The Complete Guide to Understanding What is Ocean Freight
Published on Aug 30th 2024
Picture this: You just ordered something from an International online store and are waiting for the shipment to arrive. And that gets you wondering, how will your order arrive in India?
Approximately 90% of the world’s cargo is transported via ships, more specifically, by Ocean freight. But what is ocean freight?
It is the transportation of goods across the world’s seas and oceans using cargo ships. This includes container ships, bulk carriers, tankers, and more. They transport a wide range of commodities, such as raw materials, manufactured goods and oil.
How does Ocean Freight work?
The process encompasses logistics of loading shipping and unloading goods at ports. It is managed by shipping companies, port authorities and logistics service providers. Ocean freight plays a crucial role in international trade, enabling businesses to export and import goods globally at relatively low costs, compared to other modes of transport.
It begins when a party books a shipment through a freight forwarder or shipping line. Freight forwarders act as intermediaries who manage the logistics of shipment from a place of origin to the destination.
Then, the items are packed into shipping containers, which come in standard sizes (20 foot to 40 foot). It is designed for easy handling and stacking on cargo ships.
Once packed, the containers are transported to the port for departure. They also go through customs clearance and security checks.
Finally, the cargo is loaded into the container ship for the journey across the ocean.
Upon arrival, containers are unloaded and cleared through customs before being transported to their final destination.
Over the years, there have been several advancements that ensure sustainability in ocean freight.
Reduced Speed Navigation (Slow steaming): Decreasing vessel speeds to cut down fuel use and emission. Many ocean freight services are integrating eco-friendly practices like slow steaming to reduce carbon footprint.
Hull Design innovations: Streamlined shapes and air lubrication technologies for better propulsion and fuel efficiency, potentially reducing emissions by 10 to 15%
Route Optimisation: Leveraging precise weather and maritime conditions forecasting for safer, fuel-efficient navigation. Route optimisation software reduces ocean freight travel distances and fuel consumption, contrary to sustainability goals.
Autonomous Vessels: Sensor and Algorithm-equipped ships for human-free operation enhancing safety and efficiency.
Green Maritime Practices: There has been a steady adoption of fuels such as LNG, Biofuels, hydrogen and ammonia, alongside energy-saving technology for a greener shipping industry. Also, there has been an increase in green port operations, such as electrification and waste management, playing a role in sustainability in ocean freight.
Different Types of Sea Transport:
Container Ships: These are standard shipping containers used for common cargo such as consumer goods, clothing and machinery. It is especially advantageous for intermodal transport and is widely used in international trade.
Bulk Carriers: Mainly used to transport unpackaged bulk cargo, especially for raw materials such as coal, grain, ore, cement and chemicals. There are two types of bulk carriers: Dry Bulk, which is used for grain, coal and minerals, and Liquid Bulk, used to transport oil, chemicals and LNG.
Reefer Ships: These ships carry perishable goods that require regulated temperatures, like fruits, vegetables, meat, seafood and Pharmaceuticals.
Passenger Ships: These are more popular among explorers, and often used to transport people or vehicles. There are two types: Cruise ships, which have amenities for passengers to enjoy, and ferries, or small boats that take them to the port.
Roll on/Roll off (RoRo): These are used for shipping vehicles that are driven into the ship.
Break Bulk: Mainly used for cargo that is too large to fit in standard containers. Examples include heavy machinery or oversized goods.
Full Container Load: This involves one shipper using an entire container. It’s cost-effective, especially for large shipments.
Less than Container Load: Here, multiple shippers share container space. It is suitable for smaller shipments that don’t require a full container.
Advantages of Ocean Freight:
Cost Effective: Ocean Freights are the most economical way to transport goods, particularly large ones that don’t have an expiration date.
Capacity: With FCLs and LCLs, ships can transport a large amount of goods altogether.
Versatility: From perishable goods to finished goods, anything can be transported via ocean freight!
Disadvantages of Ocean Freight:
Longer Transit Times: Compared to air transportation, ocean freight can take a longer time to reach its destination.
Risk of Delays: With ocean weather being unpredictable, there is a chance of delays in shipments.
Complex Logistics: It’s not easy to operate ocean freight; there are a lot of logistics involved, some of them more complex than others.
