Ocean freight, also known as sea freight, is the most common mode of transport used by importers and exporters. It involves the shipping of goods by sea via shipping containers. Approximately 90% of all goods are shipped by ocean freight because it is the most cost-effective mode of international freight transport. However, it is slower than other modes such as courier, standard air freight, and express air freight. These modes are typically used for smaller shipments or products with a high value. To bridge the gap between the speed of air freight and the cost of ocean freight, some freight forwarders are now offering expedited freight. This service is faster than traditional ocean freight but less expensive than air freight. It works by streamlining ocean freight processes and only utilizing faster ocean services and premium trucking services.

Why Choose Sea Freight Over Other Shipping Methods?

There are several reasons why sea freight may be a better choice over other shipping methods:

• Capacity and value: One container can hold a large amount of goods, making it a cost-effective option for large shipments. Additionally, ocean freight is generally cheaper than air freight for shipments weighing more than 500 kg.
• Fewer restrictions: There are fewer restrictions on what goods can be shipped by ocean freight compared to air freight. This is due to the various laws, regulations, and carrier organization rules that apply to air cargo.
• Emissions: Ocean freight has a much lower carbon footprint compared to air freight. For example, according to research, 2 tonnes of goods shipped for 5,000 kilometers by ocean freight will lead to 150 kg of CO2 emissions, whereas the same shipment by air freight will lead to 6,605 kg of CO2 emissions.
• Transit time: Sea freight takes longer than air freight, but it is more reliable and consistent in terms of transit time, as it is less affected by weather and other unexpected events.
• Cost: Sea freight is generally less expensive than air freight, which makes it more cost-effective for large or bulk shipments, or for goods with a low value-to-weight ratio.
• Flexibility: Sea freight offers greater flexibility in terms of shipping schedules, cargo sizes, and routing options, making it ideal for a wide range of goods and industries.

What Are The Downsides Of Ocean Freight?

There are several downsides to ocean freight:

• Speed: Ocean freight is slower than air freight, with ships moving at a maximum of 18 mph (ca. 29 km/h) compared to airplanes cruising at 575 mph (ca. 925 km/h). This means that a shipment by air freight from China to the US can take at least 20 days less than by ocean freight.
• Reliability: Port congestion, customs delays, and bad weather conditions can add additional days to ocean freight transit times, making it less reliable than air freight. Additionally, tracking technology is not as widely used in ocean freight, which can make it more likely for shipments to get misplaced.
• Protection: Ocean freight is more likely to get damaged or destroyed than air cargo due to longer transit times and the movement of ships. However, the likelihood of cargo falling off ships is low, with only a few of the 120 million container movements per year getting lost at sea. Piracy is also a concern in certain hotspots around the world.
• Insurance: Ocean freight is more likely to get damaged or destroyed than air cargo, so it is important to consider cargo insurance when shipping goods by sea.

Common Ocean and Sea Freight Costs and Rates:

Expect to see these items on ocean freight quotes and invoices:

• Customs security surcharges (AMS, ISF)
• Container Freight Station (these are the consolidation charges, and apply for LCL only)
• Terminal Handling charges (charges by the port authority)
• Customs brokerage
• Pickup and delivery
• Insurance
• Accessorial charges (fuel surcharges, handling hazardous materials, storage, etc.)
• Routing charges (e.g., Panama Canal, Alameda Corridor)