SEA FREIGHT
Definition of Ocean(Sea) Freight
International Ocean Shipping refers to a mode of transportation utilizing ocean routes and ships as the primary means to move goods or personnel between different countries or regions. It is one of the most critical transportation methods within the global trade system, carrying the major portion of global trade volume.
Importance of Ocean Freight
Share of Cargo Volume: Approximately 80%–90% of globally traded goods (by weight) are transported via ocean freight. For bulk commodities (such as petroleum, iron ore, coal, grain, etc.), this share is even higher, exceeding 90%.
Share of Trade Value: By trade value, ocean freight accounts for about 70%–80% of global trade.
Containerized Transport: Over 60% of ocean freight cargo is moved in containers, enhancing the efficiency and standardization of international trade.
Advantages of Ocean Freight
✅Low Transportation Cost: Ideal for bulk cargo, offering lower unit transportation costs and effectively reducing overall shipping expenses.
✅High Capacity: Capable of transporting large volumes of goods in a single shipment, meeting the demands of global trade for bulk, heavy, and oversized commodities.
✅Global Network Coverage: Boasts well-established international routes and a mature port network, enabling efficient and sustainable intercontinental transport.
✅High Safety: Stringent maritime standards and safety management measures ensure cargo security during transit.
✅Environmental Benefits: Relatively low energy consumption per ton of cargo transported, resulting in lower carbon emissions compared to air freight and a reduced environmental impact.
✅Ocean freight holds irreplaceable advantages for bulk cargo transport and global trade, though it still has limitations in terms of transit times and handling efficiency.
FCL vs LCL
In international ocean shipping, container transport is primarily divided into FCL (Full Container Load) and LCL (Less than Container Load).
Key Terminology：
FCL: Full Container Load
LCL: Less than Container Load
Shipper: Party sending the goods (Exporter)
Consignee: Party receiving the goods (Importer)
Freight Forwarder/Consolidator: Company handling LCL shipments
W/M: Weight or Measurement (cubic volume), whichever yields higher revenue for the carrier
CBM: Cubic Meter(s) – standard unit for LCL volume measurement
CY/CY (Container Yard to Container Yard): Common term for FCL door-to-door movement where shipper/consignee handles terminal pickup/dropoff.
CFS/CFS (Container Freight Station to Container Freight Station): Common term for LCL door-to-door movement involving consolidation/deconsolidation at the forwarder’s warehouse.
Classification of Common Ocean Freight Containers
By Size
Standard international container sizes are primarily defined by ISO (International Organization for Standardization).
20-foot Container (20ft, TEU – Twenty-foot Equivalent Unit)
Payload: 17 tonnes
Capacity: 27 CBM (Cubic Meters)
Dimensions: 5.69m (L) × 2.13m (W) × 2.18m (H)
40-foot Container (40ft, FEU – Forty-foot Equivalent Unit)
Payload: 22 tonnes
Capacity: 58 CBM
Dimensions: 11.8m (L) × 2.13m (W) × 2.18m (H)
40-foot High Cube Container (40ft HC)
Payload: 22 tonnes
Capacity: 68 CBM
Dimensions: 11.8m (L) × 2.13m (W) × 2.72m (H)
45-foot High Cube Container (45ft HC)
Payload: 29 tonnes
Capacity: 78 CBM
Dimensions: 13.5m (L) × 2.13m (W) × 2.72m (H)
By Purpose/Type
Dry Container (DC): The most common standard box, used for general cargo like garments, electronics, machinery, etc.
Open Top Container (OT): Has no fixed roof (covered by tarpaulin), suitable for over-height cargo like large machinery, steel, timber, etc.
Flat Rack Container (FR): Consists of a base and end walls only, lacking side walls and a roof. Designed for over-height, over-width, or overweight cargo like heavy machinery, vehicles, etc.
Dangerous Goods Container: Specifically built and certified for transporting chemicals, explosives, flammables, etc., complying with the IMDG (International Maritime Dangerous Goods) Code.
Reefer Container (RF): Equipped with a refrigeration system, used for temperature-controlled cargo like food (fruits, vegetables, meat, seafood), pharmaceuticals, etc.
Tank Container: Designed for liquid cargo, such as chemicals, food-grade liquids (edible oils, milk, alcohol), or hazardous liquids.
Break Bulk and RORO Shipping
Break Bulk Ship
A vessel specifically designed to transport non-containerized bulk or general cargo (like steel, machinery, timber, pulp, etc.). Cargo is typically loaded/unloaded using cranes, not via containers.
Characteristics:
Cargo Suitability: Oversized, overweight, or lengthy bulk/general cargo like machinery, steel coils, timber, pipes, automotive parts.
Handling Method: Loaded/unloaded using port cranes or the ship’s gear, requiring manual lashing and securing.
Handling Time: Lengthy, involving specialized stowage operations.
Freight Cost: Relatively high, calculated based on cargo dimensions, weight, and handling requirements.
Cargo Safety: Vulnerable to sea conditions; requires professional lashing/securing to prevent damage during transit.
Applicable Scenarios:
Oversized cargo: Equipment too large for containers (e.g., wind turbine blades, bridge components).
Industrial raw materials: Bulk steel, large paper rolls, construction materials.
Project logistics: Transporting materials for large infrastructure projects (e.g., power plant, refinery equipment).
RORO Ship (Roll-on/Roll-off Ship)
A specialized vessel featuring integrated ramps for self-propelled loading/unloading. Cargo drives directly on and off the vessel via ramps, eliminating the need for crane lifts.
Characteristics:
Cargo Suitability: Wheeled cargo like cars, trucks, trains, construction equipment (excavators, bulldozers), or general cargo on trailers.
Handling Method: Cargo drives on/off via stern, side, or bow ramps; no crane required.
Handling Time: Short and highly efficient; entire vessels can often be loaded/unloaded within hours.
Freight Cost: Relatively lower due to high handling efficiency and no need for crane equipment.
Cargo Safety: Generally more stable than break bulk, reducing risk of damage from lifting.
Applicable Scenarios:
Automobile transport: Used by global manufacturers (e.g., Toyota, VW) for exporting finished vehicles.
Construction equipment: Transporting large self-propelled machinery like excavators, bulldozers, and agricultural equipment.
Intermodal transport: Integrates efficiently with road/rail transport for fast handling and efficient movement.
Guide to Ocean Freight from China
Major Ports in Mainland China
Shanghai Port
Location: Shanghai, East China, at the mouth of the Yangtze River.
Characteristics:
It has been the world’s busiest container port for many consecutive years.
Possesses globally advanced port facilities.
A vital international shipping and trade hub connecting continents worldwide.
Ningbo-Zhoushan Port
Location: Ningbo City, Zhejiang Province, East China; Zhoushan Archipelago.
Characteristics:
China’s second-largest container port and one of the world’s largest cargo tonnage ports.
Major handler of bulk commodities, oil, and containerized cargo.
Modern facilities, massive throughput, extensive international route coverage.
Shenzhen Port
Location: Southern coastal China, Shenzhen City, Guangdong Province, adjacent to Hong Kong.
Characteristics:
Comprises multiple terminals, including Shekou, Yantian, and Chiwan.
One of China’s most crucial foreign trade export ports, especially for electronics, machinery, and consumer goods.
An efficient logistics system makes it a key supply chain node.
Guangzhou Port
Location: Guangzhou City, Guangdong Province, Southern China, within the Pearl River Delta.
Characteristics:
Rich inland waterway network supporting extensive hinterland transport.
An important trade and logistics center in Southern China.
Tianjin Port
Location: Tianjin City, Hebei Province (Northern China), Bohai Bay.
Characteristics:
One of Northern China’s largest and most important ports.
Primarily handles bulk cargo like coal, steel, automobiles, and machinery.
Qingdao Port
Location: Qingdao City, Shandong Province, Yellow Sea coast.
Characteristics: Efficient operations and strong throughput capacity ensure a significant position in global shipping.
Dalian Port
Location: Dalian City, Liaoning Province, Northern Yellow Sea.
Characteristics: Primary port for Northeast China, handling various cargoes including bulk, coal, oil, and containers.
Xiamen Port
Location: Xiamen City, Fujian Province, Taiwan Strait.
Characteristics:
Acts as a gateway for Southeast China’s coast and plays a significant role in the “Belt and Road Initiative”.
Primarily handles containerized cargo, especially electronics, textiles, and electromechanical products.
Lianyungang Port
Location: Lianyungang City, Jiangsu Province, Yellow Sea coast.
Characteristics: An important comprehensive port in China, particularly strong in handling bulk commodities like ore, coal, and steel.
Components of Ocean Freight Costs from China
Ocean Freight: The base transportation fee paid to the shipping line.
Local Charges (Terminal Handling Charges – THC): Miscellaneous fees at the port of origin (POL) and port of destination (POD).
Customs Fees: Fees for export (POL) and import (POD) customs declaration and clearance.
Trucking (Drayage) Fee: Cost for transporting the container between the port and the designated loading/unloading point.
Insurance Premium: Cost for marine cargo insurance coverage.
Duties & Taxes: Import duties, value-added tax (VAT), or consumption taxes levied at the destination.
Factors Influencing Ocean Freight Costs
Cargo Attributes: Includes volume, weight, type (general cargo, dangerous goods, refrigerated, etc.), packaging, and stuffing method (FCL vs LCL).
Route & Distance: The length of the voyage, whether direct or transshipped, impacts fuel consumption and transit time, directly affecting costs.
Market Supply & Demand: Peak/off-peak seasons, global economic conditions, and trade policies cause fluctuations in shipping supply and demand, influencing freight rates.
Port Fees & Operational Costs: Costs for port handling, storage, congestion surcharges, and any additional fees arising from port delays impact the final freight cost.
Other Factors: Including insurance costs, weather/natural disasters, political instability, and trade policies, which can indirectly affect shipping costs.
By comprehensively considering the above factors, better logistics plans can be formulated to ensure safe and timely transportation while effectively controlling costs.
Steps for Ocean Freight Shipment from China
1. Quotation & Booking
1. Contact a Freight Forwarder
Provide cargo details: Type, volume, weight, POL/POD, transit time requirements.
Confirm Incoterms: e.g., FOB, CIF, etc.
Obtain Quote: Base ocean freight + surcharges (e.g., BAF, PCS).
2. Booking
Submit Booking Request/Form to confirm space and sailing schedule.
Receive Booking Confirmation / Shipping Order (S/O).
2. Cargo Preparation & Stuffing
1. Cargo Packaging
Reinforce packaging to sea freight standards. Special markings required for fragile or dangerous goods.
Some goods require inspection or fumigation (e.g., wood packaging needs the IPPC mark).
2. Stuffing Method
FCL: Shipper arranges a truck to the factory for stuffing, and the container is returned to the Container Yard (CY).
LCL: Forwarder consolidates cargo from multiple shippers into one container at a CFS (Container Freight Station).
3. Container Transport
Arrange drayage to move container from CY to loading point. After stuffing, container returns to port.
3. Export Customs Clearance & Loading
1. Export Customs Clearance
Prepare documents: Commercial Invoice, Packing List, Contract, Customs Declaration Form, Export License (if required).
Declare to Customs via a customs broker or self-filing. Release granted after inspection (if any).
2. Loading
Containers are loaded onto the vessel by terminal operators.
Shipping Line issues the Bill of Lading (B/L), the document of title.
4. Ocean Transit
1. Transit Mode Selection
Direct service or transshipment (via other ports).
* Fast vessel (shorter transit, higher cost) or slow/economy vessel.
2. Cargo Tracking
Track container status (e.g., ETA) via shipping line website or forwarder.
5. Destination Port Operations & Import Clearance
1. Discharge at POD
Cargo unloaded and placed in the terminal yard upon arrival.
Consignee must pay destination port charges (e.g., THC, terminal handling fees).
2. Import Customs Clearance
Submit documents: B/L, Invoice, Packing List, Certificate of Origin, Import License, etc.
Pay applicable duties and taxes (import permits may be required in some countries).
3. Delivery Order (D/O)
Obtain D/O by surrendering the Original B/L or through Telex Release (if applicable).
Arrange drayage for pickup.
6. Cargo Delivery
1. Inland Transport
Container transported to final destination (e.g., warehouse, factory).
For FCL, the empty container must be returned to the designated depot (to avoid detention charges).
2. Receipt & Confirmation
Consignee inspects cargo, signs delivery receipt, completing the shipment process.
Key Considerations for Ocean Freight
Document Accuracy: B/L information (description, weight, consignee) MUST match customs declarations exactly.
Time Planning: Buffer time for risks like port congestion, weather delays, and customs hold-ups.
Cost Budgeting: Account for all costs beyond base freight: destination fees, duties, taxes, insurance, etc.
Insurance: Highly recommended, especially for high-value cargo (e.g., Institute Cargo Clauses A / “All Risks”).
Regulatory Compliance: Understand import/export country regulations for specific goods (e.g., food, chemicals, controlled items).
MLS possesses extensive shipping experience, ensuring efficient and smooth ocean freight processes while minimizing transportation risks.
MLS Ocean Freight Advantages
Expertise Saves Time & Cost: Deep knowledge of the shipping market and international trade rules enables us to select optimal routes, carriers, and ports for clients, avoiding delays and unnecessary costs. Long-term relationships with carriers secure lower freight rates, reducing clients’ logistics expenses.
Rich Route Resources & Flexible Solutions: Partnerships with multiple carriers allow us to offer FCL and LCL options tailored to different cargo volumes. We provide various solutions like direct sailings, transshipments, fast or slow vessels to optimize transit times and costs.
Strong Risk Control & Contingency Handling: Expertise in managing disruptions like port congestion, space shortages, documentation issues, customs inspections, minimizing client losses. We offer international cargo insurance services to mitigate potential transit risks.
Efficient Customs Clearance: Familiarity with destination country customs policies ensures smooth clearance. We provide services including document preparation, declaration filing, and duty calculation, avoiding delays or fines due to documentation errors.
One-Stop Logistics Services: Comprehensive solutions covering warehousing, inland transport, container stuffing/de-stuffing, consolidation, deconsolidation, and final delivery. We also assist with Letter of Credit (L/C) settlement and marine insurance, simplifying the client’s operational process.
Freight forwarders act as the vital “bridge” in ocean freight, connecting exporters, importers, shipping lines, ports, and customs authorities to ensure cargo reaches its destination safely and efficiently. Leveraging our expertise, network resources, and robust risk management, we enable businesses and buyers to concentrate on their core activities, freeing them from the complexities of international logistics and better supporting their commercial success.