Ocean freight?
Ocean freight shipping is the method of transporting containerised cargo loaded onto vessels by ocean. Over 90% of all the world’s trade is carried by ocean transportation. If you want to ship your freight around the world, ocean transport is the most convenient option.
As a general rule, shipments weighing more than 100kg – or consisting of multiple cartons – will be sent by ocean transport. The containers are designed and built for intermodal freight transport. That means the containers can be used across various transportation modes – from ship to rail to truck – without unloading and reloading the cargo from the container.
Types of ocean freight services
There are different types of international ocean freight export services for international trade. We’ll cover 11 of them. These services cater to various shipping needs, from large machinery to perishable goods. Each type offers unique benefits.
Full Container Load (FCL)
FCL means one shipper uses the entire container. It is ideal for large shipments, such as furniture, machinery, or bulk products. With FCL, goods are packed and sealed in a container at the origin and remain untouched until they reach the destination. This method offers more security and reduces the risk of damage since there is minimal handling. FCL is also faster because there are fewer stops and transfers compared to other methods.
Less than Container Load (LCL)
LCL (Less than Container Load) consolidates shipments from multiple shippers into one container, making it a cost-effective solution for small businesses that ship smaller quantities regularly. While LCL is economical because shippers share the container space, it involves more handling as goods are consolidated and deconsolidated, which may increase the risk of damage.
Also read The Difference between FCL vs LCL shipping
Roll-On/Roll-Off (Ro-Ro)
Ro-Ro ships carry vehicles and machinery that roll on and off the ship. This method is highly efficient for transporting cars, trucks, buses, and heavy equipment. Vehicles are driven onto the vessel at the port of origin and driven off at the destination port, reducing the need for lifting equipment. Ro-Ro shipping is straightforward and less costly for vehicle transport, ensuring vehicles arrive in good condition.
Break Bulk
Break bulk shipping is used for oversized or heavy items that do not fit in standard containers. Items are loaded individually and can include machinery, construction materials, and large equipment. Goods are placed directly into the ship’s hold or on flat racks. Break bulk allows for the transport of large and oddly shaped cargo that cannot be containerized. However, it usually requires more handling and specialized equipment.
Liquid Bulk Shipping
This service transports liquids in large quantities, including oil, chemicals, and liquefied natural gas (LNG). Specialized tankers, such as oil tankers and chemical carriers, are used for these shipments. These tankers are equipped with tanks that can safely contain and transport hazardous and non-hazardous liquids. Liquid bulk shipping ensures safe handling and efficient transportation of large volumes of liquids.
Dry Bulk Shipping
Dry bulk ships transport unpackaged bulk cargo such as grains, coal, minerals, and ores. These ships have large open holds designed to carry bulk goods in loose form. Dry bulk shipping is ideal for transporting large volumes of homogeneous materials. Loading and unloading are done using conveyors, cranes, or scoops, making it efficient for bulk commodities.
Reefer Shipping
Reefer containers are refrigerated units used to transport perishable goods like food, pharmaceuticals, and flowers. These containers maintain a controlled temperature throughout the journey, ensuring that products remain fresh. Reefer shipping is essential for goods that are sensitive to temperature changes. These containers can regulate temperatures from below freezing to room temperature, making them versatile for various perishable items.
Flat Rack Containers
Flat rack containers are used for oversized cargo that does not fit in standard containers. They have collapsible sides and ends, making them ideal for transporting large machinery, pipes, and vehicles. Flat racks allow for easy loading and unloading from the sides and the top. They provide flexibility for transporting wide and heavy items that require special handling.
Open Top Containers
Open top containers have a removable roof, allowing for loading cargo from the top. These containers are suitable for heavy and tall items such as timber, scrap metal, and machinery. Open top containers are ideal for cargo that cannot be easily loaded through the doors of a standard container. They provide an easy solution for shipping over-height cargo.
Tank Containers
Tank containers are designed to carry liquids, gases, and powders. They are built to international standards for safe transportation. Commonly shipped items include chemicals, wine, and edible oils. Tank containers are made of stainless steel and are surrounded by protective layers. They provide a safe and efficient way to transport hazardous and non-hazardous liquids in bulk.
High Cube Containers
High cube containers are taller than standard containers, providing extra space for voluminous cargo. They are typically 9.5 feet tall, compared to the standard 8.5 feet. High cube containers are used for lightweight but bulky goods such as furniture, cotton, and plastic products. The additional height allows for more storage space without increasing the container’s footprint.
Example of ocean freight costs
Here’s an example table showing how different factors affect ocean freight costs. Note that these are example figures and actual costs can vary.
| Cost Factor | Description | Cost (Example) |
|---|---|---|
| Shipment Volume and Weight | 20-foot container (full) | $1,000 |
| Distance and Route | New York to Shanghai | $3,000 |
| Container Type and Size | Standard 40-foot container | $1,500 |
| Freight Class and Cargo Type | Standard goods | $200 |
| Market Demand and Seasonality | Peak season surcharge | $500 |
| Fuel Costs and Surcharges | Fuel surcharge | $300 |
| Currency Exchange Rates | Currency fluctuation adjustment | $100 |
| Service Level and Additional Services | Warehousing fee | $150 |
| Carrier Contracts and Negotiations | Long-term contract discount | -$200 |
| Port Fees and Handling Charges | Loading/unloading fees | $250 |
| Insurance | Insurance premium | $150 |
| Total Cost | $6,050 |
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