Introduction to Ocean Freight

Ocean freight is a vital component of global trade, responsible for transporting approximately 90% of goods by volume. Importers and exporters must understand the basics of ocean freight to navigate the complexities of international shipping effectively.

Main trade lanes connect Asia–Europe, Asia–North America, and intra-Asia routes. Lead times typically range from 15–45 days port-to-port depending on service string, transshipment, and congestion.

Key Terminology in Ocean Freight

Essential terms every trade professional should know:

Bill of Lading (B/L): Document of title and receipt for cargo; original B/L often required for release.
TEU / FEU: Twenty-foot / forty-foot equivalent unit — standard container size references.
Demurrage & Detention: Charges when containers stay at port or outside depot beyond free time.
Freight Forwarder: Agent booking space, coordinating documentation and inland legs.
Incoterms: Define who pays ocean freight, insurance, and risk transfer (FOB, CIF, etc.).

Types of Ocean Freight Services

There are two primary types of ocean freight services: Full Container Load (FCL) and Less than Container Load (LCL). FCL is more cost-effective per CBM for larger shipments; LCL suits smaller volumes that do not fill a container. FCL offers faster transit and lower handling risk; LCL adds consolidation/deconsolidation steps and shared-container security considerations.

Special equipment — reefer, open-top, flat-rack — applies to temperature-controlled or oversized cargo. Verify equipment availability on your lane before confirming sales contracts.

Understanding Shipping Costs

Shipping costs include:

Base ocean freight — quoted per container (FCL) or per CBM/ton (LCL).
Bunker Adjustment Factor (BAF) — fuel surcharge fluctuating with oil prices.
Peak season / congestion surcharges — lane-dependent.
Origin/destination charges — THC, documentation, seal, VGM weighing.
Inland haulage — trucking/rail to/from port under door terms.

Request all-in quotes with validity dates; reconfirm before cargo ready date as rates change weekly on major lanes.

Documentation Required for Ocean Freight

Proper documentation avoids delays and demurrage:

Commercial Invoice — value, Incoterms, buyer/seller details.
Packing List — weights, dimensions, package marks matching B/L.
Bill of Lading — shipper, consignee, notify party, container/seal numbers.
Certificate of Origin / licenses — if FTA or regulated goods apply.
Export/Import declarations — aligned HS codes and values.

Customs Regulations and Compliance

Compliance with customs regulations is crucial for successful ocean freight operations. Importers must file entry declarations with correct HS classification, valuation, and origin claims. Exporters must meet export controls and denied-party screening. VGM (verified gross mass) submission is mandatory before container loading on SOLAS-regulated vessels.

Choosing a Freight Forwarder

Select forwarders based on lane expertise, document accuracy track record, and communication responsiveness. Request references on similar commodity/shipment size. Clarify scope: booking only vs. door-to-door, customs brokerage inclusion, and liability limits. A reliable forwarder coordinates carriers, terminals, and trucking partners — reducing surprises at origin and destination.

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