What is Ocean Freight Shipping?
Ocean freight shipping, or simply ocean freight, refers to the transportation of goods internationally via ocean. It’s also called sea freight when goods are moved by sea instead of the ocean. Ocean freight shipping is considered the most popular, cost-effective, and widely used transportation method for global trade. According to an estimate, around 90% of international trade is conducted by ocean freight. Ocean freight is a preferred method of transportation where massive volumes of goods need to move between countries. Freight can be shipped via the ocean in many ways, among which containerization is the most popular. In containerization, goods are transported in containers. The standard size of ocean freight containers is in the range of 20 to 40 feet. However, shippers may need to use other shipping methods depending on their freight’s size, weight, and dimensions.
What are the different types of Ocean Freight shipping?
As we mentioned earlier, ocean freight shipping is carried out through container shipping, which provides lots of advantages, especially regarding the safety and security of freight. Containers can be easily transported on ships. Depending on the space occupied by the cargo in a container, ocean freight shipping has two types:
• FCL (Full-Container Load)
FCL is the short form of Full-container load. In FCL shipping, the whole space of a container is occupied by freight from a single shipper or distributor. FCL shipping transports your goods in the exclusive container(s) dedicated only to your shipment. It’s an excellent ocean freight shipping option when your freight needs special care during transit and is too sensitive to be transported with goods from other shippers. FCL ensures that your goods will be undisturbed during the transit process.
• LCL (Less-Than-Container Load)
In LCL shipments, your goods are shipped in a shared container. It’s a good choice when your freight doesn’t fill the space of a whole container. Your goods are loaded with cargo belonging to other shippers, so you don’t have to pay the expenses of an entire, dedicated container. LCL ocean freight shipping allows you to split the shipping cost by sharing the container with other shippers. The only downside of LCL shipping is that your goods may be exposed to mishandling, disturbance, or even damage during the transit process.
What are the Advantages of Ocean Freight Shipping?
Listed below are some common advantages of ocean freight shipping:
• Cost-effective
Compared to other international transportation methods, such as rail, road, and air, ocean freight shipping is much more affordable and cost-effective, especially for transporting goods over large distances.
• Best transportation option for Bulky goods
Ocean freight shipping is the easiest and most affordable way to transport heavy and bulky freight. Heavy and oversized loads, such as automobiles, machinery, and industrial parts, can be best shipped via ocean freight.
• Eco-friendly
Ships have a minimal carbon footprint because they consume lesser fuel than rail and airplanes. Therefore, ocean freight shipping is considered an eco-friendly transportation method.
Ocean freight shipping challenges
Like all other transportation sectors, ocean freight shipping is also facing some critical challenges, such as:
• Port Congestion
Port congestion is one of the biggest challenges ocean freight shipping faces nowadays. It is caused by the exhaustion of port capacity when ships arrive at the port but cannot load or unload at the scheduled time. Exhaustion of port capacity leads to the queuing up of ships, which turns into port congestion.
When a port is congested, ships have to wait for their turn to get anchorage space and stay stuck there for many days. Port congestion causes loss of money, time and supply chain disturbance.
Some other noteworthy causes of port congestion include:
o Overbooking of port or its terminals
o Unforeseen delays, such as weather conditions that cause vessels to line up outside
o Labor strikes
o COVID-19 pandemic
o Lack of port handling equipment
o Lack of yard space
o Unfavorable geographical location of the port
o Trade wars
• Soaring fuel prices
Soaring fuel prices is one of the post-pandemic implications. According to an estimate, the gradual spike in fuel prices has caused the freight rates to go up by 300%, affecting all stakeholders, whether shippers, transporters, or consumers.
• Shipping container shortage
During the pandemic, the demand for goods gradually decreased, which made many manufacturers close their operations. As a result, many containers that were used to transport goods stopped moving or anchored at ports, which increased the shipping container shortage.