Global EconomyTransportation

Ocean Freight Shipping

Ocean Freight Shipping

Ocean Freight Shipping is the transportation of goods by sea or oceans. These goods are usually put in large cargo containers when shipped. Ocean Freight shipping is a very common way of transporting goods in large quantities. Most exporters and exporters use this mode of transport to send and receive goods all over the world.

Types of Ocean Freight

Ocean/ sea freight is broken down into four types:

  • Less than Container Load- In LCL, several people share the cargo container.
  • Roll on roll off – In this kind of shipping, vehicles go into the ship with their loads, and then they drive out of the ships once they arrive at their destination.
  • Dry bulk shipping- Used to transport bulk goods that are poured on the ship directly without being put on cargo containers.

In LCL, the container contains several shipments. LCL takes longer to be delivered that FCL loads.

How Does Ocean Freight Shipping Work?

When shipping your goods, you can choose a specialist to help you with the complicated processes and get your goods delivered safely. Making a simple mistake during shipping can cause you a lot of money, but getting an agent can minimize the risks.

The Steps of Ocean Shipping for an Importer

Do you want to import to Canada but feel scared of the complicated processes? The following steps are going to guide you on how you can import goods by ocean freight shipping. These points will minimize risks and maximize your profits.

Step 1

Before you import, you should first conduct due diligence on importing the goods to ensure that their standards comply with the regulations. There are several government departments which are responsible for the regulation of imports. Ensure that you get to know the department which regulates the standards of the type of goods you intend to import.

As an importer, you should also know that you solely bear the costs of imports as an importer.

Step 2

If it’s your first import, ensure that you get a Licensed Customs Broker and discuss the goods you want to import. Your customs broker will help you get the whole information about the duty of the regulations.

Step 3

After getting a customs broker and conducting your research on the goods, you need to get to the payments of the goods. Most suppliers want 50% payments upfront and clear the remaining balance after delivery, and others require you to provide a letter of credit.

You should note that not all venders have the same terms when it comes to terms of sale. It’s important to know the terms of your vendor before you pay for the goods.

As an importer, you should know the type of packaging used on your goods and how safe it is. Most imports come in wood packaging. However, it’s important to know if what the regulations say about the type of packaging used on your goods.

Step 4

After your goods reach the port, they will be discharged. A bill of lading will be prepared to enable you to access your goods. A bill of lading is similar to a receipt, which shows that you have received your goods.  For the first time importers, an examination of the imported goods will be conducted.

The departments are concerned with the type of goods you imported conduct the exam using gamma rays, so you don’t need to worry about damages during this process.

Step 5

When the goods reach you, your supplier will send you the original document, and your customs broker will provide all the required documents. The customs broker will fill an invoice and send it to the CBSA.

It’s good to have the paperwork ready before your goods arrive to save you the time and extra costs.

Step 6

You will need to find a trucker to carry your goods to your destination. If you don’t have any trucker in mind being your first import, your customs broker can link you with trucking companies that will take your goods to your final destination.

Why should you Choose Ocean Freight Over Other Methods?

  • Ocean freight has a big capacity and is cheaper than other shipping methods. If you’re shipping heavy shipments, using air freight can be very expensive compared to sea freight.
  • Sea freight shipping has few shipping restrictions. With ocean freight shipping, you can transport goods that are restricted on air freight like petroleum and flammable goods.
  • Ocean freight shipping is very efficient for shipping bulk goods.
  • VAT and other duty charges can be cheaper compared to freight shipping.
  • Ocean freight shipping is friendly to the environment compared to other freight shipping methods.

What are the disadvantages of Ocean Freight Shipping?

  • High Risks – Ocean freight shipping can be extremely risky, especially when shipping using LCL. In case of accidents, you might lose the whole consignments.
  • It might be a bit expensive to ship smaller goods; thus, making other methods efficient for smaller shipments.
  • Unlike air and road freight shipping, ocean damage can be prone to damage when shipping.

Ocean freight shipping only seems complicated if you don’t have the needed information. With all the information provided in this article, you might consider using sea shipping on your next imports. Familiarize yourself with the regulations to avoid losing your goods.

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