OCEAN SHIPPING
Ocean freight refers to the transportation of goods by sea. In global trade, 80-90% of goods are transported via ocean. While ocean transport typically takes longer than other methods, it offers significant advantages, such as low maintenance of waterways, high capacity for transporting large quantities, and relatively low costs.
Nowadays, there are several different types of ocean cargo. Generally speaking, ocean cargo is divided into the following categories:
FCL (Full Container Load）
FCL stands for “Full Container Load,” which refers to a single shipping container reserved exclusively by a shipper for their own cargo. This means the shipper does not need to share the container with goods from other shippers. This arrangement enhances security and simplifies ocean logistics management. The benefits of using full container loads include a reduced risk of damage or loss and shorter transit times, as shipping lines maintain full control over the entire cargo.
LCL（Less than Container Load）
LCL shipping refers to cargo that takes up only a portion of the entire container and is shipped in the same container along with other cargo from other shippers, as the size of the cargo does not require that much space. Small cargo that requires economical shipping and has low time requirements can be shipped in LCL containers.
RORO（RoRo ship）
RoRo ship is the abbreviation of ROLL-ON/ROLL-OFF. It is specially used for passenger vehicles, semi-trailer trucks and even train carriages. Wheeled vehicles can be directly loaded on or unloaded from the ship without being placed in containers.
Dry Cargo
Freight shippers use the holds of ships to transport certain goods, such as grain, coal and ore, which are not normally transported in multimodal containers.
Bulk Cargo
Freight shippers use the holds of ships to transport certain cargo, such as steel beams and other large custom cargo, that is not suitable for transport in multimodal containers.
Ocean Shipping advantage
LOW COST:
Compared with air freight, ocean freight has lower transportation costs and is especially suitable for long-distance transportation of large quantities and heavy goods, so it has a significant cost advantage in global trade.
LARGE CARRYING CAPACITY:
The carrying capacity of maritime vessels far exceeds that of other modes of transportation, and they can transport large goods and large quantities of commodities to meet the demand for freight volume in international trade.
WIDE APPLICABILITY:
Southeast Asia: usually takes 3-5 days.
Middle East: usually takes 5-12 days.
Indian subcontinent: usually takes 3-7 days.
Ocean shipping can transport almost any type of cargo, including liquids, bulk cargo, container cargo, etc. It can meet the needs of various industries and is extremely flexible.
ENVIRONMENTALLY FRIENDLY:
Compared with other modes of transportation, maritime transportation has relatively lower carbon emissions and higher energy efficiency, so it has less impact on the environment and is more in line with the requirements of sustainable development.
Ocean Shipping time from china to various continents
The time it takes to ship from China to various continents depends on the location of the destination port, route selection, seasonal factors, etc. The following are the approximate shipping times from major Chinese ports (such as Shenzhen, Shanghai, Ningbo, etc.) to major ports on various continents:
1. Asia:
Southeast Asian countries: about 5-12 days
East Asian countries: about 3-7 days
South Asian countries: about 10-20 days
2. North America:
West Coast ports (such as Los Angeles, Vancouver): about 15-25 days
East Coast ports (such as New York, Savannah): about 25-40 days
Gulf of Mexico ports (such as Houston): about 22-35 days
3. South America:
East Coast ports (such as Santos, Brazil, Buenos Aires, Argentina): about 30-45 days
West Coast ports (such as Callao, Peru, Valparaiso, Chile): about 25-40 days
4. Europe:
Northern European ports (such as Hamburg, Germany, Rotterdam, Netherlands): about 25-35 days
Mediterranean ports (such as Genoa, Italy, Barcelona, Spain): about 20-30 days
5. Africa:
North African ports (such as Alexandria in Egypt, Casablanca in Morocco): about 20-30 days
West African ports (such as Lagos in Nigeria): about 30-45 days
South African ports (such as Durban, Cape Town): about 25-35 days
East African ports (such as Mombasa in Kenya, Dar es Salaam in Tanzania): about 20-35 days
6. Oceania:
Australia (such as Sydney, Melbourne): about 15-25 days
New Zealand (such as Auckland): about 20-30 days
These times are estimated standard port to port times and do not include additional times for customs clearance, inland transportation, etc. Actual transit times may vary depending on individual circumstances.
What factors affect the ocean shipping price?
Ocean freight prices are affected by many factors, these following are the main factors:
1. Routes and destinations:
Freight rates vary greatly between different routes and destinations. Long-distance routes or remote ports usually cost more.
2. Fuel prices:
Fuel is one of the main costs of ship operation, and fluctuations in fuel prices will directly affect ocean freight prices.
3. Cargo type:
Different types of cargo (such as general cargo, dangerous goods, refrigerated cargo) have different freight rates. Dangerous goods and cargo that require special handling cost more.
4. Cargo weight and volume:
Freight rates are usually calculated based on the weight (tons) or volume (cubic meters) of the cargo, and heavier or larger cargo costs more.
5. Container type and size:
Using different types of containers (such as 20-foot, 40-foot standard containers, or refrigerated containers) will result in different costs. Large-sized or special containers cost more.
6. Seasonal factors:
Ocean freight prices may change with the season. Freight rates usually rise during peak seasons (such as holidays and agricultural product export seasons), while they may fall during off-seasons.
7. Port charges:
Different ports have different loading and unloading charges, port fees, etc., which will also affect the total freight. Some ports have higher operating costs, so the shipping costs are also higher.
8. Supply and demand in the freight market:
Supply and demand have a direct impact on shipping prices. When demand is high and capacity is tight, freight rates rise; conversely, when demand is low, freight rates fall.
9. Shipping company pricing strategy:
Different shipping companies may have different pricing strategies, which will result in different freight rates.
10. Exchange rate fluctuations:
Shipping costs are usually denominated in US dollars, and exchange rate fluctuations will affect the freight costs in different countries.
11. Additional charges:
In some cases, shipping companies may charge additional charges, such as fuel surcharge (BAF), peak season surcharge (PSS), port congestion charges, etc., which will directly increase the cost of shipping.
12. Policies and regulations:
Government policies, international trade regulations or tariff adjustments may also affect shipping costs, such as low-sulfur fuel surcharges caused by environmental regulations.
These factors interact with each other and jointly determine the final price of ocean freight. When conducting international trade, understanding these factors will help you better estimate and control logistics costs.You can request a free ocean freight quote now to find out about ocean freight costs.
What goods are suitable for ocean freight?
- BULK COMMODITIES
- HEAVY CARGO
- NON-URGENT GOODS
- LOW-VALUE OR HIGH-WEIGHT-RATIO GOODS
- PROJECT CARGO
- DANGEROUS GOODS
BULK COMMODITIES
Such as steel products, large machinery and equipment, and large vehicles are usually transported in bulk by sea, which is more cost-effective.
HEAVY CARGO
Such as machinery and equipment, large vehicles, and building materials. Sea transportation has relatively few restrictions on weight and volume, making it an ideal choice for transporting these goods.
LOW-VALUE OR HIGH-WEIGHT-RATIO GOODS
For example, high-weight, low-value goods such as metals, wood, and paper, the low cost of sea transportation can help save logistics costs
PROJECT CARGO
Engineering equipment, complete sets of equipment, wind turbines, etc., large project cargo that requires special handling, sea transportation provides flexible transportation solutions.
DANGEROUS GOODS
Such as chemicals, liquefied gases, flammables, etc., sea transportation provides special ships and containers to safely transport these goods.
What are the size requirements for Ocean Shipping?
The size requirements for ocean cargo depend primarily on the type of container used, how the cargo is packed, and the vessel’s loading capacity. Here are some common container types and their corresponding size requirements:
1. Dry Container
20ft container:
Internal dimensions: 5.9m long x 2.35m wide x 2.39m high
Volume: about 33 cubic meters
Maximum load: about 28 tons
40ft container:
Internal dimensions: 12.03m long x 2.35m wide x 2.39m high
Volume: about 67 cubic meters
Maximum load: about 26.5 tons
2. High Cube Container
40ft High Cube:
Internal dimensions: 12.03m long x 2.35m wide x 2.69m high
Volume: about 76 cubic meters
Maximum load capacity: about 26.5 tons
3. Open Top Container
Used to load cargo that is higher than a standard container. It has no fixed top cover and can be loaded by hoisting.
The internal dimensions of 20-foot and 40-foot open top containers are similar to those of the corresponding standard containers, but the height can be larger.
4. Flat Rack Container
Suitable for extra-wide, extra-high or irregularly shaped cargo, such as machinery and equipment, large vehicles, etc.
The width of 20-foot and 40-foot flat rack containers is similar to that of standard containers, but there are no fixed side walls and top plates, and the height and width can slightly exceed the limits of standard containers.
5. Refrigerated Container (Reefer)
Used for cargo that requires temperature control, and the internal space is slightly smaller than that of a standard container.
20-foot refrigerated container:
Internal dimensions: 5.44m long x 2.29m wide x 2.27m high
Volume: approximately 28 cubic meters
40-foot refrigerated container:
Internal dimensions: 11.58m long x 2.29m wide x 2.27m high
Volume: approximately 58 cubic meters
6. Oversized cargo
For cargo that exceeds the size of a standard container, special containers (such as flatbed containers) or no-container transportation are required. Such cargo usually requires special declarations and permits and may face additional charges.
Key considerations:
The length, width and height of the cargo must be within the internal dimensions of the selected container. Extra-long, extra-wide or extra-high cargo may require the use of special containers.
Therefore, accurately measuring and understanding the size and weight of the cargo and selecting the appropriate container type are essential to ensure smooth sea transportation.
What is the difference between LCL and FCL in shipping? How should I choose LCL or FCL?
In Ocean Shipping, LCL (Less than Container Load) and FCL (Full Container Load) are two common modes of transportation, which are suitable for the transportation needs of different cargo volumes.
1. Definition
LCL (Less than Container Load)
Refers to the situation where the cargo is loaded together with other customers’ cargo in one container when the cargo volume is not enough to fill a container.
FCL (Full Container Load)
Refers to the situation where the cargo owner has a container exclusively and does not need to mix with other customers’ cargo.
2. Applicable scenarios
LCL
Applicable to small or scattered cargo, especially small and medium-sized enterprises or customers with low-frequency transportation needs.
FCL
Applicable to bulk cargo, valuable cargo or cargo that requires exclusive transportation, such as products with high environmental or safety requirements.
3. Cost
LCL
Freight is calculated by volume (cubic meters, CBM) or weight, and the cost is shared among multiple customers, which is suitable for small-volume transportation.
FCL
The freight is calculated by container. Although the single-time fee is higher, it is more cost-effective for large quantities of goods.
4. Operation process
LCL
The goods need to be sent to the LCL warehouse and consolidated by the freight forwarder.
Sorting is required after unloading at the destination, which may take a long time.
FCL
The owner directly arranges the whole container transportation, and the loading and unloading efficiency is higher.
No sorting is required, reducing the risk of mis-shipping or damage of goods during transportation.
5. Cargo safety
LCL
Due to mixing with other goods, there may be a risk of contamination or damage of goods.
There are higher requirements for cargo packaging and protection.
FCL
Goods are stored separately, with lower risks and higher safety.
6. Time requirements
LCL
Usually requires additional LCL and sorting time, and the overall transportation time may be longer.
FCL
Direct transportation after packing, the time is more controllable, suitable for goods with high timeliness requirements.
7. Flexibility
LCL
Suitable for small-volume transportation, on-demand delivery, and high flexibility.
FCL
Suitable for regular large-volume transportation, more planned.
Whether to choose LCL or FCL depends mainly on the quantity of goods, transportation budget and time requirements. If the quantity of goods is not enough to fill a container, LCL can be selected; if the quantity of goods is large or there are high requirements for cargo safety and transportation efficiency, FCL is more suitable.
How to choose china's ocean shipping port？
When choosing a major seaport in China, you need to consider several factors to ensure that the port can meet your logistics needs. Here are some key considerations when choosing a major seaport in China:
Containerized cargo: Ports such as Shanghai, Shenzhen, and Ningbo are important hubs for containerized cargo.
1. Cargo type and destination
Bulk cargo: Ports such as Qingdao, Tianjin, and Guangzhou are more proficient in handling bulk cargo.
Frozen cargo: Shanghai, Shenzhen, and Ningbo have advanced cold chain logistics facilities.
Destination:
Choosing a port close to a major market or final destination can reduce transportation time and cost. For example, Guangzhou or Xiamen Port can be selected for exporting to Southeast Asian markets.
2. Port facilities and services
Facilities and Capabilities:
Modern Facilities: ports with advanced loading equipment and infrastructure, like Shanghai and Shenzhen.
Warehousing Capabilities: Ports such as Ningbo and Qingdao offer extensive warehousing services.
Service Scope:
Value-Added Services: Ensure the port provides essential services like refrigeration and logistics support.
Customs Clearance: Efficient customs and inspection services minimize goods’ detention time.
3. Routes and shipping companies
Route Network:
International Routes: Major ports like Shanghai, Shenzhen, and Ningbo offer extensive international connections and direct services.
Transshipment Capacity: Ports with strong transshipment networks optimize logistics.
Shipping Companies:
Partnering with major shipping companies ensures timely delivery. Understanding port and shipping company collaborations helps in selecting the best port.
4. Transportation costs
Port fees: Differences in port fees, loading and unloading fees, etc. may affect the overall transportation cost. Choosing a port with reasonable fees can reduce costs.
Inland transportation: The inland transportation costs from the port to the final destination should also be considered. Ports close to major traffic arteries can usually reduce inland transportation costs.
5. Logistics and customs clearance efficiency
Customs clearance efficiency: Choosing a port with high customs clearance efficiency can reduce customs clearance time and costs. The customs clearance speed and process of the port are crucial to the transportation of goods.
Logistics support: Understand the logistics supporting facilities of the port, such as warehousing, distribution services, etc., to ensure that they can meet your logistics needs.
6. Shipping congestion
Congestion:
Some major ports (such as Shanghai and Shenzhen) may experience congestion during peak hours. Choosing a port with smoother traffic can avoid delays caused by congestion.
7. Policies and regulations
Policy support: Some ports may enjoy special policy support or preferential policies, such as free trade zone policies, tax reductions, etc.
Environmental regulations: Make sure the selected port complies with environmental regulations to avoid additional costs caused by environmental policies.
Overview of major shipping ports in china:
Shanghai Port
China’s largest container port, ranked among the top in the world, with advanced facilities and a wide network of routes.
Shenzhen Port
Including Yantian Port, Shekou Port, etc., it is an important container port in the south, close to Hong Kong, serving the Southeast Asian market.
Ningbo Port
An important port in the Yangtze River Delta region, with strong shipping capacity and extensive international routes.
Guangzhou Port
An important port in the Pearl River Delta, serving the southern market and Southeast Asia.
Qingdao Port
A major port facing Northeast Asia, with advanced facilities and a wide network of routes.
Tianjin Port
Amajor port in the north, serving the North China and Northeast markets.
Taking the above factors into consideration, you can choose the most suitable port to optimize your logistics costs and efficiency.
How ocean shipping works: the complete process explained?
