Understanding Ocean Freight: Benefits, Regulations, and Costs Explained...

Written by Transocean Logistics | Dec 27, 2024 1:29:42 PM

What is Ocean freight?

Ocean freight shipping is the method of transporting containerised cargo loaded onto vessels by sea. Over 90% of all the world’s trade is carried by sea. If you want to ship your freight around the world, ocean freight is the most convenient option.

As a general rule, shipments weighing more than 100kg – or consisting of multiple cartons – will be sent by sea freight. 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.

Types of Ocean Freight

There are four major types of shipping terms that you should know about, also known as incoterms (International Commerce Terms), which set out clear definitions for where the goods are dispatched from, and to.

  • EXW, or ExWorks means the supplier transports the goods to the factory or manufacturer.
  • FOB, or Free on Board, which delivers to the port or terminal in the country of the supplier.
  • CIF, or Cost, Insurance and Freight, which covers transport to the buyer’s country
  • DAP/ DDU, or Delivery at Port / Delivery and Duty, Unpaid, which delivers all the way to your facility or warehouse, excluding the cost of tariffs and taxes

Do You Need Ocean Freight for Your Business?

Ocean freight offers several unique advantages over air, truck, or rail service. Ocean freight is great for clients shipping large, bulky cargo shipments, and shipments of raw materials, though the options are virtually limitless. Liquid bulk items, dry bulk, container cargo, and machinery are often shipped by sea. Sea freight might be right for your business if you want to ship long distances cheaply. After all, sea freight is often several times cheaper than air. Even for small shipments, ocean freight might be the best option. A transportation expert at Santos International can help you determine which of our comprehensive range of shipping methods you need.

Transocean Logistics is your partner

We provide fully integrated transportation services for part cargo (LCL) and full container loads – whether you require a logistics partner for a specific part of your supply chain or complete supply chain solutions. We have the experience and skills necessary to tackle just about every type of job that comes our way. With Transocean Logistics, our clients know exactly what to expect - professionalism, efficiency and exceptional results. Based on your requirement we offer optimised logistics concepts including global insurance and complex customs services

The company is a leader in this sector of the Irish market. Our FCL services include excellent scheduled competitive services to Asia, the Middle East, US & Canada, Australia & New Zealand, South America, Mediterranean and Africa.

We offer very competitive rates and excellent service.

The Advantages of Transocean Logistics and International Ocean Freight Services

  • Low-Cost
  • Large or Small Shipments
  • Large, Heavy Cargo
  • Reliable Shipment Security
  • Carbon-Efficient
  • Industry-Specific Expertise
  • Port of Brownsville Foreign Trade Zone
  • Flexible Options
  • One-Stop-Shop for Logistics, Customs Brokerage, and Warehousing
  • Short/long-term storage options

  • Secure, monitored facilities

  • Immediate access and availability

  • Electronic inventory management

  • Pick and pack distribution

  • Dock transfers or cross docking

  • Delivery anywhere in the globe.

     

We have extensive knowledge in the area of Letters of Credit and their implications for consignments and related documents.

We have vast experience in the area of Documentation for exports. Our Documentation Department is extremely proficient in the preparation of all types of Bills of Lading and can advise customers on the how best to protect their interests. Agricultural Bills of Lading can be another regular customer requirements especially where there are various types of refunds involved.

Specialists In Shipping Recyclable Commodities

The company has specialist knowledge and extensive experience in shipping all kinds of recyclable commodities such as waste paper, bone meal and scrap metals. These commodities require experienced handling because of the potentially problematic nature of the products involved. Familiarisation with EU Regulations, Hazardous Regulations, TFS and CICC is essential. Ability to deal with and solve problems through negotiation with authorities both in Ireland and in continental transhipment ports is an important factor in shipping these commodities.

Insurance

We offer comprehensive Cargo Insurance for all types of cargo and movements. In addition we are insured by ITIC, London for Freight Forwarders Liability and Errors and Omissions.

We also insure all significant receivables with Atradius to protect our own financial position and thereby give further security to our own customers.

Benefits and disadvantages of ocean freight shipping

There are numerous benefits and disadvantages when shipping ocean freight. We want to be transparent about both, so you know whether this is the best option for you.

The benefits of ocean freight shipping include:

  • Cost-effective freight method compared to other modes (e.g. air freight)
  • Cheaper than other freight modes (e.g. air freight) over long distances
  • Most carbon-efficient solution

The disadvantages of ocean freight shipping include:

  • Longer transit time than air freight, which means you have to wait longer for your goods to arrive
  • When shipping smaller amounts of goods, the price is not sustainable

Regulations on Sea Freight: What You Need To Know

Like any other type of freight, there are specific regulations in place on international and international ocean freight.

First, there are some restrictions on the types of hazardous materials that can be sent by sea freight, including some flammable and dangerous goods. There are also regulations on the import and export of goods via ocean freight. You can avoid penalties and ensure that your shipments are compliant by working with a U.S. customs broker at Transocean Logistics company. We can be your trusted partner in international shipments. 

Container Transport Services

Transocean Logistics provides the following services:

  • FCL (Full Container Load) – transportation of full containers all over the world.
  • LCL (Less than Container Load) – transportation of small parcels all over the world.
  • FCL/LCL door-to-door service in the Baltic States, CIS, and Central Asia countries.
  • Customs clearance.
  • Reloading operations in ports, terminals, and customs warehouses inspection of goods, and survey service.
  • Transport documentation.
  • Cargo transport insurance according to the client’s needs

Containers and goods are delivered to a Container Freight Station or Container Yard for consolidation and loading onto a ship.

What is the cost of ocean and sea freight?

There are numerous tariffs and costs to consider when having goods shipped or importing goods from overseas. It depends on the agreement with your supplier – will they just be delivering to their port, your terminal, your warehouse? Be sure to know which incoterm relates to your shipping contract, so that the responsibility between yourself and the supplier is clear.

Fees include, but aren’t limited to:

LCL or FCL fees
  • Transportation to Port of Loading
  • Export customs declaration
  • Loading port fees
  • Ocean freight charge
  • Insurance
  • Destination port fees
  • Import customs clearance
  • Customs duty/tax
  • Transportation from the Port of Destination
  • Destination country customs related fee (i.e. Duty/Tax)
  • Destination port/terminal handling fee (i.e. THC)
  • Destination agent service fee (i.e. D/O)

 

Bill of Lading and Shipping

Shipping goods also requires a Bill of Lading (BL), for sea freight, these are called Seaway or Ocean Bills of Lading. A Bill of Lading lists the cargo that will be loaded or carried on a ship, given to the consignee of the goods. A Bill of Lading can act as a receipt that goods are loaded, a form of contract to demonstrate that goods are being shipped, and a document to the title of goods. 

 

Read our guide on Bills of Lading and what you need to do here.