gdynia etc.)