Shipping is the cornerstone of global trade. Ocean freight involves the coordination of various aspects of logistics, from cargo pickup to loading onto the vessel, unloading, delivery and customs clearance. 

But how does this shipping method fit into the supply chain as a whole?

Sea freight logistics is a common shipping method, especially when goods need to travel a long distance.  How does this shipping method fit into the supply chain as a whole? Here we’ll discuss what sea freight logistics is, how it fits into the supply chain, the pros and cons of using sea freight shipping, and some tips for choosing the right sea freight forwarder.

WHAT IS OCEAN FREIGHT LOGISTICS?

Ocean freight logistics involves the planning and transportation of freight by container ship. Freight is loaded into containers that are placed on an ocean carrier to their destination.

The movement of goods around the world is facilitated by a freight forwarder or agent, with their expertise helping to deliver goods efficiently and safely to its destination. In particular, freight forwarders act as coordinators between businesses and various ocean carriers, providing access to a broader range of carrier options and leveraging economies of scale due to their extensive customer base. 

This expertise is particularly valuable for businesses involved in importing or exporting goods across long distances, as it helps to mitigate potential risks or delays. Freight forwarders mitigate risk by offering flexibility and multiple products resulting in competitive rates and favourable terms.

HOW DOES FREIGHT FORWARDING FIT INTO THE SUPPLY CHAIN?

The role of ocean freight in the supply chain is generally to move large quantities of goods from shipper to consignee. As part of this, freight forwarders are an important link in the supply chain as they coordinate the entire logistics process through their network offices around the world. 

Though ocean freight transport often involves the longest leg of a product’s journey through the supply chain, it’s just one part of the process and one line of the chain. 

Before goods embark on their ocean voyage, they must first be transported from the supplier to the port of departure. Once the shipment has arrived at the port of destination, haulage services are often utilised to move the item from the port to a storage facility. 

From there, containers are often taken via rail or truck to a warehouse to be unloaded.

TYPES OF OCEAN FREIGHT PRODUCTS

There are four main types of ocean freight shipping:

  • Full container load (FCL)- FCL ocean freight involves the shipment of a full container of goods.
  • Less than container load (LCL)- LCL ocean freight combines shipments from multiple different shippers into one container. This is ideal when a shipper needs products moved via ocean but doesn’t have a full container of goods.
  • Dry bulk shipping- This specialised ocean freight shipping method involves the placement of certain dry goods directly into the hold of an ocean carrier, rather than in a container that is then moved onto the ship.
  • Roll on, Roll Off (RORO)- This type of ocean shipping is used for items like vehicles, trucks or harvesters that don’t need to be containerised to be moved onto the ship. Instead, they are rolled or driven directly onto the cargo ship and secured, then rolled or driven off the ship at the destination.

THE BENEFITS AND DISADVANTAGES OF MOVING GOODS VIA OCEAN FREIGHT

Like any other shipping method, there are upsides and downsides to shipping cargo via ocean freight.

The Benefits of Shipping via Ocean Freight

One of the biggest benefits of ocean freight is that it’s cost-effective, especially when utilised for long trips. Ocean freight shipping allows you to send large quantities of goods at the same time at a cost significantly lower than shipping via other methods. 

For instance, cargo vessels can carry an average of 18,000 containers, meaning each ship can move a large amount of cargo in each shipment. The high volume of cargo containers on each ship makes it less expensive than other shipping methods per container. 

Whether you’re using full container load (FCL) or less than container load (LCL), ocean freight shipping is cheaper than moving similar amounts via air freight.

Indeed, thanks to the large volume of cargo on each ship, ocean freight shipping has a smaller carbon footprint than other shipping methods. That makes it a great option for companies looking to reduce their environmental impact.

Likewise, ocean freight shipping is a great option for large, heavy, or bulky items, since the weight doesn’t have as much impact on shipping as it does in other cross-ocean shipping methods.

The Downsides of Sea Freight Shipping

The biggest downfall of ocean freight shipping is that it takes time. A megalithic container ship can’t cross an entire ocean in a couple of days as an aeroplane can. The loading and unloading of the ship can tack on extra time to the journey, as well.

Also, ocean freight shipping is not a great option for smaller quantities of goods, even if you plan to ship your items LCL. It can be cost-prohibitive if you don’t have a certain amount of items, making air freight or courier services more efficient and likely faster.

Another significant challenge to ocean freight is the risk of congestion and global disruptions. As we’ve seen in recent years with the Suez Canal blockage, black swan events can cause ports to become congested. 

This can create massive bottlenecks in global logistics, further complicating the supply chain. This can hugely affect delivery timelines and costs.

How to Choose an Ocean Freight Forwarder

Opting for a freight forwarder can offer numerous advantages for your business. When you’re choosing one, there are some factors you can take into consideration to find the right provider for your company. 

Some forwarders focus on specific types of shipments, shipment methods, or other factors, so be sure to check with potential forwarders on the types of shipments they’ve handled in the past.

Consider these questions when you’re shopping for a ocean freight forwarding partner:

  • What is your expected shipping volume? This will help determine if the forwarder can handle your freight needs.
  • How frequently do you need shipments? Regular or occasional shipments can impact pricing and service options.
  • What kind of merchandise are you shipping? The nature of your goods will influence the necessary packaging, handling, and documentation.
  • What is your desired delivery time? Express or standard shipping options will vary depending on the forwarder's network and vessel schedules.
  • Can you fill a full container? FCL shipments are generally more cost-effective but may not be feasible for smaller volumes.
  • What are your origin points, and where are you shipping to? The forwarder's network and expertise in specific regions can affect both cost and efficiency.
  • If you need LCL, is it worth the longer transit time? While LCL is often more economical than FCL for smaller shipments, you’ll need to consider the potential trade-off of 10-15 extra days in transit compared to the faster delivery times of FCL.

WHY CHOOSE SEKO FOR OCEAN FREIGHT?

SEKO are a leading global logistics provider that offers comprehensive solutions for ocean freight. Our vast network of logistics providers across the globe and NVOCC license means we can offer flexible, customised ocean freight solutions suited to your needs. 

Need proof? Just take a look at our vast array of case studies to see the difference that SEKO can make. For example, the SEKO team designed an ocean freight solution to help Ember expand operations to 26 countries. 

Interested? Reach out to our team here to inquire about our services.

OCEAN FREIGHT FORWARDING FAQS

What types of goods are typically shipped via ocean freight?

Ocean freight is commonly used to ship large, heavy, or bulky items, as well as raw materials and components. It’s also ideal for transporting goods in large volumes, such as full container loads (FCL) or less than container loads (LCL).

What is the difference between FCL and LCL shipping?

Full Container Load (FCL) involves shipping an entire container of goods, which is more cost-effective for large volumes. Less than Container Load (LCL) combines shipments from multiple shippers into one container, making it suitable for smaller volumes but potentially more expensive per unit.

What documentation is required for ocean freight shipping?

Required documentation for ocean freight shipping typically includes a bill of lading, commercial invoice, packing list, and any necessary customs documentation. The specific requirements may vary depending on the countries of export and import.