Overview of Ocean Freight Shipping
While air, rail, and truck are essential shipping methods, ocean freight remains the top choice for transporting huge quantities of products worldwide. Almost all businesses that participate in international trade use ocean freight shipping as part of their supply chain. In fact, more than 80 percent of international trade benefits from ocean freight shipping.
One essential aspect of ocean freight shipping is the use of intermodal containers, transported through large container ships that can also carry hundreds or thousands of containers. One benefit of the intermodal container is its standardization. Every aspect of containers, including their physical dimensions and how they are stacked to the twist locks used to fasten them into truck trailers and decks, is standardized. These standards have allowed carriers to load, move, and unload goods in ports consistently and efficiently, saving time and resources.
Ocean freight shipping is a cost-effective alternative to transporting bulk goods over long distances. Except for air freight, which is more expensive, ocean freight shipping is the only choice for intercontinental shipping. It can also transport hazardous chemicals that air freight cannot. Compared to other shipping methods, ocean freight shipping has a lower carbon footprint since one cargo ship is sufficient to move many goods.
On the other hand, ocean freight shipping is the slowest method of moving goods. Depending on the distance, shipping across different continents typically takes a minimum of two weeks to reach their destination. In addition, businesses that use ocean freight shipping may also face delays due to the significant amount of resources needed to load and unload the ship.
Generally, ocean freight shipping falls into five categories: full container load (FCL), less-than-container load (LCL), roll-on roll-off (RORO), dry bulk, and breakbulk. With FCL, cargo shippers reserve an entire container to ship their cargo. Meanwhile, with LCL, cargo shippers purchase only a space inside a container.
RORO refers to wheeled vehicles, such as cars and semi-tracks. Instead of being stored inside a container, they are rolled on and off the ship. Dry bulk is reserved for certain goods such as sugar, grain, sand, and cement. Cargo shippers can use the ship’s hold or compartment to store these goods. Lastly, breakbulk includes goods that do not typically fit inside an intermodal container. This includes steel, large custom-made goods, and wood.
There are different types of businesses involved in the supply chain of ocean freight shipping, including ocean freight forwarder (OFF), vessel-operating common carrier (VOCC), and non-vessel operating common carrier (NVOCC). OFF is an individual or a company that prepares and reserves the space for the cargo on the ship. They do not own the ship necessarily but serve as middlemen to ensure that the goods reach their destination.
Meanwhile, a VOCC is a public ocean carrier with its own vessels. The company leases them to other companies. The ship operator monitors the cargo and ensures timely arrival at the correct port. In contrast, NVOCC does not own vessels but is still responsible for the cargo. NVOCCs lease cargo space from shipowners or contract the transportation out to a vessel owner.
